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Linuxtroll Simple Scalping

  • #1,441
  • Sep 14, 2007 10:20am Sep 14, 2007 10:20am
LT,

Following Shreem question do you think ticks charts make any difference? . I attach to identical charts one 5 secs and the other a 10 ticks... For me the 10 tick look better. What do you think?

Thanks,

jjrvat

Attachment

Attachment

Quoting shreem
Hello Linuxtroll, thank again for the great help that you gives to help us with the rainbow.

I have a question for you about ticks charts. What tick chart (in number of ticks per bar) do you consider the best according to your scalping strategy?

Thank very much again and cannot wait to see your e-book.

Great trading to all

Sincerely

Update: Here is a 5 ticks chart of EUR/JPY from Ensign charting package with a 22 pips win

Most power to LT for this great thread

Shreem
Attached Image(s) (click to enlarge)
Click to Enlarge Name: ER2 10 Ticks.jpg Size: 145 KB
Click to Enlarge Name: ER2 5 Secs.jpg Size: 151 KB
  • #1,442
  • Sep 14, 2007 10:27am Sep 14, 2007 10:27am
Quoting kruno
My first demo rainbow trading day is over.
Managed to grab fast 30 pips this morning and somehow lost 20 after that.
Day saver on the attach, 1 badly placed short was averaged up with two better ones. Stops managed manually should be triggered at one critical point, but I decided to give it an extra 5 pip chance to turn over.
This trade ended with average +23 pips on 3 lots.

Need more screening time to get better entries.
Better entries - tighter stops - lower risk/reward ratio.
Patience is everything. I lost almost entire good trade on being impatient.
From what I bolded above, it sounds actually like you should focus on better exits. Moving your stop in the opposite direction is something you should never ever do, and this is an example of a bad exit. Good entries are important, but good exits are more important. This is how you limit your losses, and let your winners run. Money can be made on a random entry coin flip system, and consistently at that. Money can not be made, however, if exits are not logical and money management is not used.
  • #1,443
  • Sep 14, 2007 10:27am Sep 14, 2007 10:27am
Quoting jjrvat
LT,

Following Shreem question do you think ticks charts make any difference? . I attach to identical charts one 5 secs and the other a 10 ticks... For me the 10 tick look better. What do you think?

Thanks,

jjrvat

Attachment

Attachment
jj, I like the tick chart. :-)
  • #1,444
  • Sep 14, 2007 11:21am Sep 14, 2007 11:21am
Quoting JoshDance
From what I bolded above, it sounds actually like you should focus on better exits. Moving your stop in the opposite direction is something you should never ever do, and this is an example of a bad exit. Good entries are important, but good exits are more important. This is how you limit your losses, and let your winners run. Money can be made on a random entry coin flip system, and consistently at that. Money can not be made, however, if exits are not logical and money management is not used.
You are right about the stops, and I wrote that stop should be triggered there, it is a bad decision that turned out well. But this is no excuse.
I know that a positive trade based on a bad decision is worse than a negative on good one because you develop bad habits that will return favor with big interests (meaning small profit today - big loss tomorrow).
Actual Exit was qualified by price piercing the spine.
In your opinion is this a valid exit or should I waited for spine to reverse direction?
  • #1,445
  • Sep 14, 2007 11:27am Sep 14, 2007 11:27am
Quoting kruno
You are right about the stops, and I wrote that stop should be triggered there, it is a bad decision that turned out well. But this is no excuse.
I know that a positive trade based on a bad decision is worse than a negative on good one because you develop bad habits that will return favor with big interests (meaning small profit today - big loss tomorrow).
Actual Exit was qualified by price piercing the spine.
In your opinion is this a valid exit or should I waited for spine to reverse direction?
I'll let other more experienced people answer this, but my opinion is that if price has crossed the spine then a trend reversal, or at least a consolidation, has taken effect. I look at more than the rainbow--also note the peaks. In a downtrend, are the lows getting lower and the highs getting lower? Once a previous low (in a downtrend) fails to be broken by a new low, or a previous high is violated to the upside, then that's a signal to watch for a reversal or consolidation (and vice versa for an uptrend). So for me it's basic stuff like this to watch for--the rainbow provides a great indication along with price action based on basic TA. That's my take.
  • #1,446
  • Sep 14, 2007 12:10pm Sep 14, 2007 12:10pm
Piercing spine is not always reversal, greater the angle of spine is, more harder is to reverse. My exit was OK because there was a reversal in trend afterwards. I did not take this trade because overall trend is down. But in this countertrend you can see price spike through spine (with LL and LH) and continue upwards. This is a bit confusing to me.
Attached Image (click to enlarge)
Click to Enlarge Name: Gu 14-9-07 3.jpg Size: 95 KB
  • #1,447
  • Sep 14, 2007 2:05pm Sep 14, 2007 2:05pm
Yes eyecelll you're spot on with the fact that it's all about understanding price and it starts to make sense once ya stare at those charts for a few years (or a few months if you're sharper than I am). I wonder how many folks know who the pic is that you used for your avatar? Nisargadatta, I read one of his books about 12 years ago. cheers,Fritz


