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Part Time Wealth Building Trading System - Daily Scalping

  • #1,721
  • Jun 8, 2007 6:10pm Jun 8, 2007 6:10pm
Quoting Al_Have1
Hello Scrat. I haven't seen you in the TK forum for some time. The rules haven't changed. However, a lot of us have personalized it. From page 1:

Daily trading rule are as follows:

1. Create daily chart on any pair (GY ONLY)

1a. YOU MAY NOT WANT TO TRADE (OR LIMIT YOUR EXPOSURE) IF IT IS RANGING INSIDE THE RIBBON I DESCRIBED IN A PREVIOUS POST

2. Enter Buy/Sell order upon Sunday or Monday open at 2400 GMT (or 23:00). Order should be consistent with previous days trend (i.e; Previous day up, Place "Buy" market order, Previous day down, enter "Sell" market order at open) OR WAIT UNTIL IT HITS THE 24 SMA ON H1

2. Place opposite side trade 40 PIPS aways from initial market order (i.e.; if initial order was a Buy Place immediate Sell side order 40 PIP away from initial market entry) (+SPREAD)

3. If same trend for three consecutive days, place next days open order opposite of previous three days trend. i.e; If Monday, Tuesday and Wednesday were up days, Thursday would be a Sell order. OR IGNORE THIS RULE

4. Use 40 PIP stops on all orders. (+SPREAD)

5. Close between 2300 and 2400. OR IF +40 PIPS, CARRYOVER TO NEXT DAY AND OPEN A NEW ORDER (DOUBLE DOWN). MOVE SL ON CARRYOVER TO NEW SL. There is no reason to close if you ignore #3.

6. Repeat trade rules at 2400 GMT. (OR 23:00)

7. YOU MAY WANT TO TP. SOME TAKE HALF AT +60 & LET THE REST RIDE. SOME TAKE ALL AT +100 OR +120...OR NOT...

8. CONSIDER MAX TRADES PER DAY=2

It has become less mechanical.


Nice summary.
"Those who see Invisible can do Impossible." -Rev. Dadaji
  • #1,722
  • Jun 9, 2007 3:09am Jun 9, 2007 3:09am
very nice summary indeed. some people trade at 21GMT though not only 23 or 24GMT.....
  • #1,723
  • Jun 10, 2007 1:03am Jun 10, 2007 1:03am
Daily trading rule are as follows:

1. Create daily chart on any pair (GY ONLY)

hello Al, what's GY only? you mean it can only apply to GBP/JPY?

thanks advance
  • #1,724
  • Jun 10, 2007 5:01pm Jun 10, 2007 5:01pm
Quoting pattyliu
what's GY only? you mean it can only apply to GBP/JPY?

thanks advance

Yes, due to the volatility.

Although, a strong trending pair will also work, ie USD/CAD from the 116 mark
  • #1,725
  • Jun 11, 2007 9:26am Jun 11, 2007 9:26am
thanks, blackinc for the assitances!

IF IT IS RANGING INSIDE THE RIBBON I DESCRIBED IN A PREVIOUS POST

where is the post for "RIBBON"? i went back for a few pages but could not find. thanks a lot!
  • #1,726
  • Edited 10:13am Jun 11, 2007 9:40am | Edited 10:13am
Quoting pattyliu
Daily trading rule are as follows:

1. Create daily chart on any pair (GY ONLY)

hello Al, what's GY only? you mean it can only apply to GBP/JPY?

thanks advance
Yeah - I would have notated it as G/J, but it worked for me too.

Also with some 'personalization' [search 'find all posts by' me to find easier] I have had good success with G/U [GBP/USD] over the past month [5/13-6/8] up 526 pips where many others have been mentioning losses on the pair.

Quoting pattyliu
IF IT IS RANGING INSIDE THE RIBBON I DESCRIBED IN A PREVIOUS POST

I had to ask too - put a 25 day Moving Average on the Daily chart of the Pair - add a +150 and a -150 line to it as well, creating a ribbon. Not a definate 'no trade' just a possible indicator as to trending pattern [try it on USD/CAD for a good visual - you have to go back to Jan to see it 'inside' the ribbon.
Spinnaker Learning....
  • #1,727
  • Edited 1:59pm Jun 11, 2007 1:12pm | Edited 1:59pm
Quoting pattyliu
thanks, blackinc for the assitances!

