Quote Originally Posted by Billy View Post
The RR ratio doesn’t necessarily use the SS2 & 200dma as references. These are today’s references simply because they are the strongest levels within the first clusters. They are within reach of a one-day trading session volatility, based on ATR which is used as reference for defining the clusters width. The clusters widths and strongest supports and resistances within the first clusters are changing daily. (Note that there are some proprietary exceptions, but I won’t develop these).
The robot has no timeframe constraints and will always enter at a 3:1 RR multi-timeframe limit. This is simply the logical conclusion drawn from backtesting for best risk-adjusted long term performance.
Billy
Thank you for the enlighting answer, Billy. Is there a big difference if the strongest levels (within the first clusters, reachable with the defined volatility) happen to be daily or weekly pivots rather than, say, semester or annual? Wouldn't the RR be considered less reliable or at least render the trade to more likely be shorter-lived?

Trader D