is this a ridiculous idea ? maybe i'm losing my mind ! | Forex Factory

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is this a ridiculous idea ? maybe i'm losing my mind !

  • #1
  • First Post: Sep 30, 2007 5:50am Sep 30, 2007 5:50am
i've thought of this all of a sudden but it seems so simple that i don't think it'll work........

1) at close of the day, if a pair is trading up/down especially in the last hour, place limit/market order to gain 5 pips in that direction.

2) place big money on those 5 pips since no time to place orders for multiple pairs

3) i think aiming for just 5 pips should be okay without stoploss ? or maybe SL at your discretion.

4) maybe place buy and sell orders to gain 10 pips ?

so the idea is for market to move just a little bit in your favour. or am i just crazy..............:
  • #2
  • Sep 30, 2007 6:19am Sep 30, 2007 6:19am
Quoting findcount
i've thought of this all of a sudden but it seems so simple that i don't think it'll work........

1) at close of the day, if a pair is trading up/down especially in the last hour, place limit/market order to gain 5 pips in that direction.

2) place big money on those 5 pips since no time to place orders for multiple pairs

3) i think aiming for just 5 pips should be okay without stoploss ? or maybe SL at your discretion.

4) maybe place buy and sell orders to gain 10 pips ?

so the idea is for market to move just a little bit in your favour. or am i just crazy..............:
I didn't get it - what difference does the "close of the day" timing make at all?

You seem to hunt for 5-10 pips, why do you think it should be any easier at close of the day?
  • #3
  • Sep 30, 2007 11:49am Sep 30, 2007 11:49am
I dont think that is a good idea findcount. You could be setting yourself up to fail. If the spread of your broker is 3 pips for the pair u are trading, you will need the market to move 8 pips just to earn 5. It may work well for a while, but there will inevitably come a time when one move against you could seriously hurt. A discretionary stop would probably mean your win ratio needs to be very high to break even. It may be better to work with a scalping strategy if you want to trade very small time frames. Just my 2 pips..

Pete
  • #4
  • Oct 1, 2007 6:08am Oct 1, 2007 6:08am
Quoting SomedayIwill
I didn't get it - what difference does the "close of the day" timing make at all?

You seem to hunt for 5-10 pips, why do you think it should be any easier at close of the day?

i guess the open of the european or london session might do too......

i'm with Oanda so can't buy and sell the same currency pair..........

i think it might work with volatile pairs like gbp/usd and gbp/jpy but less volatile pairs like eur/chf might work too with a spread of just 1 pip......
  • #5
  • Oct 1, 2007 6:28am Oct 1, 2007 6:28am
Crazy idea, won't work...

Some guy had a similar idea (in spirit), it ended in tears:

http://www.forexfactory.com/showpost...27&postcount=1

http://www.forexfactory.com/showpost...5&postcount=71

Best of luck
  • #6
  • Oct 1, 2007 6:34am Oct 1, 2007 6:34am
Quoting findcount
i guess the open of the european or london session might do too......

i'm with Oanda so can't buy and sell the same currency pair..........

i think it might work with volatile pairs like gbp/usd and gbp/jpy but less volatile pairs like eur/chf might work too with a spread of just 1 pip......
if you want to buy and sell the same pair you would have to open a sub account with oanda...buy in one acct. and sell in the other acct.
however what you are suggesting in your first post is not a practicle strtegy.....
Same Whore .... Different Dress
  • #7
  • Oct 1, 2007 7:05am Oct 1, 2007 7:05am
Quoting johnedoe
if you want to buy and sell the same pair you would have to open a sub account with oanda...buy in one acct. and sell in the other acct.
however what you are suggesting in your first post is not a practicle strtegy.....
That's true, you can create one or more sub account with Oanda. I'm not sure and haven't read if they allow this from Terms & Conditions or etc. but I'm pretty sure why not? I guess that's one of the reasons why they have option to create sub account(s), I haven't never had one although. Only demo trading.
  • #8
  • Oct 1, 2007 9:12am Oct 1, 2007 9:12am
Quoting findcount
i've thought of this all of a sudden but it seems so simple that i don't think it'll work........

1) at close of the day, if a pair is trading up/down especially in the last hour, place limit/market order to gain 5 pips in that direction.

2) place big money on those 5 pips since no time to place orders for multiple pairs

3) i think aiming for just 5 pips should be okay without stoploss ? or maybe SL at your discretion.

