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Linuxtroll Simple Scalping

  • #1,241
  • Sep 11, 2007 7:58am Sep 11, 2007 7:58am
Quoting linuxtroll
Jeg bodde mange år i Norge...

mvh,
Å, jøss...så kult!!!
Pas a pas, se va luènh
  • #1,242
  • Sep 11, 2007 8:02am Sep 11, 2007 8:02am
Quoting Bruno
Hi FxSurfer,

this is actually great point, I spend last week some time to prepare excel spreadsheet with these comm. calculations to make clear why I am not able to grow my account. If I checked back how many trades I made and how much commission I paid.... It is only one way how to succeed - less trades, maybe only 1-3/day and wait for the best setup, otherwise it will kill us...

Just check this table below and you will see how much from your account can you loose if one bad -10pips trade comes...

We need more screen time and persistence.
Have a great trades

Example: Approx. calculation 5pips gain is brutto $261.84, nett $180, 1.8% account grow...10pips loss cost you with $10K account and 60% investment approx. $521...:surprised
Attachment
This is exact why I decided to not do live account before I see that I master the rainbow enough to get a good result.

Yesterday I got the feeling I start to see the pattern, but I know that I need to see that pattern over and over again to be sure when I am seeing it. Hence demoing is very smart.

I also saw why LinuxTroll like the 5 seconds chart because thats where I saw that pattern. Finally I got why he is saying the 5 second charts has the key/clue.

I just need to see it several times to confirm for myself that this is THE pattern before I post printscreens (I dont like to post about things I have no empirical observation about, lol).
Pas a pas, se va luènh
  • #1,243
  • Sep 11, 2007 8:18am Sep 11, 2007 8:18am
Quoting linuxtroll
Jeg bodde mange år i Norge...

mvh,
Quoting PaleRainbow
Å, jøss...så kult!!!
Det er flere vikinger og troll her..

Thank you for sharing your method Linuxtroll.

Arctic4x
  • #1,244
  • Sep 11, 2007 11:28am Sep 11, 2007 11:28am
Quoting JoshDance
FXSurfer, I'm by far no expert, but perhaps you could try a 1, 3, or 5-min timeframe? I know there's lots of action on the 5s but let's be honest--the noise at that level is so high that only a veteran can make money on it... and for those with not much experience, even a 5-min chart is tough! So why not try 1 min, and see if that will allow a more clear pattern to present itself..? That would also let you shoot for more like 15 pips at a time, in which case a 2 pip spread won't kill you... just something to think about? Keep drinking that coffee dude!! :-)
Thanks for the thoughtful reply, JD!
I've enjoyed reading your posts on FF for a while now!

I understand and basically agree with your conclusion. Except that with this
method it seems that using a 5 sec. TF to get inside of those longer
TF candles/bars is important.
I have to ask myself WWLTD? (LOL)
Probably two things:
1) Keep the 5 sec. TF but, zoom out on the chart.
2) Not try to force noise trades during low liquidity times of day.

If I have to move to higher TF's I will, of course, just have to do it.
But, it will be like watching my fingernails grow compared to 5 sec.
charts!

Thanks again and GOOD TRADING to you Josh!
  • #1,245
  • Sep 11, 2007 12:19pm Sep 11, 2007 12:19pm
Thanks much LT!

Between watching price action on the 10's as drawn and watching the 5 sec rainbow I have had a fun day.

I know I over traded today, but this is live with mini's just to stay in the game through the day and get lots of screen time.

Total profit 11.25 pips with spread plus 1.25 per mini lot commission that my current MM has. I am in process of switching brokers, but for now must account for 2 pip spread on $J PLUS the 1.25 fee.

Any comments on my wild day are welcome. You will several Bubble trades! (30 second chart shown to get whole picture. Trades placed on the 5 second chart).

Fun stuff, thanks again.
Attached Image (click to enlarge)
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  • #1,246
  • Sep 11, 2007 12:21pm Sep 11, 2007 12:21pm
FxSurfer, you are correct about the lofty levels of MBT's commission rates. If you are really going to do high volume scalping using the 5 sec or tick charts, you cannot IMHO do it with MBT. Their commissions are USD$50 per million USD traded per side (or as they quote them $5 per $100,000 traded). This becomes a commission of around $10 x 1.3840 = $13.84 per 100k lot traded round turn for EURJPY at the current rate for EURUSD of approximately 1.3840.

