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M1 Countertrend Scalping Strategy

  • #10,381
  • Dec 15, 2023 4:55am Dec 15, 2023 4:55am
sanmiguell,
In my opinion, and I have watched all KoF Video's and possess his paid courses, the real fact that over 95% of Retail Traders fail to recognize and understand is - Their Account Balance and this Balance makes or breaks your trading capabilities (to open a trade or not)......

The Balance before you trade is very critical; YOU cannot trade like the KoF without a good size Balance of 1000 usd in a live account because of cost averaging technique he is using (adding to the trade positions) which makes the high to higher Drawdown (Risk to the Account Balance).

This is very important and must be accepted by the Trader early - maximum pain (Loss) per trade versus maximum pain (Loss) to the Account per Day. Only YOU can define the account risk appetite.

Watch the KoF Video's (Page 1 by Abade is a great start and then KoF Web Page for the remaining) and get to feel the Market via your account balance.
cpfleger
  • #10,382
  • Dec 15, 2023 5:40am Dec 15, 2023 5:40am
Abade,

Can you please clarify how you use the volume with MA? If volume is below the 20 MA then you consider that price is going back towards the 200 EMA, is this correct?
  • #10,383
  • Dec 15, 2023 5:44am Dec 15, 2023 5:44am
M1 XAUUSD
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every minute matters!
  • #10,384
  • Dec 15, 2023 7:55am Dec 15, 2023 7:55am
M1 XAUUSD
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every minute matters!
  • #10,385
  • Dec 15, 2023 8:15am Dec 15, 2023 8:15am
thanks sanmiguell, a brave heart is mandatory!

no trader is perfect and no strategy should have that expectation...

small lot size relative to account size is the best way to accommodate a drawdown, hedging is another way - maintaining margin requires capital, the lower the leverage, the higher the capital required - avoid over trading, take your time and always use the same lot size, you will need LOTS of practice and experience to start feeling comfortable...

this is a VERY high risk strategy and should be treated that way... best of luck to you!
every minute matters!
  • #10,386
  • Edited 12:39pm Dec 15, 2023 11:52am | Edited 12:39pm
Quoting sanmiguell
{quote} You guys, not only niks and cpfleger, are doing a great job here! I'm trying to emulate your skills. But I think the system isn't enough without great confidence and braveness as it shown in this picture. Even with some DD, even if the system (of course) is not perfect, you can win anyway. I like this way of trading. Can you spend two words about...
sanmiguell ,

Countertrend trading is very risky, you've got to learn how to identify though trends, this is the single most important thing !
In my opinion, there is no definitive answer to your questions, you'll figure it out by making mistakes ! Maybe the best way is to improve timing which is totally dependent on price action.
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I haven't come this far to only come this far !
  • #10,387
  • Edited 1:13pm Dec 15, 2023 1:02pm | Edited 1:13pm
Quoting lorecavoli
Abade, Can you please clarify how you use the volume with MA? If volume is below the 20 MA then you consider that price is going back towards the 200 EMA, is this correct?
Tick Volume is correlated to the instrument's volatility and is non-directional in nature. In other words, it cannot tell you whether price will move towards OR away from the EMAs by itself, but it can tell you IF price is likely to take a break, bounce or prepare a new market structure transition at that moment in time by using it in conjunction with price action and market structure (it is a timing tool).

You can:

1) "Zoom in" and read the most recent volume action using the 20 MA as a reference point. For example: A relatively strong move in the short term with good volume above the 20 MA, followed by weakening volume next to support OR resistance inside a wide range or weak trend makes a good entry point in the short term:

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2) "Zoom out" and read a larger chunk of the market:

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In such cases longer term volume readings can save you from a strong breakout.

Remember that price is always transitioning between consolidation and trendig states, that's why I'd rather wait until prices touches the slower EMAs for a new countertrend entry, after that you can "zoom in" and use volume weakening as a timing tool along with price action (candle by candle readings) and market structure (support, resistance and context), don't use volume in isolation.

