Indeed another good setup but M1 TF is way too boring and easy to trade of
Go for 5sec. 5sec is a lot more fun. (yes i am an actionjunky lol)
- #1,322
- Sep 12, 2007 12:34pm Sep 12, 2007 12:34pm
- Joined Mar 2007 | Status: ~~~~~~~~~ | 3,692 Posts
(just imagine the eyes opening in shock of a long-term investor who uses weekly-only charts at hearing that 1-min is too boring lol!!!)
< Daily Candles = Noise
We are the trolls who live and work inside of their candles!
LoLWhen we get the tools working with ECNs; Rainbow scalpers will be ready... Until then we will use whatever options available... business as usual...
Like his quote says:
"It's not the strongest species that survive, nor the most intelligent, but the one most responsive to change" -- Darwin.
By the way, I see there is a little too much of the male ego popping up lately.
Maybe I should use some of my female ego => Fiercy and firey north-norwegian one
I think this thread is basically about the LinuxTroll's simple scalping and to learn it so well that we get a high % of successive trades. Since LinuxTroll has several years of practice on this method and also a high % of successive trades, he should know what hes speaking about.
**************
Update on my process since yesterday: three times I saw a similar pattern and the same thing happened all three times. Maybe I start to get it, lol.
So I will post the third printscreen from yesterday with this pattern. I was quite sleepy when it started, but woke up fast when I saw this.
Pas a pas, se va lučnh
- #1,324
- Sep 12, 2007 1:21pm Sep 12, 2007 1:21pm
Hey PaleRainbow,
Good to hear the woman's perspective--Norwegian and all! We are here to learn LT's system. I was taught at an early age that I could do anything I put my mind to--if that is trading the 5 second, I can do it--and be long run profitable, albeit, I do need to go about it with some sense of reason (I trade only 1 penny a pip in my live account till I have demonstrated a high enough %, then move up to $1, then up to $5, then to $10, and on to 3%sl amount.) I have looked at several systems including different time frames over 3month, 6, and even longer term and have never had the same amount of success that I have with LT's method.
Now, on to your trade--could you let us know where you bought and where you sold? You couldn't have bought before the arch is it seems to be your indicator. If you had bought one h-line below, you would have gotten in at 114.28 (lots of time between that line and the movement at the next v-line--I tend to get out of trades that stall for such an amount of time-yeah, I know, I've got to work some on my psyche Also, do you find that a 2pip h-line increment works well? Thanks a ton for posting your chart, helps us all learn! pk
Good to hear the woman's perspective--Norwegian and all! We are here to learn LT's system. I was taught at an early age that I could do anything I put my mind to--if that is trading the 5 second, I can do it--and be long run profitable, albeit, I do need to go about it with some sense of reason (I trade only 1 penny a pip in my live account till I have demonstrated a high enough %, then move up to $1, then up to $5, then to $10, and on to 3%sl amount.) I have looked at several systems including different time frames over 3month, 6, and even longer term and have never had the same amount of success that I have with LT's method.
Now, on to your trade--could you let us know where you bought and where you sold? You couldn't have bought before the arch is it seems to be your indicator. If you had bought one h-line below, you would have gotten in at 114.28 (lots of time between that line and the movement at the next v-line--I tend to get out of trades that stall for such an amount of time-yeah, I know, I've got to work some on my psyche
Also, do you find that a 2pip h-line increment works well? Thanks a ton for posting your chart, helps us all learn! pk
I agree with LinuxTroll on this one.
Like his quote says:
"It's not the strongest species that survive, nor the most intelligent, but the one most responsive to change" -- Darwin.
By the way, I see there is a little too much of the male ego popping up lately.
Maybe I should use some of my female ego => Fiercy and firey north-norwegian one
I think this thread is basically about the LinuxTroll's simple scalping and to learn it so well that we get a high % of successive trades. Since LinuxTroll has several years of practice on this method and also a high % of successive trades, he should know what hes speaking about.
**************
Update on my process since yesterday: three times I saw a similar pattern and the same thing happened all three times. Maybe I start to get it, lol.
So I will post the third printscreen from yesterday with this pattern. I was quite sleepy when it started, but woke up fast when I saw this.
Problem with these is that the actual arch develops while the price is already falling rapidly. So be careful if you trade them. Enter early, not too early and certainly not too late
- #1,328
- Sep 12, 2007 1:56pm Sep 12, 2007 1:56pm
By the way, I see there is a little too much of the male ego popping up lately.
Maybe I should use some of my female ego => Fiercy and firey north-norwegian one
I think this thread is basically about the LinuxTroll's simple scalping and to learn it so well that we get a high % of successive trades. Since LinuxTroll has several years of practice on this method and also a high % of successive trades, he should know what hes speaking about.
I'm not sure what you mean by male egos "popping up"--if you mean my discussion with LT, please be aware that there is no ego involved here! I totally respect LT's word on his own track record and success, and his method. Maybe you're misinterpreting ego for civilized, serious discussions? Males are quite capable of that, you know. :-) Questioning and humble challenges are how progress is made--in fact, per my discussions earlier regarding risk, it seems that in my estimation 70% of forex traders know little about how position sizing works, how leverage should be used, and how risk can be managed before a trade is ever entered. With that being said, as money is the most important goal here, it seems natural that how to protect it be one of the most important discussions we can have as traders, regardless of what method we use, whether it's investing, swing trading, or scalping.