At the current value of around 114.00 for USDJPY, the pip value for EURJPY is around $8.77; so your breakeven point after commissions on a EURJPY scalp is $13.84 / $8.77 = 1.6 pips. This is not even taking the spread into consideration. If you're just scalping for 2 pips on EURJPY, even if your spread is zero (choice), this probably won't work in the long run at MBT. The spread on EURJPY is not at 0 very often anyway. Even when you momentarily get choice spreads, you are competing against other traders at the same time for the same liquidity. It is not easily accessible.

Furthermore, with the proliferation of automated systems, an algorithm [runnin on a dedicated server near the broker's execution server] will always be able to access the spread=0 condition before a discretionary (manual clicking) trader can; unless of course the pair remains at choice spread for at least a few seconds - which is not normally the case.

If you don't want commissions to be a deterrent to the type of scalping you do, you need to access institutional liquidity, where you'll get spreads similar to MBT, but your commissions will be a lot lower. Of course the account minimum requirements will be higher than MBT at institutional type firms.

We had to do this for our high frequency algorithmic trader now at BGC in London. You'll also need a front end to bypass the institutional platform at the broker you use (e.g., Currenex at BGC) because institutional platforms suck (Currenex is the worst IMHO). Either that or you need to be able to access the FIX API with programming (like our trader does at BGC using C++ and a FIX engine).

I hope this helps.
  • #1,247
  • Sep 11, 2007 12:38pm Sep 11, 2007 12:38pm
Quoting dominicanosrus
If you don't want commissions to be a deterrent to the type of scalping you do, you need to access institutional liquidity

Of course the account minimum requirements will be higher than MBT at institutional type firms.
Many thanks D.!
I will have such an account at some point as I really am growing
fond of the 5 sec. TF scalps! Hopefully sooner rather than later.
Maybe my best option for a small account is longer TF trades using
our same methodology, as JD has just suggested earlier.

Anyone else like to weigh in on the NB small fish/high cost issue?
You don't want your little friends to just get eaten up by the sharks,
right? LOL
  • #1,248
  • Sep 11, 2007 12:45pm Sep 11, 2007 12:45pm
No problem Surfer. The lowest account minimum that I'm aware of for a second tier prime broker that offers Currenex is $25,000. I know BGC in London has a $25,000 min. Capital Forex Pro has a $30,000 min and slightly higher commissions. I don't remember what ODL's minimum is. You'll still need to be able to bypass the Currenex platform (because it, as I mentioned before, sucks). If you are able to do the programming job yourself (I had it done in the past by a Canadian programmer for a manual trader), you'll save some money. If not, you might want to consider the ChoiceFX platform which can aggregate feeds (including Currenex) for an additional $8 a million.
  • #1,249
  • Sep 11, 2007 2:01pm Sep 11, 2007 2:01pm
The ChoiceFX platform looks good D!
Many thanks again.
An area of great importance for
would be scalpers!
  • #1,250
  • Sep 11, 2007 2:57pm Sep 11, 2007 2:57pm
Yes; it's pretty good for manual scalpers. Most traders that I know who use it like it. We've also been using on and off with our traders for the last year or so. Their head guy is Dan Raykhman and he's very helpful.
  • #1,251
  • Sep 11, 2007 4:13pm Sep 11, 2007 4:13pm
Quoting dominicanosrus
Yes; it's pretty good for manual scalpers. Most traders that I know who use it like it. We've also been using on and off with our traders for the last year or so. Their head guy is Dan Raykhman and he's very helpful.
Many thanks D. for your very interesting informations.
  • #1,252
  • Sep 11, 2007 7:06pm Sep 11, 2007 7:06pm
No problem, Bruno. Anytime. Every scalper/trader that reaches a certain level of success needs to go the institutional route. Fast scalping has a lot of liquidity limitations. The "three-trillion-dollar-a-day market" BS that your hear unscrupulous brokers promote is a hoax because the entire market is segregated - not centralized; thus, the liquidity you have access to depends on the liquidity your broker provides you with. With retail platforms, your liquidity is even more limited (despite the fact that some retail shops claim you can trade "any size" through them).
  • #1,253
  • Sep 11, 2007 9:33pm Sep 11, 2007 9:33pm
Quoting Arctic4x
Det er flere vikinger og troll her..

Thank you for sharing your method Linuxtroll.

