We try to "standarize" the kinds of markets that we wish to participate, by filtering volatile times, news time, etc.
In our Breakout strategy, we avoid news spikes and wait for the trend to confirm itself as a viable move 15 minutes after an important report. We also avoid those typical times of "back and forth" action, such as the London morning, Dow opening, etc.
In this manner, when we enter a trend, we have some degree of certainty that it is not just a news spike, or a false breakout. It does not always work, of course, but the probabilities are on our side, and also the long term profitability.
When it comes to scalping, the situation is even better, since we only scalp when most of the markets are asleep. That is a sure way of making market conditions similar. After London closes and before Australia and Japan open, we have a good degree of certainty about the number of participants in the market, the anticipated news announcements or general political gossip that might upset the market, etc.
Furthermore, each scalping pair has its very own schedule:
EurAud and EurChf, start at 16:00 just as soon as Europe closes, assuming other scalping conditions and volatility requirements are met.
EurCad, however, waits until the oil market closes in NY (18:30 gmt), since the Cad is highly affected by oil prices. UsdJpy also enters at 18:30.
Finally EurGbp enters at 19:00, because with this pair we scalp a very narrow channel, and want it to be very quiet to perform best - entering sooner will find you "off channel" for long periods of time, should there be the slightest trend leftover after Europe closes, which would waste the whole day waiting for it to "come back", instead of scalping away once the dust has settled into a narrow "scalping" channel.
Granted any trading strategy, and therefore any trading EA, has markets conditions which would cause losses. But the more homogeneous the market conditions, the easier, more controlled action we can expect.
Long live scalping!
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