Linuxtroll Simple Scalping

Quoting dominicanosrus

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Using market orders is a receipe for disaster because you can get screwed when the price gaps. That's why you see all these threads on the forums of people complaining. If you don't have one-click execution on limits or fill-or-kills, then it won't work. ChoiceFx with Currenex is another option because everything can be done with one click; FOK + TP + SL. It will add around $8 per million to your execution, but it is worth it. You need $25,000 to trade with a Currenex broker though. Let me know if you need more info on any of this.

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Quoting Syafi

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open an institutional account. hotspotfxi.com might do the trick.

also you should remember, when you put very large order at low volume time of day, your order will move the market...

Even with my small order, I can halt a movement..

I use limit order with rainbow and i got fill most of the time. only when the price movement is fast, i dont get fill.

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Quoting megamo

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Just wanted to find out if there's anyone else here trading lots in the range of 400K to 1mill?? If so, what are your experiences with Oanda, or EFX maybe perhaps?? If anyone is using any other brokers for trading larger lots?

I find EFX to be too expensive when trading at these lot levels, and with oanda, I don know if its in my head or its me I tend to find that when I exit my positions, immediately the price jumps in my favor an extra 3-4 pips and also when I'm up 3-4 pips and i'm trying to exit, my pips lot of times end up a 0.5 to a 1 pip short against me after i click to close the position, so if i see 4 pips and i click close, even though i see on my screen 4 pips by the time it closes, i see a reduction of the pip amount. Those things never happened when trading smaller amounts. So just wondering if anyone else experienced anything similar with higher lots trading oanda?

Thanks

Ron

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Quoting boiseboy

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Ron:

With Oanda, both the chart feed and the "profit" display are slightly delayed from that at the server. My work-around is to open the trade window before I enter, or open a close window while I'm in the trade. The feed supplying the price to the window is faster (you'll easily see the delay I'm talking about) and I've never been slipped when I execute an order--or close order--using the price in the window.

Hope this helps!

Ed

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Quoting megamo

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I find it hard to believe that with your small order you can halt movement in a fx environment where there is no central exchange..

Again as for low volume time of day, I'm trading LT's strategy, my rainbow patterns don't form during low volatility times. Plus I doubt only a million dollar trade will have any effect on prices with a broker who has decent liquidity.

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Quoting boiseboy

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Ron:

With Oanda, both the chart feed and the "profit" display are slightly delayed from that at the server. My work-around is to open the trade window before I enter, or open a close window while I'm in the trade. The feed supplying the price to the window is faster (you'll easily see the delay I'm talking about) and I've never been slipped when I execute an order--or close order--using the price in the window.

Hope this helps!

Ed

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Quoting megamo

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Price will gap during news events or fast moving market, which is usually not the times we trade with this strategy, we'd trade during active markets but not necessarily on a news announcement or a min after or before, although I'm sure some people are doing just that..
As far as choicefx, sure if you can pass some info it would be of help.. but I think the main problem with them would be charting wouldn't it? All the execution is of no use to me if I can't chart that price, or is there a way I can use e-signal or similar charting method with them?? Funds requirements are not really an issue..

Thanks again for your valuable input.

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Quoting dominicanosrus

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Using market orders is a receipe for disaster because you can get screwed when the price gaps. That's why you see all these threads on the forums of people complaining. If you don't have one-click execution on limits or fill-or-kills, then it won't work. ChoiceFx with Currenex is another option because everything can be done with one click; FOK + TP + SL. It will add around $8 per million to your execution, but it is worth it. You need $25,000 to trade with a Currenex broker though. Let me know if you need more info on any of this.

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Quoting Poocher

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EFX's Remote Trader (Omega) out in October is supposed to have one click limit orders in its initial release as mentioned in their release email:

 

1. One-click quote board trading (with preset Limit parameters so you aren't just running Market orders)

In the EFX thread Justin has said they work with people who do size as far as commisions go.

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Quoting FXSurfer

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Great posts on execution etc., guys. Thanks!

Welcome back Dan! Where have you been?
Thanks for the great info!

Brent

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Quoting PaleRainbow

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It would be better to have a goal to learn to spot the real good setups that will give 3-5 pips, than to complain about the commission. As Linuxtroll said, it will come other ECNs with better commissions and better chart programs with time. And by then those who kept on improving their method in forex trading will be the winners.

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Quoting dominicanosrus

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PaleRainbow, I agree with you; but part of maximizing returns is minimizing reasonable costs. Commissions eat into a traders net income no matter how many pips he scalps for. If commissions are minimized, they'll improve the traders bottom line.

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Quoting dominicanosrus

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Looking for great traders and trying to convince my wife to become a Rainbow scalper. Maybe when LT vistis Miami, his wife may be able to convince mine.

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Quoting dominicanosrus

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Poocher, unless the limit order has a time expiration setting, it's not favorable for scalping. For example, let's say you get a BUY on the EURJPY when the ask is at 163.50. Let's also say that the price is moving so you are willing to get filled as high as 163.50. If you place a regular limit orde of BUY = ASK + 1, you send it at 163.51. Let's say that by the time your order gets there the price is 163.54, your order will just hang there and you'll have to cancel it manually. Before you hit the cancel button, the price can retrace and you might get filled at the original 163.51 while the price is going down.

The way to avoid this is with a FOK Limit order; meaning that when you send the order at BUY = ASK + 1 (163.51), the order is automatically cancelled when it gets to the market at ASK=163.54. At that point, you can decide to wait or take another order in the opposite direction with one click.

It's true that EFX will bring the commissions down if you do size, but they'll never compare to an institutional solution if you do the same volume. There will always be lower cost solutions if you do size, until they change their bussiness model (which might be never).

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Quoting Bruno

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Dan, welcome back. Many thanks again for your great posts.

One important question - do I have some chance to scalp with account <25.000USD? I read only how EFX is expensive and etc...Yes I still overtrade and comm. eat my gains...

Many thanks Bruno

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Quoting Stan

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The easiest and best way to get your wife to trade the rainbow is to show her what the rainbow has done for you.
If it hasn't done anything for you yet, she has no reason to want to trade the rainbow.
I speak from experience. My wife is now starting to incorporate the rainbow into her method, and soon will probably leave her other method behind her.
The best way is not to tell them it is right...we must show them.

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Quoting Poocher

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I wanna FOK.
Sounds like Fill Or Kill is scalpers heaven.

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