Update April 9th 2014.. for the 2nd model of my scalping strategy please refer to page 31 post 609 and beyond. thx
Update April 11th 2014.. for the 3rd model, pg 35 post 689.
Scalp your way to profit day in day out.
Been trading all kinds of market for a long time as a solid producer. I’ll share one of my currency scalping.
A word from a scalper:
Scalper’s biggest asset is the ability to feel the heat and be stone cold to act upon.
.. let’s get on with it.. I am a do-er and not much of a talk-er..
-5m tf.. watch dog it the whole London session on eu/ej/gu/gj
-Two indies to plot: TMA band & MACD.. (tma 56,100,2.0.. macd 6,14,0)-Entry: Buy on the close of the first bullish narrow mac bar candle on a bearish/os tma.. and vice versa for sell. Price must clearly separate itself from the band by at least one candle, prefer to have a visible gap, and the entry point bar candle to be outside of the band as well.
-Target and Stops: looking to bank minimum of 15-20 pips and more if fall into a lucky ride. The initial hard stop at trigger time sets at 50 pips for emergency purposes.
-Order placements: 3.3 pips + spread from high/low of the entry candle for trigger and stops.
Art of the work: Risk control management.This part is your make or break, so pay mass of attention to fully understand in order to implement it correctly.. it requires developed skill based on a understanding to never be betrayed.
Here we go.. before target reach, on the first HEAT coming against your position is where risk drops to minimal.. how!!.. (listen carefully).. first closed mac bar candle against your position is where you reduce the risk to for new stop point.. once you are forced to set a tight stop against your position it’s also to be treated as an alert to exit for the least damage before SL take out. OK, at this point you evaluate where your new stop is.. if it’s 7pips and under you let the trade be to either reach the target or take out your SL unless it stalls for too long.. if the stop is more than 7 pips, then on the first attempt back to breakeven zone you will try to exit at minimal loss with no feelings attached what so ever. Got it!!.. it’s supper manual, it requires to be fast on the head and fingers which develops a skill and feel for speed and rhythm.. there will be times that this return back attempt is too strong and breaks out from entry point in favor of your position.. in such case you will allow some leniency and let it play out for a strong resume to reach your profit target, BUT anything short of that you will stick to the exit plan. Done.
This is as best as a structure I could give to go by without confusing or overloading you. Practice will make perfect. You will see me in action many many times as I trade my account live. It’s a chance to witness in full to absorb as I’ll attach a small size explorer account which will reflect my scalping trades on it. Do not count on too many live chart pictures since its fast pace.. that is why I attach explorer so I don’t have to post timely live charts, but I try in the beginning to squeeze some out on time.
Some questions you may have right of the bat..
About me?.. well, you get to know me as we go along if you really care.
How much do I make or what’s the potential?.. you’ll see and its got nothing to do with what you will make or lose. Potential depend on your skill and dedication.
MM?.. its up to you.. I recommend to risk no more than 2% of your account per trade.. but once your skill is up and strong you can risk more like I do.
Number of trades daily?.. its up to your dedication.. I watch dog the whole London session to death and trade anywhere from 5-15 trades a days. If your wishy-washy then you will get less opportunities and may create disruption.
News?.. be aware of the major red news.. but for sure do not trade AT super majors such as NFP, Rate changes and Speeches.
What about filtering? NO need for it.. plz keep all filtering ideas to yourself.. zero tolerance in this regard.
I may have missed something’s.. you could bring it up and if I feel it’s relevant I’ll answer.
Ok.. Last but not least.. I kindly ask of everyone to be respectful all around especially to your fellow traders.. be positive, active and energetic if this is your cup of tea, otherwise do me a favor and change the tune. I do not want any extra input from anyone about structure of the trading plan I have already laid out, it is what it is and will never be changed.. its proven and all other considerations, evaluation and etc, has been dealt with and calculated long ago.
I start from European open normally which is an hour before London session.
I have placed one chart just to show the looks of a basic entry and risk reduction.
Talk at you tomorrow.