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Scalping System by Machine

  • #81
  • Jun 25, 2024 4:19am Jun 25, 2024 4:19am
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  • #82
  • Jun 25, 2024 4:45am Jun 25, 2024 4:45am
Quoting MoochMooch
{image}
Bro think you mean this Vol candle
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Just an opinion. Based on research
  • #83
  • Jun 25, 2024 4:51am Jun 25, 2024 4:51am
Quoting since80808
{quote} Bro think you mean this Vol candle {image}
Yes - same thing lol.. bigger than previous etc
  • #84
  • Jun 25, 2024 5:16am Jun 25, 2024 5:16am
Quoting MachineLearn
Take away is just how accurate the TP levels have been
Quoting MachineLearn
I try to keep it as close to 1:1 as possible
Absolutely right: this is one of the great strengths of your method. That's how hedge funds are trading methods very similar to this.
  • #85
  • Jun 25, 2024 7:02am Jun 25, 2024 7:02am
ATR

CC

Threshold

EMA

Volume

BP

Bounce

Engulf

RSI
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  • #86
  • Jun 25, 2024 7:06am Jun 25, 2024 7:06am
Great contributions so far. Ill be observing Engulfing Candles, Engulfing Candles in relationship to a bounce, and the RSI
  • #87
  • Jun 25, 2024 7:12am Jun 25, 2024 7:12am
Quoting since80808
Once I ignored the RSI ob {image}
Implication is that you dont take trades when price is OS/OB?
  • #88
  • Jun 25, 2024 7:36am Jun 25, 2024 7:36am
Quoting MachineLearn
{quote} Implication is that you dont take trades when price is OS/OB?
Yes - I decided not to overfilter the system and that's the first result)))
Just an opinion. Based on research
  • #89
  • Jun 25, 2024 9:07am Jun 25, 2024 9:07am
Duly noted in Post #1: "The system should be traded manually."

On the other hand, only EA backtests can give an idea about the impact of these additional filters and the - almost limitless - combination of them.

The above two statements don't exclude each other: Ideas (filters) could be tested by an EA, and the system itself can be traded manually.
  • #90
  • Jun 25, 2024 9:18am Jun 25, 2024 9:18am
Quoting RoboSeer
Duly noted in Post #1: "The system should be traded manually." On the other hand, only EA backtests can give an idea about the impact of these additional filters and the - almost limitless - combination of them. The above two statements don't exclude each other: Ideas (filters) could be tested by an EA, and the system itself can be traded manually.
Absolutely. We could use an EA for testing purposes but live accounts in the real market you should be manually trading with this system/
  • #91
  • Jun 25, 2024 10:23am Jun 25, 2024 10:23am
working concept: ignore

Im observing a more fined turned approach to the volume increase rule.

Theres advanced indicators out there that can fulfill the same purpose of that rule but with more of a nuanced analysis.

Larger volume can often tell us multiple things, but most importantly it tells us that theres liquidity in the play at hand and confirms our alignment with larger players. However, well this is important it may be redundant with ATR and Percent candle close rule.

So using the same logic but with a different approach Im looking at the relationship between price movement and volume. Instead of just looking if the volume candle is larger, we look to see what volume is telling us in relation to the way price moved.For example, If price made a major move to the downside relative to the ATR but the volume was significantly lower than previous bars, this can imply that the bears have control of the market because the bulls are not there.

So the volume may be lower but it can actually imply the opposite of what we presumed this far.


The TradingView indicator Im using to measure this effect is called EVEREX. The more the bar is filled up, the more effort it took to move price.

people who have followed me know I am a fan of correlating volume with price movement.


Lets take a look at this example. This is a pullback after a major impulsive move to the downside broke structure.After price pulled back above the Ema it made a lovely 75 candle below the Ema within ATR on a color change, but the problem is we read the volume as insufficient because its decreased. But what EVEREX does is put context to that. Yes there may be less volume but thats because theres less bull too. As you can see price required well below the average effort to propel the candle lower. This should actually be a sign of weakness by the bulls and an opportunity for the system.

its a working concept
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  • #92
  • Jun 25, 2024 10:32am Jun 25, 2024 10:32am
Quoting since80808
{quote} Yes - I decided not to overfilter the system and that's the first result)))
But maybe we still need more filters
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Just an opinion. Based on research
  • #93
  • Jun 25, 2024 1:03pm Jun 25, 2024 1:03pm
Quoting MachineLearn
working concept: ignore I’m observing a more fined turned approach to the volume increase rule. Theres advanced indicators out there that can fulfill the same purpose of that rule but with more of a nuanced analysis. Larger volume can often tell us multiple things, but most importantly it tells us that there’s liquidity in the play at hand and confirms our alignment with larger players. However, well this is important it may be redundant with ATR and Percent candle close rule. So using the same logic but with a different approach I’m looking at...
Similar situation little bit earlier…bullish break of structure.