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
  • #1,448
  • Sep 14, 2007 3:08pm Sep 14, 2007 3:08pm
Quoting fritz
I wonder how many folks know who the pic is that you used for your avatar? Nisargadatta, I read one of his books about 12 years ago. cheers,Fritz
Here's a quote by him that reminds me of Eddie Toppel's (Zen in the Markets)
approach to getting Ego out of the way of your trading:

'"The life force [prana] and the mind are operating [of their own accord], but the mind will tempt you to believe that it is "you". Therefore understand always that you are the timeless spaceless witness. And even if the mind tells you that you are the one who is acting, don't believe the mind. [...] The apparatus [mind, body] which is functioning has come upon your original essense, but you are not that apparatus."

Good Stuff!

What a week on the thread and demo scalping!
Full Steam Ahead!
  • #1,449
  • Sep 14, 2007 4:01pm Sep 14, 2007 4:01pm
Quoting shreem
Hello Linuxtroll, thank again for the great help that you gives to help us with the rainbow.

I have a question for you about ticks charts. What tick chart (in number of ticks per bar) do you consider the best according to your scalping strategy?

Thank very much again and cannot wait to see your e-book.

Great trading to all

Sincerely

Update: Here is a 5 ticks chart of EUR/JPY from Ensign charting package with a 22 pips win

Most power to LT for this great thread

Shreem
This chart is fine...
  • #1,450
  • Sep 14, 2007 4:03pm Sep 14, 2007 4:03pm
Quoting dominicanosrus
Wow! 100 Pages. Way to go LT!
Thanks big D... 133K view...
  • #1,451
  • Sep 14, 2007 4:09pm Sep 14, 2007 4:09pm
Quoting Carllos
LT do you mind comment this lines?

I´m now hitting a fair % rate around 80%. Also i´m getting confortable with 5sec chart wich was a problem at beggining. Main problem is that i´m a very conservative person, i have a fix tp=3 pips. So, my 2/10 trades that i miss eat some of my profits.
So in this stage my personal doubt is to know if i shall do what everyone is doing (trailing stop till it´s close) and probably get back to the 50% hit rate or continue trading the way i feel confortable and get better at hitting good trades.

Thanks LT

Carllos
Continue trading the way you feel comfortable and reach 99% hit rate...
  • #1,452
  • Sep 14, 2007 4:14pm Sep 14, 2007 4:14pm
Quoting JoshDance
I'll give you an example of how useful a 5min chart was this morning, in affecting my decision to not go short on EURJPY. Note the S/R line I drew, and how price hit it and stopped dead in its tracks (at the circle), even when there was a decent setup on the 5s chart, so I did not take the trade. I even used an hourly chart for drawing major S/R. Price does respect these areas, so it's good to have a roadmap for where price may react.
You can use H-line in 5 sec too...
  • #1,453
  • Sep 14, 2007 4:21pm Sep 14, 2007 4:21pm
Quoting jjrvat
LT,

Following Shreem question do you think ticks charts make any difference? . I attach to identical charts one 5 secs and the other a 10 ticks... For me the 10 tick look better. What do you think?

Thanks,

jjrvat

Attachment

Attachment
xTick charts are better than Oanda 5 sec chart... You can decide on the x... Try up to 133 ticks... pick one you like and keep it...

Cheers,
  • #1,454
  • Sep 14, 2007 5:00pm Sep 14, 2007 5:00pm
Hello Linuxtroll, thank very much for your answer about ticks charts. I am playing with them recently and they seems to fit very well with the rainbow scalping.

The thing is to find the right number of ticks and stick with it.

For now, I like the 5 tick chart.

Wishing you all a great week-end and lots of pips or ticks nect week

Sincerely

Shreem
  • #1,455
  • Sep 14, 2007 6:17pm Sep 14, 2007 6:17pm
Quoting shreem
Hello Linuxtroll, thank very much for your answer about ticks charts. I am playing with them recently and they seems to fit very well with the rainbow scalping.

The thing is to find the right number of ticks and stick with it.

For now, I like the 5 tick chart.

