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Linuxtroll Simple Scalping

  • #1,281
  • Sep 12, 2007 12:27am Sep 12, 2007 12:27am
Another day with the rainbow:

FesX 9:05 - 9:15 : 3 Contracts / 5 mins / 8 "pips" / €240

Good entry / perfect exit at the pivot / .... The rainbow works....

jjrvat

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  • #1,282
  • Sep 12, 2007 12:27am Sep 12, 2007 12:27am
How I got spanked three trades in a row tonight:

1) Sat down at the computer and decided that I
would just start trading.

2) Tried trading a range-bound market (see chart) thinking:

3) "I'll catch the very beginning of a rainbow at the edge
of this trading range. HeHe"

4) Repeated 1-3 in a stubborn, vengeance trading mode.

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  • #1,283
  • Sep 12, 2007 12:34am Sep 12, 2007 12:34am
Quoting FXSurfer
How I got spanked three trades in a row tonight:

1) Sat down at the computer and decided that I
would just start trading.

2) Tried trading a range-bound market (see chart) thinking:

3) "I'll catch the very beginning of a rainbow at the edge
of this trading range. HeHe"

4) Repeated 1-3 in a stubborn, vengeance trading mode.

Haha yeah it happens to the best of us sometimes.

But hey, thats what the rainbow is for, to spot the trendstrength and see whenever it is ranging.



And besides, I now sit at my computer for about 1h and wait for the damn price to start moving (but i did not enter a single trade ). "Frustrading"


And two ideas you might consider:

1. I do not trade if the price spikes up or down (which happens quite a lot in ranges)
2. Scale out a little bit, decrease the distance between your H lines. Helps me to see the moves better and sort out the "trash"

mmmh i get the feeling that EJ will wake up soon.
Update: Uh yeah i knew it, ship da one pip *lol*.
  • #1,284
  • Sep 12, 2007 1:24am Sep 12, 2007 1:24am
Quoting Canyouseeme
These lines are simply the grid drawn by the charting software.

V Lines are vertical lines= the time separators (in 5 min interval for example).
H lines are the horizontal lines= the price separators ( in 5 pip interval i.e.).

These lines are arbitrary for everyone. Just make sure you use the same each time you trade(for me its 5 min and 5 pip).

Edit:

Now why are these lines important? Well they are always round numbers (45 60 etc.)

But more important they can help you to enter and exit your trades.

LT taught at the kol forum that you should enter once the spine crosses a H/V line and exit when the price hits a H line.
Though of course you can find different ways to enter and exit this is a good set of rules to scalp.

Hi Canyouseeme,

Thans for taking the time explain the queries. But what is the "Kol" Forum you are talking about????

Regards
  • #1,285
  • Sep 12, 2007 1:30am Sep 12, 2007 1:30am
Quoting yyc196
Hi italianfx,

Could you please explain more about the V and H lines, I saw this term before in the past post but sad to say I still had a difficult time figure out what is it and how to identify them?

I am just a bit slow in this area, thanks if you could help.

Regards
Hi!
Canyouseeme has already answered your question
H= horizontal line (price line)
V= vertical line (time line)
  • #1,286
  • Sep 12, 2007 1:40am Sep 12, 2007 1:40am
Sry, i actually didnt think it is important since i think LT gave all the information he thinks is needed to trade the rainbow in this thread.
Besides the posts in the kol forum are older.

With that in mind kol forum= kolachi -trader forum. kolachi.tv/forum or sth like that it is. ( Trading methods - Linuxtroll Rainbow)
  • #1,287
  • Sep 12, 2007 3:27am Sep 12, 2007 3:27am
Quoting ikons8
The tool is already available on IB, with market depth, P & L and everything. See below. Lowest commission, but 0 spread simply doesn't exist.
Spread 0.5 happens every few minutes in IB. Spread 0 appears too, but very rare ( once a day or rarely).

Regards
  • #1,288
  • Sep 12, 2007 3:53am Sep 12, 2007 3:53am
Nice scalping Method....
I just wonder how to get 5 sec TF on MT4, Do you know how to convert to 5 sec TF on MT4. Thanks alot
  • #1,289
  • Sep 12, 2007 3:57am Sep 12, 2007 3:57am
Quoting B4dak
Nice scalping Method....
I just wonder how to get 5 sec TF on MT4, Do you know how to convert to 5 sec TF on MT4. Thanks alot
Use Oanda Chart. Oanda desktop version are good also.
  • #1,290
  • Sep 12, 2007 4:22am Sep 12, 2007 4:22am
Quoting rem
Spread 0.5 happens every few minutes in IB. Spread 0 appears too, but very rare ( once a day or rarely).

Regards
Hi REm,

It appears that we are the only two with IB in this forum. Booktrader is a great app, as you know.
  • #1,291
  • Sep 12, 2007 4:35am Sep 12, 2007 4:35am
Quoting B4dak
Nice scalping Method....
I just wonder how to get 5 sec TF on MT4, Do you know how to convert to 5 sec TF on MT4. Thanks alot
No such thing on MT4. 1min is the lowest amount, besides the tick chart on the left which you can get but not annotate or add studies to.
  • #1,292
  • Sep 12, 2007 4:44am Sep 12, 2007 4:44am
Quoting linuxtroll
-
-Jump in and out with higher lots
Question re post #1: not sure sure what is meant by higher lots. I took it to mean increasing lot size as trend strengthens, or as the account grows, or a martingale type system...but its probably something else. Help?
  • #1,293
  • Sep 12, 2007 5:04am Sep 12, 2007 5:04am
Quoting FXSurfer
Thanks for the thoughtful reply, JD!
I've enjoyed reading your posts on FF for a while now!

