Topic: contrarian investment for consistant profits
In this method you first identify which currency does well against the other. Always go long on the stronger currency.
In the time frame 2006-2007
I used donchian strategy with time frame of 10.
1. enter long positions eur/usd when price crosses 10 day low
2. exit long positions when stock cuts 10 day high
3. Open long positions only
This strategy works whenever there is a general trend. Try the same strategy in 2000 - 2001 when dollar was stronger than euro. Use the same strategy shorting the euro. We end up with a profit every time.
No one seems to analyse the positions year by year, each one is busy giving the total pips, but are all strategies giving consistant pips year after year?
The above strategy does so for all currency pairs having trends, but has problems in a sideways market. sideways market needs a longer time frame of 55 days or so.
happy trading for all