Hope this helps!
  • #10,388
  • Dec 15, 2023 2:03pm Dec 15, 2023 2:03pm
Quoting lorecavoli
Abade, Can you please clarify how you use the volume with MA? If volume is below the 20 MA then you consider that price is going back towards the 200 EMA, is this correct?
A more recent example using tick volume to time a countertrend entry (silver):

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Exiting at the 50 EMA is also a good option because there is a strong resistance level nearby

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What "strong" or "weak" means depends on your personal experience and intuition with the instrument, it's just like learning to ride a bike.
  • #10,389
  • Dec 15, 2023 3:05pm Dec 15, 2023 3:05pm
Quoting cpfleger
sanmiguell, In my opinion, and I have watched all KoF Video's and possess his paid courses, the real fact that over 95% of Retail Traders fail to recognize and understand is - Their Account Balance and this Balance makes or breaks your trading capabilities (to open a trade or not)...... The Balance before you trade is very critical; YOU cannot trade like the KoF without a good size Balance of 1000 usd in a live account because of cost averaging technique he is using (adding to the trade positions) which makes the high to higher Drawdown (Risk to...
thanks for your answer
  • #10,390
  • Dec 15, 2023 3:06pm Dec 15, 2023 3:06pm
Quoting niks
thanks sanmiguell, a brave heart is mandatory! no trader is perfect and no strategy should have that expectation... small lot size relative to account size is the best way to accommodate a drawdown, hedging is another way - maintaining margin requires capital, the lower the leverage, the higher the capital required - avoid over trading, take your time and always use the same lot size, you will need LOTS of practice and experience to start feeling comfortable... this is a VERY high risk strategy and should be treated that way... best of luck to you!...
thanks buddy
  • #10,391
  • Dec 15, 2023 3:06pm Dec 15, 2023 3:06pm
Quoting Amiraven
{quote} sanmiguell , Countertrend trading is very risky, you've got to learn how to identify though trends, this is the single most important thing ! In my opinion, there is no definitive answer to your questions, you'll figure it out by making mistakes ! Maybe the best way is to improve timing which is totally dependent on price action. {image}
thank you my friend
  • #10,392
  • Dec 15, 2023 8:14pm Dec 15, 2023 8:14pm
Need another 2.2% to pass my prop firm challenge and advance to phase 2.
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  • #10,393
  • Dec 15, 2023 8:29pm Dec 15, 2023 8:29pm
M1 BTCUSD
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every minute matters!
  • #10,394
  • Dec 15, 2023 9:01pm Dec 15, 2023 9:01pm
M1 BTCUSD
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every minute matters!
  • #10,395
  • Dec 16, 2023 6:23am Dec 16, 2023 6:23am
M1 BTCUSD
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every minute matters!
  • #10,396
  • Dec 16, 2023 7:20am Dec 16, 2023 7:20am
M1 BTCUSD
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every minute matters!
  • #10,397
  • Dec 16, 2023 10:43am Dec 16, 2023 10:43am
Quoting CM-PunkFX
Need another 2.2% to pass my prop firm challenge and advance to phase 2. {image}
@CM-PunkFX Well done! wish you the best for this challenge
  • #10,398
  • Dec 16, 2023 5:23pm Dec 16, 2023 5:23pm
Quoting Abade
{quote} @CM-PunkFX Well done! wish you the best for this challenge
Thank you Abade…. I’m not sure if I can do it yet… 2.2% for phase 1 but still a phase 2 after that. I’m trying to stay confident as I have failed twice in the pass. But each time was due to staying in positions for too long, scalping sometimes should be get in a trade and try to get out as soon as your in good profit. Was too greedy in the pass and tried to hold for more profit. Scalping on the 1 min offers plenty of opportunities to trade so if your in good profit you should take it…. Unless you’re quite experienced and know the markets well… only then should you hold for maximum profits. Thanks for creating this discussion thread Abade it’s good to share ideas.
  • #10,399
  • Dec 16, 2023 6:48pm Dec 16, 2023 6:48pm
M1 BTCUSD
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every minute matters!
  • #10,400
  • Dec 16, 2023 8:07pm Dec 16, 2023 8:07pm
Quoting CM-PunkFX
{quote} Thank you Abade…. I’m not sure if I can do it yet… 2.2% for phase 1 but still a phase 2 after that. I’m trying to stay confident as I have failed twice in the pass. But each time was due to staying in positions for too long, scalping sometimes should be get in a trade and try to get out as soon as your in good profit. Was too greedy in the pass and tried to hold for more profit. Scalping on the 1 min offers plenty of opportunities to trade so if your in good profit you should take it…. Unless you’re quite experienced and know the markets...
it's a great way to gain experience by challenging yourself cm-punkfx, and it looks like you are doing very well so far - your mindset during the challenge is critical so i just wanted to reframe you first sentence in your response above to reflect a more positive outlook!

"I’m not sure if I can do it yet… 2.2% for phase 1 but still a phase 2 after that. I’m trying to stay confident as I have failed twice in the pass."

" i can do it, still a long way to go - i remain confident after learning valuable lessons from past mistakes and am currently on track to succeed this time - i WILL get better as i gain more experience! ... "

best of luck!
every minute matters!
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