I'm trying to code a strategy that can be effective in the situation shown in the picture attached. For discussion purpose, let's call it a 'volatile range'. The picture is on a 1-hr chart. At a longer time frame, it will look like a normal range. At a smaller time frame, it will look like a nice trend. Please don't tell me to zoom into a smaller time frame and code a trend strategy, or go to a longer time frame and code a range strategy. I'm trying to solve the situation as illustrated, because it can happen at any time frame.
Any suggestions on how to place a trade? Any strategy to 'out-perform' under such market conditions?
I've tried trend techniques and they end up buying when price is high and shorting when price is low. I also tried reversion techniques (eg, BBands, iEnvelope, RSI, Stoch) and the price action always hits the reasonable SL before turning around.
Many thanks in advance!
"The first rule of forecasting should be that the unforeseen keeps making the future unforeseeable." - David McCasland (January 5,2012, Our Daily Bread)