Chasing few pips and intraday scalping | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

A very precise question on money, pips and Scalping 8 replies

Stop Chasing Pips! 11 replies

50 pips and over 4k in a few hours! 24 replies

Is 10-15 pips considered scalping and is it allowed? 7 replies

Poll: What is the best way to make a few pips a day?? 38 replies

Chasing few pips and intraday scalping

  • #1
  • First Post: Apr 2, 2017 1:55am Apr 2, 2017 1:55am
Hi!
I was wondering if it's bad to trade like I do, and by that I mean trying to hold really short positions and take profit at 1-2 pips. Is it a stupid thing to do ? Thanks!
Is forex rocketscience? Yes it is.
  • #2
  • Apr 2, 2017 4:34am Apr 2, 2017 4:34am
Quoting on64
Hi! I was wondering if it's bad to trade like I do, and by that I mean trying to hold really short positions and take profit at 1-2 pips. Is it a stupid thing to do ? Thanks!
Spread and commission will kill your profits
  • #3
  • Apr 2, 2017 6:07am Apr 2, 2017 6:07am
How many lots are you putting up? 1-2pips translate into barely any money at all, unless you are going in with many lots at a go..
  • #4
  • Apr 2, 2017 7:46am Apr 2, 2017 7:46am
I use 0.05 lots, the profits are minimal though, as my goal is to maintain myself into green even if we talk about 1% returns per trade
Is forex rocketscience? Yes it is.
  • #5
  • Apr 2, 2017 10:13pm Apr 2, 2017 10:13pm
Any respected broker would have you B booked or on restricted trade conditions trading like this, how do I know? Personal Experience.

I used back in the day some stupid eas from MQL5, well, they were actually very good, they caught sudden volatility for 1-10 pips and lasted less than 1 min.
However after a week or so, with whichever broker I was with as my lots got bigger too, my succession rate declined instantly, while still over on demo it consistently made profit, why? because on my live accounts I was B booked, and this is an instruction from the banks in the Brokers pool, not the broker themselves.

The reason is this. A broker makes profit from your commission per trade right. So a profitable trader is also profitable for them as you will trade more, so against belief brokers DO want you to be profitable, I certainly know now being profitable myself for many years, and I have a very close relationship with 2 brokers due to this.
Anyway, what happens when you click buy/sell your trade is sent to a pool of banks offering quotes, and your trade needs to be offset in the opposite direction using one of these banks best quotes, now if your trades are open and shut within minites, then the trade cannot be offset and then the broker/bank has to be on the other side of that trade, so let me put it this way, how long do you think a broker/bank will let you keep winning at their expense? I think you can figure that one out yourself.
  • #6
  • Apr 3, 2017 10:57am Apr 3, 2017 10:57am
Quoting deankenny21
Any respected broker would have you B booked or on restricted trade conditions trading like this, how do I know? Personal Experience. I used back in the day some stupid eas from MQL5, well, they were actually very good, they caught sudden volatility for 1-10 pips and lasted less than 1 min. However after a week or so, with whichever broker I was with as my lots got bigger too, my succession rate declined instantly, while still over on demo it consistently made profit, why? because on my live accounts I was B booked, and this is an instruction from...
Are you sure its 1-10 pips at which point a broker would put the trader under restrictions? I can understand if its 1-3 pips or something, but over 5 pips sounds unusual. I mean, high frequency traders trade for about the same amount of pips, and many respected brokers welcome high frequency traders. I am just wondering. Maybe you can shed some light on it, since you said you have several years of experience and good relationships with brokers.
  • #7
  • Apr 3, 2017 11:04am Apr 3, 2017 11:04am
Quoting themanager
{quote} Are you sure its 1-10 pips at which point a broker would put the trader under restrictions? I can understand if its 1-3 pips or something, but over 5 pips sounds unusual. I mean, high frequency traders trade for about the same amount of pips, and many respected brokers welcome high frequency traders. I am just wondering. Maybe you can shed some light on it, since you said you have several years of experience and good relationships with brokers.
It was not so much the amount of pips, more the extremely short length of time the trade was open.
  • #8
  • Edited 2:49am Apr 8, 2017 1:37am | Edited 2:49am
1-2 Pips is doable, but a retail broker's spreads will kill you. You'll always have a negative expectancy after you factor in their spreads (1-2 pips) and retail broker's spreads widen the most out of any dealer, which would stop you out of trades easier.

You'll need a direct line to the interbank market via an ECN (The abbreviation ECN stands for electronic communication network. ECN can be described as a bridge linking smaller participants in the market with tier-1 liquidity providers through an FX ECN broker.)

Large FX traders pay the least in spreads, some 0 pips. Most show Eur/Usd spreads of 0.0-0.5 With those spreads, you'll have a much much greater chance of hitting a TP of under 10 pips. You'll be able to trade in real lots and if you choose HFT, ask to set it up with the ECN.

ECN info
http://www.dailyforex.com/forex-arti...ographic/68163

Here's some ECNs
https://tickmill.com/accounts/types/ecn-pro/
https://www.vantagefx.com/forex-trading/best-spreads/
http://www.fxcc.com/spreads

Just make sure your broker is a true ECN dealer. Downfall is a larger capital requirement.. but that's the cost to play with the real IB market. Not a dealer that gravitates their prices towards customer's stops.
ForexOrderFlow.com Return This Year: 2.5%
  • #9
  • Apr 9, 2017 3:31am Apr 9, 2017 3:31am
I think taking small profits, and repeating is a perfectly viable way of trading. Granted it is not for everyone, but some can profit this way. As long as you don't have commissions, and you watch for the variable spread you should be fine.
  • #10
  • Jan 20, 2018 8:49am Jan 20, 2018 8:49am
Quoting on64
Hi! I was wondering if it's bad to trade like I do, and by that I mean trying to hold really short positions and take profit at 1-2 pips. Is it a stupid thing to do ? Thanks!
Yes, it’s not a good idea! Because, when you are using TP for 1-2 pips then what will be your SL? More than TP? It’s not a good choice, never and ever!
  • #11
  • Jan 22, 2018 11:39pm Jan 22, 2018 11:39pm
I believe taking small profits, and replicating is a perfectly viable method of trading. Granted it isn't for everybody, but a few can profit this manner.
  • #12
  • Jan 23, 2018 7:27pm Jan 23, 2018 7:27pm
Quoting Butterscotch
I believe taking small profits, and replicating is a perfectly viable method of trading. Granted it isn't for everybody, but a few can profit this manner.
spun content
  • #13
  • Jan 24, 2018 9:49am Jan 24, 2018 9:49am
If you're trading for just one or two pips you may want to consider using a robot (after testing it extensively, of course). That said, if it works for you when you trade manually I don't see why it would be bad.
  • #14
  • Jan 24, 2018 9:54am Jan 24, 2018 9:54am
Quoting on64
Hi! I was wondering if it's bad to trade like I do, and by that I mean trying to hold really short positions and take profit at 1-2 pips. Is it a stupid thing to do ? Thanks!
To be honest; it’s not a good idea! You can’t stay here for a long time with this idea!
  • #15
  • Last Post: Feb 16, 2018 12:32pm Feb 16, 2018 12:32pm
Quoting on64
Hi! I was wondering if it's bad to trade like I do, and by that I mean trying to hold really short positions and take profit at 1-2 pips. Is it a stupid thing to do ? Thanks!
Nothing wrong with that as long as you are making money. If you have good risk management policy, it is ok for chasing few pips. Trading is all about what works for you. Ask yourself are you doing this out of greed or it is your strength. If it is your trading edge, stick to it.
0 traders viewing now