IF IT IS RANGING INSIDE THE RIBBON I DESCRIBED IN A PREVIOUS POST

where is the post for "RIBBON"? i went back for a few pages but could not find. thanks a lot!
http://www.forexfactory.com/showpost...postcount=1630

and yes, GY=GJ=G/J=G/Y=GBP/JPY=Guppy=Sterling/Yen=Pound/Yen=G/U x U/Y. Sorry, for my typo.
  • #1,728
  • Jun 11, 2007 4:39pm Jun 11, 2007 4:39pm
This is probably a stupid question but do you other traders of this system allow for the spread in your stops and targets? My charting platform displays the offer price (sell) so should I be adding the spread to my stop loss and target figures?
  • #1,729
  • Jun 11, 2007 5:35pm Jun 11, 2007 5:35pm
after i read the rules again, i think that opening at the very beginning of the day may not be a good decision. if we're talking about daily scalping, i think we should use daily as well as h4/h1 charts (i prefer h4).
now, look at the previous week trend. is it down? then look to sell on a small spike up. is it up? then look to buy on a small dip. you can do this on a h1 chart, but it will give you some fake signals.

let me give you an example, on previous week:
1. let's assume you entered a trade on red line. your SL should be above blue line 1.
2. as price goes down, observe the first subtrend going up; blue line 2 marks the top of this subtrend.
3. price continues to go down; you move your SL to blue line 2.
4. then, another subtrend: blue line 3 marks the top of this second subtrend. again, move your SL here.
5. a nice drop to 237.7 area, followed by another subtrend going up to blue line 4; move your SL again.

and so on. look at the trend, wait for a subtrend to form and then enter and set your SL above the previous high. i don't know how i can explain this better, that's why i posted the chart.

a rough estimate for the profit, if you closed at blue line 4: 242.50 - 240.10 = 240 pips.
i closed at 238.35 (it was a vegas level for daily chart) so i got 415 pips on g-j last week.
Attached Image (click to enlarge)
Click to Enlarge Name: g-j.jpg Size: 47 KB
Nihil Sine Deo.
  • #1,730
  • Jun 11, 2007 5:40pm Jun 11, 2007 5:40pm
by the way, in this case if price goes above 240.20 i will consider a long position.
Nihil Sine Deo.
  • #1,731
  • Jun 11, 2007 5:52pm Jun 11, 2007 5:52pm
and another thing:
look at previous week open, 241.89, and then look at how price went: first up to 242.98, then down below the week open (!) - and this is a sign that the high of the week might have been already hit, so you can look at a weekly average and have a general idea about a possible low of the week.
let take this week as an example:
- open: 239.77. so far price went up to 239.96, so look for a move below 239.77 and try to project a possible target for this week. let's say 239.96 WOULD BE the high of this week (i don't know that, but let's assume)
- g-j has a weekly range of about 400 pips, so you can expect a target around 235.96 IF price doesn't go above 239.96.
hope that helped.
Nihil Sine Deo.
  • #1,732
  • Jun 11, 2007 5:55pm Jun 11, 2007 5:55pm
i forgot to add the indicator i'm using for weekly range. here it is.
p.s. i apologize if i already posted it ... my memory looks exhausted these days...
Attached File(s)
File Type: mq4 (TSR) Weekly Range.mq4   15 KB | 445 downloads
Nihil Sine Deo.
  • #1,733
  • Jun 11, 2007 6:32pm Jun 11, 2007 6:32pm
Today's result: (11th June 2007)

GBP/USD: -27 pips (Short trade closed.)

Net result of the JUne so far=+206 pips

MQ
"Those who see Invisible can do Impossible." -Rev. Dadaji
  • #1,734
  • Jun 11, 2007 6:47pm Jun 11, 2007 6:47pm
Quoting edge540
This is probably a stupid question but do you other traders of this system allow for the spread in your stops and targets? My charting platform displays the offer price (sell) so should I be adding the spread to my stop loss and target figures?
That is not a stupid question at all and is challenging to master. MT4 displays the bid price not the offer. You may want to double check.

