Attachments: M1 Countertrend Scalping Strategy

M1 Countertrend Scalping Strategy

#11,961
Aug 8, 2024 3:45am Aug 8, 2024 3:45am

niks
Joined Dec 2022 | Status: Trader | 3,228 Posts

no worries at all jackinthebox, thanks for taking the time to clear it up, i understand and appreciate it...

glad to hear you are scalping well, we are always here to help, best of luck to you!

M1 AUDUSD - and more money in the bank, that's why it's called the "safe" zone!

Attached Image (click to enlarge)

Click to Enlarge

Name: screenshot.png
Size: 23 KB

Attached Image (click to enlarge)

Click to Enlarge

Name: screenshot.png
Size: 19 KB

every minute matters!

#11,962
Aug 8, 2024 4:11am Aug 8, 2024 4:11am

JackintheBox
Joined Sep 2008 | Status: Trader | 2,275 Posts

Quoting niks

Disliked

no worries at all jackinthebox, thanks for taking the time to clear it up, i understand and appreciate it... glad to hear you are scalping well, we are always here to help, best of luck to you! M1 AUDUSD - and more money in the bank, that's why it's called the "safe" zone! {image} {image}

Ignored

Thanks. The last SHORT trade you took (pic 1) is also a trade I like to take more and more because it is a mix of counter trend and trend trading (trend on micro time).
When I saw correctly your system shows to go short in an ending uptrend still enough "air" to the downside for correction (that is the aim) and little "air" to the upside but already showing signs of turning down. I see your first entry here. I would (yet) never take such a position. To deep already down but I liked you next entrys (3,4,5). I can see you use more specific entry techniques and probably knowledge like I do. In your example above I would only have shorted once at the second high red dot hoping we don't go for a new high and if I would have shorted one more at a new high from here due to candle sticks before showing the trend could reverse here.

I see your SL is quite far in second example. Do you use SL? In your second example I would have bought all way down and selling much earlier than you. Probably wrong, haha.

#11,963
Aug 8, 2024 5:48am Aug 8, 2024 5:48am

niks
Joined Dec 2022 | Status: Trader | 3,228 Posts

you're welcome!

When I saw correctly your system shows to go short in an ending uptrend still enough "air" to the downside for correction (that is the aim) and little "air" to the upside but already showing signs of turning down.
yes, that is the textbook definition of the basic ema strategy and this thread, countertrend scalping...

I see your first entry here. I would (yet) never take such a position. To deep already down but I liked you next entrys (3,4,5).
unfortunately, what i have presented here is not a great example of the textbook definition and you are correct in your post trade analysis of my trade... i'll try to do better next time!

I can see you use more specific entry techniques and probably knowledge like I do
that's right, in this case, the two prior highs were better entry points, my entries in this case were more based on confirmation of a return to ema200...

Attached Image (click to enlarge)

Click to Enlarge

Name: screenshot.png
Size: 11 KB

the snapshot below illustrates the "safe" zone, countertrending during this period is safe, a return to all ema's can be expected...

Attached Image (click to enlarge)

Click to Enlarge

Name: screenshot.png
Size: 21 KB

In your example above I would only have shorted once at the second high red dot hoping we don't go for a new high and if I would have shorted one more at a new high from here due to candle sticks before showing the trend could reverse here.
that would of been a wise move!

I see your SL is quite far in second example. Do you use SL?
no, there is no stop loss and i do not use a stop loss...

every minute matters!

#11,964
Aug 8, 2024 5:55am Aug 8, 2024 5:55am

Frag8383
Joined Oct 2018 | Status: Trader | 499 Posts

I opened another 20 eur account after the raising 20 to 200 in 2 weeks and blowing it in a day.

The new account is already 100% up, I'm at 41 currently

This time I spread the entries like I mentioned that I was going to do but at I point I was down 50%.

What is starting to become clear is that sooner or later you have to take a loss on all the positions you take.
The difficult thing is how much of a loss 50% or 30%. I don't know.

Like I say is easy to grow the account because most times you will recover but then you will get into a trade that does not matter how spread are your entries you will get caught like on Monday. There were 8 down candles in a row on gbpusd with no retracements.

The difficult thing also is to pull the trigger on all losses because price is so beat down that you think that it has to return.

For example yesterday I know that I was just lucky. The add on were well spaced but price keep falling and that was only for 2 hour candles a third would have killed me. The price started to return and made 89% but the reality is that at some point you have to take the loss

Please give your opinion
Thanks
Kind regards

#11,965
Aug 8, 2024 6:08am Aug 8, 2024 6:08am

niks
Joined Dec 2022 | Status: Trader | 3,228 Posts

Quoting Frag8383

Disliked

What is starting to become clear is that sooner or later you have to take a loss on all the positions you take. The difficult thing is how much of a loss 50% or 30%. I don't know. The add on were well spaced but price keep falling and that was only for 2 hour candles a third would have killed me. The price started to return and made 89% but the reality is that at some point you have to take the loss Please give your opinion Thanks Kind regards

Ignored

it's great that is starting to become clear, because that is the reality!

on a live account without restrictions, it should not be about "how much of a loss" you can take, it should only be about "the right time" to take a loss which requires an advanced level of price action analysis and trading experience...

it's easy for a prop account, cut your losses before exceeding the limit by a single cent or be fired, it's that simple!!!

every minute matters!

