Linuxtroll Simple Scalping

Quoting kermut

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Though i am not using the rainbow exclusively atm for scalping (still practicing, hoping to get there some day soon), I am still trading for small targets. I am using oanda for a variety of reasons. I also have a small mbt account, and usually have it open with mbt level 2 displayed for the pair I am trading at the time.

i would like to share my experience with you, in the hope that it will help someone with their quest for which/what kind of broker to use.

I was short GJ last friday, and took several trades. What I noticed that oanda's price was consistently 1-2 pips behind mtb's price, always against my direction. There were several times when the price on level 2 would go down abt 5-8 pips, but oanda's would not move. If the price stayed there on mbt, the price on oanda would just jump down 3-5 pips in one go. It almost seemed like oanda was waiting to see if the price came back up, to where they were holding the price.

I can not say for sure that oanda does this as a rule, ie skew prices against the direction of the trader, and only move price when the market doesn't show any sign of coming back.

As scalpers, we want to be in and out as soon as we can. So, if the price traded at our tp level, we want to be out, not waiting to see if the broker(market maker), will give us that price.

This just re-enforce's LT's statement abt trading on ecn. Trading with a market maker for scalping is definitely increasing risk, and as traders we are constantly trying to minimise risk.

Hope this helps someone.

Regards,
K.

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Quoting kermut

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Billy truely knows the value of a pip, fxforce.

Mbt, or efx (same difference), have the advantage of being able to trade on ecn for a much smaller amt than conventional ecn eg cnx. To gain something, we have to give up something - to have the ability to trade on ecn for small $ amts, we have to be willing to pay a higher commision. That is the mantra of mbt/efx. Though I am not able to afford to trade on cnx atm, I do find paying 2 pips for a round turn trade a robbery. When at cnx, u can get commissions for around 0.8 pips in and out.

I used mbt for small pip profit, high frequency trades some time ago, doing an experiment of seeing how far I could take $500 with strict discipline and only shooting for 6-8 pips per trade. I made over 300 pips in 3 weeks, but strangely, my $ value increase was not reflective of pip gains. Guess what?? My commissions ended up being nearly 40% of my pip gains!!! Add up 2pips per trade over several trades, over a month, and it starts to become huge!!!

So, to answer bruno's question, it is really being stuck between a hard and rock place. For the present moment, I continue to use oanda, as it serves my purpose for flexibility of trading size, and moving/setting tp/sl levels off the charts. But, can't wait to build up enough capital to trade on cnx. I beleive there are some brokers that offer cnx with 10K, but the liquidity is not that good, plus you still need to trade the standard contract size, or even 250K trade size. That is more leverage than I am comfortable with. So, we build capital slowly.

Regards,
K.

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Quoting THE FxORCE

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Kermut,
Excellent post. Very well said.
Scalpers need frequent price updates. That is why scalping MT4 is very hard. If you find a broker that has tight spreads and fast pricing updates you will do much better. With this type of broker getting in short at Offer is much easier.
Not all Currenex is the same. If you go to a small Currnex hub you won't get rapid price updates. If you go to large hub you will. However I think it should be noted that EFX spreads are as good as you'll find on most Currenex.

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Quoting GirlFlyer

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Comments suggestions?

GirlFlyer

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Quoting FXSurfer

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To any new visitors to the thread:

Here's a screen shot of a setup that
you can use to join us in practicing
and trading LT's scalping method.
OANDA demo for 5 sec. chart and
EXF demo for prices and trading.
The only variation is that on my chart
I have candles crunched together to
show S/R areas instead of the recommended
average price line ( ).

I see lots of curious people peeping in here
all of the time at the bottom of the page.
Join us! Welcome!


FXS

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Quoting Bruno

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Not all Currenex is the same. If you go to a small Currnex hub you won't get rapid price updates. If you go to large hub you will. However I think it should be noted that EFX spreads are as good as you'll find on most Currenex.
....................................................................................................................
Can somebody please explain how does this work, I am little confused from different hubs??? What is the cost with Currenex compare to EFX?

Many thanks Bruno

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Quoting linuxtroll

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Average price line (=WMA1) will clearly give you the S/R area...

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Quoting THE FxORCE

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Bruno,
Currenex is simply a software as LT has posted.
Typical fees are $25/US Mio traded. This means if you buy 1mio then sell 1mio to offset the position you are paying $50 commissions. If you trade a GBPXXX pair you'll pay double as the GBP trades double the US dollar right now. So your cost per mio will be $50 roughly.
I think EFX is kind of expensive but their spreads are very good. You might also be able to negotiate them down like any other broker. Frequent price updates are very important for scalping.

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Quoting Bruno

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Many thanks for explanation. Now it is clear.

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Quoting bisar_x

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linux, you said that u take 90% of the trades with the trend. How do u define the trend, i mean what TF use to define the trend?
Thanks

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Quoting Carllos

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5 min

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Quoting linuxtroll

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Try Williams %R...

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