Have a great day PR, and happy trading!
- #1,331
- Sep 12, 2007 2:20pm Sep 12, 2007 2:20pm
- Joined Mar 2007 | Status: ~~~~~~~~~ | 3,692 Posts
Any recommendations on good charting software, preferably one with a demo?
1)EFX Charts (for now try Quote Tracker w/ Navigator; Pretty good)
2) A certain E-Book (nudge, nudge, wink, wink)
:
Hey PaleRainbow,
Now, on to your trade--could you let us know where you bought and where you sold? You couldn't have bought before the arch is it seems to be your indicator. If you had bought one h-line below, you would have gotten in at 114.28 (lots of time between that line and the movement at the next v-line--I tend to get out of trades that stall for such an amount of time-yeah, I know, I've got to work some on my psyche
The first one with similar pattern had the same price-level through the whole spine arching between time-line and price-line. So I would have got in before it jumped. But that one didnt go far before it turned up again.
Thats why I am still only observing.
What I feel right now, hypotethically, is that if I enter at the time-line then it will be a "take a chance"-trade. And if entering at price-line the jump would have already happened.
But if you look at kharvell's last post where he posted his chart, you see that the arching was there too before it went up. He entered before the time-line so he got in before the arching of spine happened. And one of LinuxTrolls attachments also had that arching and he said clue is at the time-line.
As for the 2pip h-line increment...lol....I havent yet figured out how to change the increment of that grid!!! It may be this is what I need to change to see better where to enter.
Maybe LinuxTroll would give us advice on what increment he think works best with the 5 seconds chart?
JoshDance, I did a typo in that comment on the chart. I meant spine where I said price. Sorry for the confusion.
As for the "male ego" comment. I think my meaning of "male ego" is that I notice sometimes that some hasnt so easy to let go of a discussion and then the topic is sidetracking. To say it generally (this is absolutely not something that is happening with everyone!!): when men does it, its because they have this innate competition feeling where they want to win a discussion. When women sidetrack, they usually are in a mess of feelings and dont know what they really want. lol
But yes, money management is very important, of course.
PS: pkchilly, I forgot to answer about exit. I think that exit would be different depending what mood I have. If I am patient I use to wait abit to see if its going down more. If I am not patient, then I exit as soon as it starts to go upward again. That is what I have noticed on the demo-trading before. I have yet not decided what rule I want on exit. Jump out at first upward movement and then enter again, or wait and see.....
Pas a pas, se va lučnh
Awesome--can you recommend some good music for that?
I totally get what you mean by the 5s charts. I remember as a total newb, before I even learned simple TA things like S/R, I would watch a 1M chart and be amazed at the speed compared to longer time frames. So then I went to longer time frames, and there I learned a little bit about price action, and the advice to me was "dailies, then 4H, then 1H, etc...". But the problem is that unless I'm at my computer a lot, I don't really see many potential setups so my eyes never really get a feel for what the market is doing. So, moving to 1M has been fantastic! I'll have to try to trade off a 5s now :-) I see people using all sorts of charting here, including oanda. I'm using their web-based demo, but I don't think I can add studies to the charts. Any recommendations on good charting software, preferably one with a demo?
For M1 TF i think you're charting software is fine (Metatrader) i use that too since i like the interface alot. besides, i am too lazy to install the charting software of my broker
And as far as i know you should be able to add the studies even to the webbased demo of oanda charting software
(though i could be wrong anybody that uses this please reply!)
No need to get anything else.
+ If you cannot get alot of screentime in, just stick to what you are comfortable with. In the end its all about the money for most people
(for some its about the fun ).Oh and for the music: Try to get something that is rhytmic, slow, the best things are thoose with some buzzing sound this is veery relaxing for the mind.
Dont get anything with a piano or sth trompet-like *lol*.
I like the ones that sound like a rainforest or sth like that. Just some chirping, stuff like that.
Just go and search for some "yoga" or "meditation" music on your legal music finder of your choice
- #1,338
- Sep 12, 2007 4:00pm Sep 12, 2007 4:00pm
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.
I think this thread is basically about the LinuxTroll's simple scalping and to learn it so well that we get a high % of successive trades. Since LinuxTroll has several years of practice on this method and also a high % of successive trades, he should know what hes speaking about.
Egyptian and proud of it!
- #1,340
- Sep 12, 2007 4:30pm Sep 12, 2007 4:30pm
- | Commercial User | Joined Mar 2004 | 1,255 Posts
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.
-Trading Capital and Broker
-Win-Lose Ratio
-Risk-Reward Ratio
-Stop-loss and risk
-Compounding
Do not mislead the Linuxtroll Simple Scalpers... Let them learn the tool of the trade (to develop their business)... and there are more to it...
Please do not take my reply wrong -- just google and read those topics and post some matras here that all can follow... that will help all Rainbow scalpers... LoL