Congratulations for your success. I have decided to move to this strategy, because of the limited time I can trade. What time period do you normally trade?
I'm using a similar system for scalping the Eur/Usd. On a 1 minute chart I use rsi 14 (70, 30), and bollinger bands (20, 2). I look for over bought/sold on the rsi and price movement outside the bollinger bands to confirm entry. I want to know more about your system to see where I differ. I don't get quite as manny entries as you do and your system seems a little bit more solid than mine. About how long are you usually in your trades? Looking forward to the discussion.
Thanks leinad. I have the bollys on mine too. Great set up when the price is outside of the bands. If price is overbought/sold and outside the bands and hitting support/resistance it is almost a lock. Some trades I am in for a few seconds, and I have had ones as long as a few hours. Normally its just a few minutes though.
Every time I have had a go at scalping I do well for a while then I get taken to the cleaners on a few bad trades, I think your execution skills have to be very good. Also, I found it easier on futures due to speed of execution, these metatrader forex accounts are so damn slow.
Jtrade, hoss, FX et al
I'm interested to know how you determine to pull the trigger on entries and exits, is it mechanical or by feel? also, are your losses about 2-3X larger than your profits or have you found a way to limit the losses further?
Cam
This is the hard question to answer. Yes, I believe in certain situations I am using all of the indicators, but my success is based on the feel and visualizing when we are due for a retracement based on the look of a wave. I think that comes from screen time and is hard to articulate. But, it can be done. Pick a curreny pair like eur/usd and trade only it for a while. you will develop a feel for movements.
I saw some MA crosses as well. What are those MAs and do you use them to pull the trigger? Also the images were not clear. Can you re post a larger version, may be a JPG
Thanks, looks very promising for scalping.
Good luck
TradeStar
Haste not to Enter AND Haste not to Exit !
-TradeStar
Joined Jun 2006
|564 Posts|
Status: Theee Ohio State University
I'll get some images up here soon. Trying to figure out the best way to do it. You'll notice on some of the trades that they seem like a complete winner no matter what. Anything can happen, but I thought about sitting around and waiting on nothing but those ones and loading the boat for 5 pips. Make a couple trades and be done for the day. I use the 200 ema just to give me an idea where price is. Price always comes back to it and settles there. The 5 ema gives me an idea of true price. If the movement gets far away from the 5, the price will always get back to it quickly. If you cross that with overbought/sold, resistance/support, outside bands, you are about 99% ready to slam 5 pips. Nothing is ever for sure, but I nail these ones constantly.
Joined Jun 2006
|564 Posts|
Status: Theee Ohio State University
Here's a couple beauties. Let me know if you guys have questions. Waited for price to get near pivot/murrey in each instance (be patient or take them), RSI was over 80, price was pushing the edge of the bands, and price was away from the 5 ema. You must be quick, but an easy 5 pips countertrend trade with a set TP to grab them. I had about 10-12 of these on Friday.
I decided to use a smaller TF because of my limited availability to look at charts. I trade 0300 -0700. I have made a decision to increase lots as I increase my account. I decided that I can capture 15 - 20 pips per day using 1H bars and placing orders. I have been successful, but moving to a smaller TF (1min or 5 min) makes sense for my target of 15 - 20 pips per day. What I am doing differently is placing a limit order to take profits. Today I had 4 trades. The results of those 4 trades are:
E/U 12 pips at 0409
G/U 1 pips at 0512
E/U 13 pips at 0626
G/U 14 pips at 0626
Total 40 pips
I see some lines I don't recognize on your example. You say "Waited for price to get near pivot/murrey in each instance". I'm going to reveal my ignorance, but what are you referring to as "pivot/murrey"?
Thanks, I have definitely gotten better results as I've learned your approach!
Joined Jun 2006
|564 Posts|
Status: Theee Ohio State University
toons,
yes, i wait until this situation happens, make sure it is on resistance then trade it for 5 pips. if it goes against me i wait for oversold/divergence again then re-enter. i do these all day long. obviously you must set your own stop loss according to your money management if the trade goes to far against you. demo trade it until you get the hang of it. it is second nature to me now.
I see some lines I don't recognize on your example. You say "Waited for price to get near pivot/murrey in each instance". I'm going to reveal my ignorance, but what are you referring to as "pivot/murrey"?
Thanks, I have definitely gotten better results as I've learned your approach!
Yes pivot lines and murrey math lines show possible areas of support and resistance. You can find them all over the net for MT4. I look for extreme OS/OB when these levels are hit and look for 5 pip countertrend trades.
Hi i have attached the screen shot.
Any idea hoss how to avoid such trades.
Trades like these have burned me and taken away profits.
Thanks
Toons,
One more thing. It looks like you fell behind on a breakout. I like to see set ups that have at least 2-3 pushes/waves in a particular direction. That tells me we are little closer to exhaustion when we enter. So, keep an eye on bollys when they are close together and do not trade the first wave outside of the bollys. Be patient and wait for that second or third push. I guess these are the types of things I was talking about when I said I have lots of screen time and I forget to mention.
I decided to use a smaller TF because of my limited availability to look at charts. I trade 0300 -0700. I have made a decision to increase lots as I increase my account. I decided that I can capture 15 - 20 pips per day using 1H bars and placing orders. I have been successful, but moving to a smaller TF (1min or 5 min) makes sense for my target of 15 - 20 pips per day. What I am doing differently is placing a limit order to take profits. Today I had 4 trades. The results of those 4 trades are:
E/U 12 pips at 0409
G/U 1 pips at 0512
E/U 13 pips at...
Nice job. Trade what works for ya! I mainly stick to EU and UJ for this by the way. Low spreads and I have a feel for how these 2 move.
From what I'm understanding here, when the RSI is below the 30 line you are buying and when above 70 you're selling? In review of the Eur/USD with the RSI set at 70 30, 14 day period, as the RSI was under the 30 line the Euro continued to drop, so if I were long I'd lose my butt.
From what I'm understanding here, when the RSI is below the 30 line you are buying and when above 70 you're selling? In review of the Eur/USD with the RSI set at 70 30, 14 day period, as the RSI was under the 30 line the Euro continued to drop, so if I were long I'd lose my butt.
My RSI is set to (8) with 80 and 20. Yes, you will lose your butt with this system if you get caught in this situation. The RSI can stay buried, but when you are looking for 5 pips on a 1 minute against support/resistance, you can knock these out all day. Again, you must have some sort of mental stop loss if you re-enter as described above and the trade does not come back for you. I've had to get out maybe twice since January. But, I make it back quickly.
