The strategy employed here takes a contrarian approach to the widely accepted interpretation of the Gann Square of 9. Extensive data analysis, as demonstrated with the Reliance and Vedanta datasets, reveals significant losses associated with the conventional interpretation.
In this context, the strategy entails a reversal of the typical directives. Specifically:
- “Sell if the price goes below x with stoploss at y and target at z” is transformed into “Buy if the price goes below x with target at y and stoploss at z.”
- “Buy if the price goes above x with stoploss at y and target at z” is converted into “Sell if the price goes above x with target at y and stoploss at z.”
This strategic shift challenges conventional wisdom and aims to derive distinct advantages from this alternative perspective.
This is a comprehensive page showcasing the historical performance of live data along with various analytics.
Gann Square of 9 Strategy does not Work!
The backtesting results unequivocally demonstrate that the Gann Square of 9 strategy not only fails to perform as expected but actually yields favorable results when taking the opposite trade approach. In other words, selling when there is a buy entry appears to be more profitable, with the buy target serving as our stop loss for the sell trade, and so on.
Or, is it Misinterpreted?
When something does not work with utter perfection, thats a matter of concern too! Despite its widespread popularity, it seems that this strategy has been misinterpreted and blindly copied by many, potentially turning a minor idea into a significant but misguided trading approach. So, why not consider reversing the strategy for more favorable outcomes?