#11,966
Aug 8, 2024 7:27am Aug 8, 2024 7:27am

PR31D
| Joined Jan 2024 | Status: Trader | 228 Posts

Quoting Frag8383

Disliked

I opened another 20 eur account after the raising 20 to 200 in 2 weeks and blowing it in a day. The new account is already 100% up, I'm at 41 currently This time I spread the... Thanks Kind regards

Ignored

For money management I had a rule for a while that I wouldnt go below the weeks starting balance but if you dont have a strong start to the week its hard to stick to. You could always set yourself X amount but its real hard to jump out and admit defeat. Worse yet is once you're out you sometimes get to watch price return to where you would of been into profit and you feel sick. Next time around you hold on longer in hope of a return and it can result in even more ill feelings. Hence why Im reading Al Brooks book, trying to get a better feel for trends and signs of them tiring. I will say Al's opened my eyes to a new way of scalping but its not a strat I can practice alongside work/market hours as it requires constant screen time which I dont have available to me.

You could try out a +SL. Open an order, once its say +8 pips in profit, slap on a +SL of 2 and your TP wherever you feel is realistic. I found more often than not that the +SL got hit but every now and again I did land a runner. Over time with the +SL it became obvious that I was missing out on a lot of profit compared to countering with several orders.

As Nik said, with a prop account, jump out before hitting the daily loss. It is as simple as that.

I'm happy to report through some light trading this week that I've managed to get the 10k prop account back to baseline. The lesson learned from the last dip is increasing lot size with subsequent orders in hope that a small pullback will get me BE is NOT A GOOD IDEA. I should of jumped out at 50% daily loss limit and tried to spot where I went wrong.

Hope everyone has a good weekend. I might post a question or two over the weekend to try get a feel for the thinking on some entries here as there are some great screenshots of trading action.

Attached Image (click to enlarge)

Click to Enlarge

Name: screenshot.png
Size: 14 KB

#11,967
Aug 8, 2024 7:33am Aug 8, 2024 7:33am

PipsArt
Joined Jul 2024 | Status: Trader | 695 Posts

Done for today.

Attached Image (click to enlarge)

Click to Enlarge

Name: image_2024-08-08_193309012.png
Size: 16 KB

#11,968
Aug 8, 2024 8:43am Aug 8, 2024 8:43am

Frag8383
Joined Oct 2018 | Status: Trader | 499 Posts

Quoting PR31D

Disliked

{quote} For money management I had a rule for a while that I wouldnt go below the weeks starting balance but if you dont have a strong start to the week its hard to stick to. You could always set yourself X amount but its real hard to jump out and admit defeat. Worse yet is once you're out you sometimes get to watch price return to where{image}

Ignored

Thanks for the reply
You mentioned to me that you have a way to deal with big trends, is with the money management mentioned above is in other ways?

Thanks
Kind regards

#11,969
Aug 8, 2024 11:46am Aug 8, 2024 11:46am

PR31D
| Joined Jan 2024 | Status: Trader | 228 Posts

Quoting Frag8383

Disliked

{quote} Thanks for the reply You mentioned to me that you have a way to deal with big trends, is with the money management mentioned above is in other ways? Thanks Kind regards

Ignored

It's a work in progress idea. My plan is on what would be my third counter order, I'll change to with trend trading and try BE with a large lot size.

#11,970
Aug 8, 2024 11:51am Aug 8, 2024 11:51am

flaynou
| Joined Jul 2024 | Status: Trader | 2 Posts

heloo do you have some reverse channel alternative for ctrader

#11,971
Aug 9, 2024 1:49am Aug 9, 2024 1:49am

niks
Joined Dec 2022 | Status: Trader | 3,228 Posts

Quoting Frag8383

Disliked

{quote} Thanks for the reply You mentioned to me that you have a way to deal with big trends, is with the money management mentioned above is in other ways? Thanks Kind regards

Ignored

you cannot avoid tough trends, you are either riding it, or are stuck in it, there is no strategy in the world that doesn't encounter losses, learning the right time to take it rather than being fixated on cutting it at a certain percentage is a better approach in my opinion...

here i have taken a loss, not because i had to, i was only 2.5% drawdown and my limit is 5%, but because i felt it was the right time to take it...

Attached Image (click to enlarge)

Click to Enlarge

Name: screenshot.png
Size: 49 KB

but i always know it will not always be the right time according to the market, that's trading!

part of knowing the right time is about being prepared and having a plan to recover the loss in quick time, that is the most important part i think, best of luck to you!

every minute matters!