Thanks again and GOOD TRADING to you Josh!
Thanks FX, you too buddy! :-)
  • #1,294
  • Sep 12, 2007 5:06am Sep 12, 2007 5:06am
Quoting arielkorber
Question re post #1: not sure sure what is meant by higher lots. I took it to mean increasing lot size as trend strengthens, or as the account grows, or a martingale type system...but its probably something else. Help?
I think LT means that as soon as you spot a good probability trade you take it with higher lots for example i see a high probability buy on Eur/Jpy instead of the traditional 2% of your account position i jump in with 10 lots lock in 5-10 pips then stop trading for the day... im sure LT can explain it much better than i can.
Egyptian and proud of it!
  • #1,295
  • Sep 12, 2007 5:27am Sep 12, 2007 5:27am
GBP / USD last half an hour...

I was checking the GBP/US cross the last 30 min in a chart with the rainbow and stochastics and it looks pretty impressive. The arrows in the charts show oversold or overbough stochastic crosses (my chart plataform does this automatically). All the red arrows pointed out perfect entries and the green ones very good possible exits ... of course in combination with the rainbow....

Anybody using stochastics with the rainbow??? ...

jjrvat
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  • #1,296
  • Sep 12, 2007 5:28am Sep 12, 2007 5:28am
Quoting g-dogg
I think LT means that as soon as you spot a good probability trade you take it with higher lots for example i see a high probability buy on Eur/Jpy instead of the traditional 2% of your account position i jump in with 10 lots lock in 5-10 pips then stop trading for the day... im sure LT can explain it much better than i can.
Are you considering 2% a low amount of risk on a position? I'm not sure how big your account is, but consider this--assuming a 10 pip SL (including spread, no commissions), on EURJPY, with a $50,000 USD account, then 10 standard lots equates to 1.9% risk. On a $20,000 USD account, that's over 4% risk. Maybe you have a $50,000 account, in which case you're risking 2% here, but even that is too much, and I'll explain why below.

Even for swing/long-term traders, 2% is not low... for scalpers, who get at least 3 or 4 setups per day, 2% is faaaaaar too high of a risk, even if you're really good. Why? Drawdown--lose 5 trades in a row, which is not only possible, but extremely probable, even for a seasoned trader, and you're down 10%--tolerable, but not even close to a worse case. You have to consider *max* drawdown, and this will come only after thousands of trades to test it for you personally. Risk of somewhere around %0.5 per trade will allow a good trader to weather large drawdowns, which will happen. With a well-tested system which produces a mere 1R return per trade on average, a 0.5% risk per position should yield superb results. Assuming an average 1R return per trade, and 4 trades per day, you'll have 2% average return per day, or about 400% return per year, if you could sustain that--which would be hard. Anything higher is just foolish, and any scalper who risks 2% per trade WILL blow their account (may take years, but at some point the losing streak, the "big one", WILL come). And I'm talking about truly seasoned traders, which is probably only a handful here--newbies will blow their account even sooner using such a high %R.
  • #1,297
  • Sep 12, 2007 5:49am Sep 12, 2007 5:49am
Quoting linuxtroll
Linuxtroll Simple Scalping is not an entry/exit method... It includes risk management, money management, mantras etc... 5 sec Rainbow is only a tool of the trade to run your scalping business...

... I explained everything in my e-book... a complete method to increase your wealth... LoL

In essence, Linuxtroll Simple Scalping is a defensive trading strategy based on risk management. It is about taking small profits and learning risk management and money management techniques to win more consistently and frequently.
I'm using "risk" in the sense most think about it--the amount of money you can potentially lose on a trade. If I "risk" $1000 on a trade by setting my initial stop (either a real one or mental), then that's how much I can potentially lose. I think you're talking about how to eliminate the risk soon after we put on a trade, which is an excellent idea--but that says nothing of "how much" we put on a trade. This is the first step in risk management--defining how much to risk in the first place. Once we have that in place, then we can go about lessening the risk once in a trade. I have not yet seen, though I may have overlooked it, a post where you describe a possible position sizing strategy, which is what sets your initial risk for a trade--if you have posted something of that sort, I'd love to read it.

Please do not take any of this the wrong way--I'm simply encouraging people to think about how much they're risking--this is the absolute most important part of any system (other than the obvious self-psychology that makes the whole system run)--not entry, not exit, not mantras--position size determines how much we can lose, and since the name of the game is money, it's absolutely critical.
  • #1,298
  • Sep 12, 2007 6:00am Sep 12, 2007 6:00am
Hello Ikons8 and Rem, I have a few questions about the booktrader you guys are using.. The booktrader tool that you have a pic of, you said its available through IB, do you mean interactive brokers? I had gone to their site and didn't see anything about booktrader, just ideal and ideal pro..

Anyhow, how do you find is the execution with the platform and broker you are using? I'm assuming its an ECN setup?? And what is the leverage offered and the account minimum to trade those spreads and get the booktrader?? And last but not least, how do you find their price feeds compared to oanda, is it off by alot or a few pips??

I'm not concerned with the spread being 0, if its 1 pip to 1.5 pip I'm happy, as long as their commissions aren't ridiculous like EFX.. I'd trade 5 - 10 lots so commissions is a big factor.. What is the commission structure they have?

Thank you both in advance for the info..
  • #1,299
  • Sep 12, 2007 6:00am Sep 12, 2007 6:00am
EURJPY, fantastic opportunity...!
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  • #1,300
  • Sep 12, 2007 6:25am Sep 12, 2007 6:25am
Quoting JoshDance
EURJPY, fantastic opportunity...!
It is and i am still in that trade :-) Enjoy the pips.
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