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Q: I like both the R20 and R30 bars for trading the Russell emini (ER2). The dilemma that I have had for some time is selecting either R20 or R30. If I use R20, the best signals seem to be on R30 that day and vice versa. I also don't seem to be able to focus on both time frames at the same time. This is perhaps one of the drawbacks to constant range bars, it seems to be either one or the other time frames. I have experimented with say R25 but it is basically the same as R20. There is probably no answer to this problem but I thought I would ask anyway.
A: Since the ER2 ticks in 10 increments, the R25 is not a logical selection. When a R25 range is exceeded it starts a new bar so the bar completed would be an R20 size. That is why they look the same.
I do not have an answer as to whether R20 or R30 should be used. We would all do better if our crystal ball were a bit clearer in advance of trying to use it. Your question is similar to where a day is going to be choppy or trendy, and wishing one knew in advance what type it would be because some studies work better with chop and others better with trends.
Last modified 1/23/08 12:45 AM |
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