Red candle shows before setup shows lots of effort and no result. Then the setup bar shows the opposite, with a relatively large bar its showing price moved with little effort. Easy money!
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  • #94
  • Jun 25, 2024 2:05pm Jun 25, 2024 2:05pm
Quoting MachineLearn
We could use an EA for testing purposes but live accounts in the real market you should be manually trading with this system
Ok, I'll bite ;-)
Below is an EA that implements the basic rules from post #1 with one addition: the signal bar should be >75% but also <10% at the other wick. Without this addition it would sometimes select pinbars or other horrible bars. But no RSI filter, no engulfing bar, etc. ... yet...
Attached File(s)
File Type: ex5 yzScalpingByMachine.ex5   34 KB | 289 downloads


As often seen by scalping strategies, the execution of the trades is very important and makes a huge difference. Here is a backtest on EURUSD,M5 on Darwinex Demo:
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And here a backtest with the same settings on ICMarketsSC Demo:
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Feel free to use the EA to execute the basic rules and then manually inspect each trade to get inspiration what additional filters/conditions might work.
  • #95
  • Jun 25, 2024 2:23pm Jun 25, 2024 2:23pm
Quoting yoriz
{quote} Ok, I'll bite ;-) Below is an EA that implements the basic rules from post #1 with one addition: the signal bar should be >75% but also <10% at the other wick. Without this addition it would sometimes select pinbars or other horrible bars. But no RSI filter, no engulfing bar, etc. ... yet... {file} As often seen by scalping strategies, the execution of the trades is very important and makes a huge difference. Here is a backtest on EURUSD,M5 on Darwinex Demo: {image} And here a backtest with the same settings on ICMarketsSC Demo: {image}...
Thanks so much for your work. I know it can be timely making EAs. Whats with the big discrepancy in performance between the brokers?

This performance is obviously to be taken with a grain of salt, scalping is sensitive and I never recommended taking every single setup. With all that said Im glad it shows some semblance of profitability even if the conditions arent ideal. Just for the psychology of traders using the system.
  • #96
  • Edited Jun 26, 2024 1:11am Jun 25, 2024 3:28pm | Edited Jun 26, 2024 1:11am
Quoting MachineLearn
What’s with the big discrepancy in performance between the brokers?
That is a good question!? It is not just difference in trading cost (spread/commission) because the shape of the equity curve also looks different?! Perhaps one of the readers here on FF can also run a backtest on EURUSD,M5 with real ticks on default settings from 2023-01 to 2024-04? Curious to see what other brokers make of this!

Quoting MachineLearn
This performance is obviously to be taken with a grain of salt, scalping is sensitive and I never recommended taking every single setup. With all that said I’m glad it shows some semblance of profitability even if the conditions aren’t ideal. Just for the psychology of traders using the system.
Absolutely! Discretionary trading will always win from a dumb bot that doesn't understand the context and sentiments of the market. Consider this a tool to quickly plot trades on a chart that match the basic rules, and then manually study each trade and see how we could have prevented the loosing ones.
  • #97
  • Jun 25, 2024 4:50pm Jun 25, 2024 4:50pm
Multiple nice trade opportunities on ES (SP500 Futures) today:
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  • #98
  • Jun 25, 2024 9:10pm Jun 25, 2024 9:10pm
Quoting RoboSeer
Multiple nice trade opportunities on ES (SP500 Futures) today: {image} {image}
Nice finds, keep us posted on the performance
  • #99
  • Jun 25, 2024 9:24pm Jun 25, 2024 9:24pm
EURUSD NY SESSION RECAP

Most of the NY session was bearish bias, while price was above 20 so not many trades for the day for me. However there was one +1R trade that played out well.

Interestingly, price made a setup bar on the same bar that made a Bullish Breakout Period like yesterday. Additionally, I ignored the ATR requirement because we’re in NY session and the EVEREX volume showed easy movement to the upside with little resistance. Take profit was very accurate once again. Session ended shortly after but still a profitable day for EURUSD through my lens
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  • #100
  • Jun 25, 2024 10:23pm Jun 25, 2024 10:23pm
Quoting MachineLearn
EURUSD NY SESSION RECAP Most of the NY session was bearish bias, while price was above 20 so not many trades for the day for me. However there was one +1R trade that played out well. Interestingly, price made a setup bar on the same bar that made a Bullish Breakout Period like yesterday. Additionally, I ignored the ATR requirement because were in NY session and the EVEREX volume showed easy movement to the upside with little resistance. Take profit was very accurate once again. Session ended shortly after but still a profitable day for EURUSD through...
ML, how many pairs are you following? Just ED?
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