Spread-based entries?

Place your new trading idea here to see if someone can automate it.
Post Reply
nonlinear
Trader
Posts: 293
Joined: Fri Jun 01, 2012 2:56 pm
Location: Washington DC

Spread-based entries?

Post by nonlinear »

I have been thinking about a new trading system and was curious if anyone has done any testing with systems that place entries based on broker spread? I have not tried to track spread patterns in any detail, but it appears that during hours of normal liquidity, spreads typically widen (with honest brokers) when supply or demand get exhausted, such as might occur during a continuous price breakout at a news event. Perhaps this is futile, but I am curious if spread widening can be used for entries (and possible exits). I know it sounds dimwitted and counter-intuitive, but one thought is to seek entries when spread widens with some associated price action during times of good liquidity (three conditions). Has anyone seen or tested something like this? Just exploring some ideas. Thanks.
User avatar
Xeroforex
Trader
Posts: 35
Joined: Fri May 25, 2012 12:23 am
Location: Melbourne, Australia

Spread-based entries?

Post by Xeroforex »

Hey nonlinear,

Attached is an indi from this thread: http://www.stevehopwoodforex.com/phpBB3 ... =27&t=4462

Hope it's what you are looking for, and Captain Jack has a bit to say about spread widening/manipulation.

Cheers
You do not have the required permissions to view the files attached to this post.
“If you want to make an apple pie from scratch, you must first create the universe.”
nonlinear
Trader
Posts: 293
Joined: Fri Jun 01, 2012 2:56 pm
Location: Washington DC

Spread-based entries?

Post by nonlinear »

Thanks, will take a look at that indicator and thread. At first glance some of this is similar to what I had in mind, including logging the spread for some period of time.
Post Reply

Return to “Ideas for Possible Automation”