Can you trade a profitable strategy on any timeframe? Well, I'm not convinced about that. So I decided to make a trading experiment out of it.
Although for some coaches this is “common sense” that all timeframes are the same, my experience in the Forex market shows me otherwise.
Some strategies work extremely well on 1 timeframe but may fail on another
…especially when you go from swing trading to day trading.
Watch more: Swing Trading vs. Day Trading
So that's why I'm following this principle:
Test everything.
And a few months back, I started testing my Bollinger Bands Reversal strategy
…on lower timeframes.
The results on the 1hr, 4hr, etc. are good.
But what about the 30 min charts?
I decided – to have proper testing – to trade the EXACT same thing live on the 30 min charts.
Instead of my regular lot size, I used a size of 0.01.
The goal was to trade those setups with the same configuration as my live account.
But to not worry about money.
Today I'm at a point where I have taken 130 trades (a decent number).
I've looked at the stats recorded in MyFxBook.
Overall, the average win is in check.
But the win rate is around 20%.
Here's what's interesting:
2 days of the week (Thu & Fri) weren't profitable.
I made a few errors – 6 losses due to that.
The results are fairly consistent throughout the day with a few losing hours
…but not enough data to cut hours.
However, even after cutting all these things from the results, the strategy is still losing on the 30 min chart.
I've tried to understand what else could come into play here.
But that's still under progress…
All that to say…
You'll surely test things in trading that won't work.
It's part of it!
Watch: The Best Way To Backtest Any Strategy
And the same thing happens to any business out there.
They launch a product that no one buys.
Or they try a new method that confuses everyone.
Your role as a trader isn't to take a bad trading experiment personally.
You're doing your job. Period.
And the more you test, the more you'll find things that work!
One thing I've noticed over the past 7 years of trading (my story) is that my tests help me go in the right direction…
Keep crushing it πͺπ