Wishing you all a great week-end and lots of pips or ticks nect week

Sincerely

Shreem
Hi Shreem,

I too have Ensign charting. Just in case you don't know, Ensign can also do a seconds chart. Simply click on the icon just left of the middle of the toolbar that looks like a clock. A box will drop down and you'll see all the times for charts. Click on "Edit" towards the bottom of the drop down box. The background of the boxes will change to white to let you type in what you want in whichever box you decide to change. We want 5 seconds as per LT...type S5 then click save and you're all set. Next time you need a 5 second chart just click on the clock icon and whatever box you put your S5 in.

If you already know all of this or intend to use tick charts instead of seconds....just ignore this info, lol.
Just a side note: I have studied the 5 second chart movement and it seems that the 3 tick chart is about the cloest match for what LT wants us to use.

Happy charting!
  • #1,456
  • Sep 14, 2007 7:28pm Sep 14, 2007 7:28pm
Hello Candy, thank you very much for your post. It definitely help me a lot. I was wondering if Ensign has second charts and I am very happy that they have it. Thank also for the tip about the 3 tick chart which is the closest to the 5 second chart.

I will keep both of them side by side and will see how it look like.

Again, very much appreciated for your help

Sincerely

Shreem
  • #1,457
  • Sep 14, 2007 9:00pm Sep 14, 2007 9:00pm
Quoting linuxtroll
xTick charts are better than Oanda 5 sec chart... You can decide on the x... Try up to 133 ticks... pick one you like and keep it...

Cheers,
Hi Linuxtroll,

so should we stick to 5 sec chart or change to xticks? I mean unlike futures different forex data providers have different tick update rate, so does this mean we stick to 5 secs if trading Forex?
  • #1,458
  • Sep 14, 2007 9:09pm Sep 14, 2007 9:09pm
Hi Shreem and Candy,

Is the forex feeds your Ensign charts take, eSignal or IB or free FXCM(?) feeds. How fast and accurate are they as you observe?

I used to have Ensign but the free feeds were almost non usable.

I observe that InterbankFX quotes/charts are about 1 second ahead of OANDA charts and EFX/MBT about 5 seconds ahead of OANDA.

If you want to trade LT simple scapling with less than 1 min charts, then one would have to go to other charting software. But more important is the speed of feeds. If, as often suggested by LT, you want to trade an ECN such as EFX, the prices on charts should be as fast, not lagged by 5 seconds (OANDA).

Do you observe on Ensign comparable speed of price changes to EFX/MBT quotes?

Thanks for your input. RS
  • #1,459
  • Sep 14, 2007 10:30pm Sep 14, 2007 10:30pm
Quoting FXSurfer

'"The life force [prana] and the mind are operating [of their own accord], but the mind will tempt you to believe that it is "you". Therefore understand always that you are the timeless spaceless witness. And even if the mind tells you that you are the one who is acting, don't believe the mind. [...] The apparatus [mind, body] which is functioning has come upon your original essense, but you are not that apparatus."

wow fxs,
i havent read nisargadatta's teachings for awhile and these words are so sharp. i just felt creeps all over the body.

Quoting fritz
Yes eyecelll you're spot on with the fact that it's all about understanding price and it starts to make sense once ya stare at those charts for a few years (or a few months if you're sharper than I am). I wonder how many folks know who the pic is that you used for your avatar? Nisargadatta, I read one of his books about 12 years ago. cheers,Fritz
i'm surprised you guys know him. this guy is not popular like many others. sorry for being off the topic, so lets get back to scalping. fritz, tell us what you think of linuxtroll method, i see you have some good background. maybe you have some suggestions?

question to linuxtroll:
i dont have much of the screen time now but can come to the computer every 1 or 2 hours, so i'm using a mix of rainbow and gmma on 1hr charts. you mentioned we could use cci 21 with it. do i really need it? i think all i need is already on the rainbow/gmma or maybe i'm missing something?
Attached Image (click to enlarge)
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"Nothing is unexplainable, Everything is mystery" W. Liquorman
  • #1,460
  • Sep 14, 2007 11:27pm Sep 14, 2007 11:27pm
Here are a couple of semi-risky trades that I took while the market was range-bound. I saw that the price was oscillating back and forth, so I drew range lines and traded near the tops and bottoms. Note that the trades do not go with the spine.

I have done many of these, most of them successfully - averaging 6-8 pips each. The one caveat is that I enter with tight stops because I want OUT in the event of a breakout (the formation of a trend) - like we saw around 08:33 EST today with the USD/JPY pair.

If you decide to try this, be darn sure you enter with stops, and that you have correctly identifed a range-bound condition.

Happy trading.
Attached Image(s) (click to enlarge)
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