FXCorrelator - Scalping system

cable down to 3070 at times ........GBP is flattening ...not sure how much else is in the tank now london....

Hey BP

all i do agree.....

in any timeframe all i do is look for the most volatile tradable currency pairs and patterns .........my background is in the higher TFs .......ideally Daily TF.....thats where everything i have ever shared here in this and my other forums and website blogs re Strengthmeters is most effective ........however a few years back I was working qith some very good scalpers and was persuaded to focus more on scalping again .....as I enjoy active live trading ...and daily tF trading is like watching paint dry .....

every day i now happily sacrifice a few percentage points on spreads and win rates etc to Trade live lower TFs ........

if i am on say the 1 mins ...........remember thats 1,440 times faster than the daily TF ...........thats a whole lot more trades in a year

I now have more time to trade and the volume of trades over time more than covers things .........easily

N

Look guys .....

if you are becoming more experienced in trading you will have read that higher Timeframes generally are more reliable than Trading lower timeframes .........

I am not going to go into the detail here why that happens.....but generally .......I agree .....

However if you have good solid systems and strategies you can make lower Timeframes still pay......

lets look at the hypothetical math below

2 systems :-


System A pays out on average say a net 5% Return every 10 trades

System B pays out on average a net 2% every 10 trades


which is better in real terms if you have the time to trade system B ??


Answer

lets do the math - lets assume that both systems enjoy similar number of trade signals (per 1,000 bars)

in fact we dont even have to do that ...........all we do is devide one timeframe into the other and see where the returns are now


Assume System A is on the Daily TF

System A return = 5% on daily


system B - adjusted return to Daily returns

Baseline = 2%

4 hour (x6) = 12%

1hour (X24) = 48%

15min (X96) = 188%

5min (X288) = 576%


yes but thats assuming we are robots trading 24 hours a day ..........!!!

Can you see the theoretical returns here if you put the time in .........??

I will trade 96 times more often than the daily TF on the 15m timeframe ....as a 24/7 robot

even if you said above that you now only trade 8 hours a day live ......so take results all down by 2 / 3rds

but it still proves my point i hope ....

I take a decent 5% system on the Daily .....

I dilute it to just 2% for the lower TF action and slippage etc ......

I trade the 5 min TF for just 8 hours a day live

and i would still return 576% / 3 = 192% vs the same 5% on the daily for the same period .....

convinced ? .......

I have been for years .......and yes - of course I can do both at the same time !!!


have a good day

N

usd and yen have played out real bear over last few hours ......steady buys on most currencies into the dynamic duo .....GBP was a late bull starter but has done really well coming from 3060s to 3170s so far ...100 pip move

hey all

ok nice start to week .....

GBP is bear at moment ......been selling cable from 3180s to 3160s so far

no other pairs really showing yet

ive been selling cable at times ......and buying ucad at times

main 2 pairs today

N

morning all ...

selling GBP and CAD initially early london ....into USD

all change now .......

morning ...

ok not too bad today so far

European currencies are bear ......

mainly scalping cable sells from 3080s to 3060s so far .......

sorry been tied up......generally europeans have stayed bear as i was trading earlier

cads had a good bear run today so worth buying at times

N

morning all

ok good action so far .....GBP got bull earlier .....weve also seen a drop on the Euro at times

im using yen and usd to trade against these guys

mainly buying cable from 3130s to 3150s so far

N

hey all

remember it is arguably a challenge to use indicators built for other markets in forex trading ?

also is it wise to use anything that was developed before the Forex retail platform / market materialised ?

Forex Trading for the retail market really did not develop until late 1990's ......but so many of the top 20 indicators were developed way before this ...

so why not focus on indicators developed for the forex market from late 90's to date ?

this is just a little hint / pointer .....I suspect you are all using indicators where many will fail these filters ......like RSI as for example

N

hi gang ...sorry re delay ...been tied up with some other traders coaching and trading....

initially this morning i was selling yen and usd into mainly the europeans

it was pretty tight though ...real real messy

eventually GBP dropped through the floor and ive been selling Cable ever since

nothing wrong with steady buying on EU and EJ though ...but G8 correlation is a little screwed today so far

N

ok GBP index fell to around -70 pips earlier and bounced the index Support line some 2 to 3 times ...........its reveresed back around 50% now so hopefully we may see some reselling soon

Euro and more recently Cad have been the days buys ....

USd and Yen are net bears today ......but relatively quiet ....

cable sold down to 3040s after hitting 3110s in early london session so i sold it down all the way

Cable has only just proved itself to me aas a bull from around 3070 level......its a buy but I am really really looking for some aggressive reselling in truth before we close the week

THE WEEK
overall its been a real bad week for GBP index ...its some 260 pips south of asian opens on sunday night
NZD been the best bull performer.......usd and yen very very neutral for week

N

hey guys

sloow start on london Forex session.....mondays are tricky as the weekend is still unravelling and only 1 asian session in place so far .......

anyway ive sat on my hands so far ...(unlike me ?)

yen is the alpha bear .....gbp finally emerging as the alpha bull ..........

re cable ...assume ists going bull........rebuy as long as it stays above 3070s ....

EJ buys are worth a look ..........best buy was earlier around 5.40am at 125.50s .......too early for me

anyway stay in 125.60s now for rebuys

N

excelent rebuy on EJ literally as i was posting ........125.64/5 to 125.70 so far

N,,

scalp wins on both pairs mentioned .....going well now

EJ just signalled again at 73 ......

high was 80 ...easy easy scalp meat on EJ so far today ...3 great easy scalps so far

hey all .....sorry ...been doing some training ....

ok since last post above

GBP fell back and sold off hard
USD held Bull
Yen continued its selloff (alpha Bear still)
Euro emerged as Alpha Bull

I traded based on these signals as they emerged and if you read earlier posts that meant i have stayed on the EJ buys from early london...no deviation

so been scalping it up from 126.60s to 125.80s so far

cable was a little more tricky having hit it hard bull earlier up to 3090s .....I started hunting sells in the 3070s although even that was perhaps a little ambitious (i got it though)..............cable sold off to 3040s so far

no complaints on mornings trading ...I did pretty OK

N

apologies for my relatively brief responses on so many recent Threads / subjects here at Forex Factory

this is not intended to be clever or sarcastic or any other interpretations that members choose to read into the posts

it is simply i am always short of time and try to crystallise issues into 1 or 2 bullet points that i feel will be useful to the members involved ...sometimes this is not enough i realise ....apologies

I mainly respond over the weekends and always try to allocate time to Forex Factory as it was the early forums where i introduced my Forex Strengthmeter work back in early 2000's and the owners and members have always been kind to me ...something i try to do myself for members here ........I am active on a few other forums these days plus have Youtube , Twitter and my own website and membership to manage alongside pretty much full time trading and training in the week .....

If members feel that I have not explained my thoughts enough feel free to PM me or email [email protected] or go to my website under the same name

Thanks again everyone .........
Neil
NVP
FXCorrelator.com