Your sell order hits the bid price. Your buy order hits the offer. My chart shows bid, so I add the spread to my buy orders only. For example: I want to buy at support at 241.00 on my chart, I will put an order in at 241.07. If I want to sell at resistance at 242.00, I put an order in at 242.00.

Same goes for SL & TP. If they buy (you are short), then add the spread to get the place on the chart you want.


SCRAT: GREAT INFO!
  • #1,735
  • Jun 11, 2007 9:25pm Jun 11, 2007 9:25pm
let's see if it works. basically it should function with every time frame, so i'm trying to see if i can do the same with an h4 bar average. but the higher the time frame, the more reliable this analysis.
right now i'm looking at g-u, looks like the low of the month should be around 1.9565-1.9465. let's see.

Quoting Al_Have1
SCRAT: GREAT INFO!
Nihil Sine Deo.
  • #1,736
  • Jun 11, 2007 9:48pm Jun 11, 2007 9:48pm
Thanks for that,when I first started trading I thought I was being duped by my broker as on my charts SL's were not being hit but on my trading platform they were.
Good info from "Scrat", I look at 5min charts to get a general trend for the last 5-9 hrs of the day and if the daily bar is in agreement I take a trade.I got stopped out yeasterday on the G/Y but didn't reverse the trade as I found in the last month that more often than not the reverse trade is a loser as well.
  • #1,737
  • Jun 11, 2007 9:56pm Jun 11, 2007 9:56pm
Quoting Scrat
let's see if it works. basically it should function with every time frame, so i'm trying to see if i can do the same with an h4 bar average. but the higher the time frame, the more reliable this analysis.
right now i'm looking at g-u, looks like the low of the month should be around 1.9565-1.9465. let's see.
Would you please be a little more specific on your exit strategy. If I'm reading this right, you are using vegas and/or 100% of the previous week's range as a hi (or low) of current week to exit as a TP? (if not stopped out or reversed)

Also, do you reverse mid-week if you are stopped at one of your levels?
  • #1,738
  • Jun 11, 2007 11:09pm Jun 11, 2007 11:09pm
i don't have a precise exit strategy. what i suggested was basically this: don't enter at the beginning of the week, but let the price run into a certain direction. then wait until it comes back and open the trade after it passed the weekly open. use the previous high/low to project a possible target for the week OR look for a specific entry using a vegas h4 level.

example 1: last week on E-U
- open: 1.3438
- let the trade run; it went up to 1.3552, then it came down: 1.3552 seemed to be the high of the week
- open a short trade @ 1.3437
*weekly range on e-u is 172, so when you subtract this from 1.3552 you get 1.3380
- conclusion: your short from 1.3437 should close at 1.3380 - a total profit of 57 pips.

example 2: last week on G-U
- open: 1.9819
- let the price run; it went up to 1.9942, then it came down: 1.9942 seemed to be the high of the week
- open a short trade @ 1.9818
*weekly range on e-u is 264, so when you subtract this from 1.9942 you get 1.9678
- conclusion: your short from 1.9818 should close at 1.9678 - a total profit of 140 pips.

if you want more precise entry/exit points, use vegas h4 indicator.
now, the principle of this method assumes that price does not reverse more than once, which is not necessarily true; g-j, for instance, can reverse many times during a week - and when ranging, it's even worse.


Quoting Al_Have1
Would you please be a little more specific on your exit strategy. If I'm reading this right, you are using vegas and/or 100% of the previous week's range as a hi (or low) of current week to exit as a TP? (if not stopped out or reversed)

Also, do you reverse mid-week if you are stopped at one of your levels?
Nihil Sine Deo.
  • #1,739
  • Jun 12, 2007 1:31am Jun 12, 2007 1:31am
sorry, it's confused little me again....are we talking about DAILY or WEEKLY right now with this new approach? sounded like weekly to me. or am i just losing it.
anyway, last week and this week so far has been good to me. i'm hoping it'll stay that way ;-p
  • #1,740
  • Jun 12, 2007 4:15am Jun 12, 2007 4:15am
he may have been thinking of the weekly, but in effect Scrat has come up with his own cool little swing strategy working on 'swing points' (or whatever others like to call them).

nice idea... works on price action and weekly ranges... simple, tick, effective, let's have a look!
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