Arctic4x
Cool... One Tronder... LoL
  • #1,254
  • Sep 11, 2007 9:37pm Sep 11, 2007 9:37pm
Quoting JoshDance
FXSurfer, I'm by far no expert, but perhaps you could try a 1, 3, or 5-min timeframe? I know there's lots of action on the 5s but let's be honest--the noise at that level is so high that only a veteran can make money on it... and for those with not much experience, even a 5-min chart is tough! So why not try 1 min, and see if that will allow a more clear pattern to present itself..? That would also let you shoot for more like 15 pips at a time, in which case a 2 pip spread won't kill you... just something to think about? Keep drinking that coffee dude!! :-)
You are wrong... More bigger time frame you trade bigger the risk and draw down and trade time... Small fishes can not absorb that... More you stay in the market more risk too...

Rainbow chart is different... You can capture the whole daily move by staying in 5 sec... max 30 sec... Think about it?
  • #1,255
  • Sep 11, 2007 9:40pm Sep 11, 2007 9:40pm
after watching the rainbow for some time i get a feeling the rainbow itself is not that important. it's just a visual help for a beginner trader. it's the price movement thats the most important thing and i'm sure linuxtroll can successfully trade without any moving averages just looking at the price chart. i hope i'll be able to master my trading to this level
thanks lt for the method
"Nothing is unexplainable, Everything is mystery" W. Liquorman
  • #1,256
  • Sep 11, 2007 9:41pm Sep 11, 2007 9:41pm
Quoting cesande
Thanks much LT!

Between watching price action on the 10's as drawn and watching the 5 sec rainbow I have had a fun day.

I know I over traded today, but this is live with mini's just to stay in the game through the day and get lots of screen time.

Total profit 11.25 pips with spread plus 1.25 per mini lot commission that my current MM has. I am in process of switching brokers, but for now must account for 2 pip spread on $J PLUS the 1.25 fee.

Any comments on my wild day are welcome. You will several Bubble trades! (30 second chart shown to get whole picture. Trades placed on the 5 second chart).

Fun stuff, thanks again.
Charge on...
  • #1,257
  • Sep 11, 2007 9:58pm Sep 11, 2007 9:58pm
Quoting eyecelll
after watching the rainbow for some time i get a feeling the rainbow itself is not that important. it's just a visual help for a beginner trader. it's the price movement thats the most important thing and i'm sure linuxtroll can successfully trade without any moving averages just looking at the price chart. i hope i'll be able to master my trading to this level
thanks lt for the method
Check the screenshot in post #1 in this thread... Remember - Rainbow in 5 sec is price movement too... LoL
  • #1,258
  • Sep 11, 2007 10:08pm Sep 11, 2007 10:08pm
Quoting dominicanosrus
No problem, Bruno. Anytime. Every scalper/trader that reaches a certain level of success needs to go the institutional route. Fast scalping has a lot of liquidity limitations. The "three-trillion-dollar-a-day market" BS that your hear unscrupulous brokers promote is a hoax because the entire market is segregated - not centralized; thus, the liquidity you have access to depends on the liquidity your broker provides you with. With retail platforms, your liquidity is even more limited (despite the fact that some retail shops claim you can trade "any size" through them).
This thread is not for institutional scalpers... You can work within the liquidity provided by EFX and with lower capital... and build your wealth to reach institutional scalping level... my e-book will give the details... Linuxtroll Simple Scalping is high probability low frequency scalping - With Rainbow, you can easily scalp above the commission and spread everyday (that's why Rainbow scalpers are starting with screen time)...
  • #1,259
  • Sep 11, 2007 10:28pm Sep 11, 2007 10:28pm
Quoting dominicanosrus
No problem Surfer. The lowest account minimum that I'm aware of for a second tier prime broker that offers Currenex is $25,000. I know BGC in London has a $25,000 min. Capital Forex Pro has a $30,000 min and slightly higher commissions. I don't remember what ODL's minimum is. You'll still need to be able to bypass the Currenex platform (because it, as I mentioned before, sucks). If you are able to do the programming job yourself (I had it done in the past by a Canadian programmer for a manual trader), you'll save some money. If not, you might want to consider the ChoiceFX platform which can aggregate feeds (including Currenex) for an additional $8 a million.
Platform helps, but it is all depends on the scalper... Soon we may see some tools like TradeMaven and X_Trader to trade ForEx through ECNs... Omega may be... LoL

http://www.tradingtechnologies.com/xtrader.aspx - Tool created by the guy who created the 9/30 setup...

http://www.trademaven.com/ - Tool created by the guy who wrote the Mantras...
  • #1,260
  • Sep 11, 2007 10:42pm Sep 11, 2007 10:42pm
This is what we need when we move to institutional level...

X-Trader 7 demo::MD Trader
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