It's a tough nut to trade. I've managed to carve out a small edge shorting predominantly out of hours algorithmically after many attempts. My conclusion after studying it is that it is unique in that it mean reverts almost daily but yet it's a trending index with high retail participation (making it inefficient). The regime changes occur during a trend and become hard to detect as it stays on trend rendering false signals. It also has high spread and a split shift.
Manually it requires large stops (250-300) and an abnormal amount of undiffused commitment. Which means you want 400+ points minimum. Signals need to be strong, clear and on high time frames IMO. Too tight a stop and your toast as spreads start to really impact performance.
I do trade it now I've got this information but it's not a staple. Scalping (if you like playing with fire) it can be done with 5/1min Heiken ashi but you need order flow and hot keys and a very short time stop and a super fast stop ratcheting system. 2 cups of coffee but not 3.
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