[Soultrader]

Ive been paying attention to how the ER2 respects the 34ema as well. In hindsight it looks beautiful. However, a few things do make me feel uncomfortable.

The scalping method automatically assumes entry smack at the 34ema. Ive been watching the ER2 trade when it reaches the 34ema and it tends to reverse very fast. As the ema moves constantly, a limit order would be hard to place thus resorting to market orders. Timing the entry would be fairly hard.

Obviously, traders must learn to recognize chop from trend. In a choppy market this strategy can annihilate a trader. In a trending market this strategy works like a charm. However, in a rangebound market (not too choppy) the probability of wins tends to decrease. It becomes hard to identify which setups to take unless you add another filter; ex. pivot, tape, divergence, etc...

Ive also never been a fan of moving averages so applying this strategy into my trading would be a serious commitment. I'll keep an eye on it and try to combine it with some other techniques. Will keep this thread posted.