Very nice post.
I think the way to go is to become a trend follower like Bill Dunn, John W. Henry, Ed Seykota, Jerry Parker, Donchain and many other market wizards. They make 25% avg. per year (1000% if compounded) for more than 30 years now. That's millions every year.
Most of these market wizards created their on system decades ago from simple indicators like MA, MACD, Stoch and RSI. The originals are being used profitably till nowadays, though there're some minor adjustments. That said, the Simply Olds still work beautifully.
Those trend followers have something in common:
- They don't predict the market but go with it.
- They don't aim for fixed profit; they just let the profit run and cut the loss quick.
- They dont "buy low, sell high", because doing that would be pure prediction.
Like gaz, you said "aiming for 10-20 pips". But why so while the trend is going the right direction? Just let it run until the trend breaks up. If the market retraces, close the position to get breakeven or some profit. Although it's easy being said than done, those wizards can do it, so we can do it too.
I'll be writing some trend following strategies later, stay tuned.