4) maybe place buy and sell orders to gain 10 pips ?

so the idea is for market to move just a little bit in your favour. or am i just crazy..............:

You are talking about making a scalp in a sideway market.

There is nothing new in it.

But you must know it is very hard to do.

I am doing it several times a day while I monitor my big position.

If you are really wont I can give you some ground rolls and references.

  • #9
  • Oct 1, 2007 12:51pm Oct 1, 2007 12:51pm
Quoting findcount
i guess the open of the european or london session might do too......

i'm with Oanda so can't buy and sell the same currency pair..........

i think it might work with volatile pairs like gbp/usd and gbp/jpy but less volatile pairs like eur/chf might work too with a spread of just 1 pip......
Click the account tab, scroll down to "create sub account"

You can now trade long on primary, and short on the sub.
  • #10
  • Oct 2, 2007 3:31am Oct 2, 2007 3:31am
Double check with hourly, daily chart. if indicators do support that. then go for big. other then that. I will not risk my money for it.
  • #11
  • Oct 2, 2007 3:37am Oct 2, 2007 3:37am
Quoting peterM
If the spread of your broker is 3 pips for the pair u are trading, you will need the market to move 8 pips just to earn 5.
Pete
This statement is VERY TRUE. Think of it as of costs. Paying 3 pips to gain 5 is too much, especially when I see you writing about not using SL. If the market moves 12 pips in one second AGAINST you? What then? I´m not trying to discourage you, cause at the end of the day it is YOU who decide, but think about it twice. Big money on 5 pips and not using SL...

Happy Trading

Bluefish
  • #12
  • Oct 2, 2007 3:50am Oct 2, 2007 3:50am
Open a demo/game account. Oanda would do. Test it for a half a year. Incorporate further ideas to perfect it. Thats it. If it works, works if not not. Start again. Modify, change, test until you find the thing the works for you.

Regards
.
  • #13
  • Oct 2, 2007 3:56am Oct 2, 2007 3:56am
the market wants to give you thousands of pips..yet you wanna just aim for 5 or 10? why?
  • #14
  • Oct 2, 2007 4:29am Oct 2, 2007 4:29am
yeab - there goes the mind.
  • #15
  • Oct 2, 2007 4:42am Oct 2, 2007 4:42am
Some has a huge stomach, some has a small stomach... But it is better to concentrate to not have huge DDs and to avoid losses... Profits will come with it IMHO
.
  • #16
  • Oct 2, 2007 4:59am Oct 2, 2007 4:59am
Quoting findcount
i've thought of this all of a sudden but it seems so simple that i don't think it'll work........

*****and so on and so on*****

so the idea is for market to move just a little bit in your favour. or am i just crazy..............:
Sorry, but I must say....Yes, you're crazy.... That will blown up your account immediatelly.....:surprised
  • #17
  • Oct 2, 2007 5:01am Oct 2, 2007 5:01am
Quoting cirebonese
Sorry, but I must say....Yes, you're crazy.... That will blown up your account immediatelly.....:surprised
it won't
.
  • #18
  • Oct 2, 2007 5:02am Oct 2, 2007 5:02am
Quoting cirebonese
Sorry, but I must say....Yes, you're crazy.... That will blown up your account immediatelly.....:surprised
can you support with statistical caculations/experiments your statement???
.
  • #19
  • Oct 2, 2007 5:58am Oct 2, 2007 5:58am
Quoting traderight

You are talking about making a scalp in a sideway market.


There is nothing new in it.


But you must know it is very hard to do.


I am doing it several times a day while I monitor my big position.


If you are really wont I can give you some ground rolls and references.


really appreciate any help you can give me, many thanks in advance.
  • #20
  • Oct 2, 2007 6:11am Oct 2, 2007 6:11am
Quoting bullrock
Open a demo/game account. Oanda would do. Test it for a half a year. Incorporate further ideas to perfect it. Thats it. If it works, works if not not. Start again. Modify, change, test until you find the thing the works for you.

Regards

A BIG THANK YOU for ALL who responded and the warnings too......

i guess it's very very difficult to buy and sell at approx. same time as the pair will be moving all the time........silly me........

WAIT A MINUTE..........

what if i place buy and sell orders ( based on both Ask and Bid prices ) for multiple pairs at Friday's close so when Monday opens, a total of 4 orders will take profit for each pair ?

so just 5 pips movement above and below both Ask and Bid prices as the spread for Monday open will be very large.........

or is this an even crazier idea ???
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