OK, lets do that - lets focus on the play. you took a position which cost you the equivalent of 1.2% of the share price movement excluding the spread - which probably adds another 0.5%. Your breakeven was 1.2%. Now your risk was maybe 0.5% - you would exit on a 0.5% move to the downside - which is helluva tight, but fine. So now to make a decent risk reward play - your exit is now 2.1% minimum in order to break even on a 50/50 play. So to make a profitable strategy, you would be looking for at least a 2.5% move on FSR. 2.5% equates to 50 points. FSR's average true range over 14 days is 41 points, so even if you could capture the extremes of hte daily price movement, you still would not be profitable with this type of trade. You would have to capture the daily extremes (enter at the low, and exit at the high) AND you would have to be able to do that on the percentage of days where price movement is above its ATR. Still want to call this a low risk strategy?
