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Linuxtroll Simple Scalping

  • #2,481
  • Oct 16, 2007 4:07pm Oct 16, 2007 4:07pm
I am a big fan of Gadwin PrintScreen 4.3.
Someone else had recommended it on this thread and I thank them. One button screenshots of both the full screen OR just the window that's in focus.

I love the TIME/DATESTAMP feature that Gadwin has too. I post screenshots to my own blog and the stamp helps me remember which chart captures go with which posts.

Just google it. It's free.
  • #2,482
  • Oct 16, 2007 4:08pm Oct 16, 2007 4:08pm
I notice that many traders on the site perfer to pay commissions over pip spreads.

Many are using EFX. 0 spread but are paying commissions. I would like to some insite on this topic please.

Thanks,

Dee
  • #2,483
  • Oct 16, 2007 4:30pm Oct 16, 2007 4:30pm
Quoting prosperfx
Here is a screen shot of how I have arranged the Oanda and EFX windows. From my limited understanding, the "Level II" window shows pending orders from the various banks and liquidity providers for EFX. The pending short orders are on the left, and long orders on the right. Can someone confirm or correct me there?

I am still wrapping my head around the power there, but to me it does seem valuable to see the pending orders, including quantities at each price level. I do not have enough experience with it to say this concretely, but it seems that we can deduce a change, or continuation, of momentum based on this pending order information before it is reflected in the price.

Can someone with more experience please clarify?
Actually, the left side is the pending buy orders on the market and the right side is the pending sell orders on the market. In order for you to execute your trade, you must match your buy trade with a seller (on the right) or your sell trade with a buyer (on the left). Naturally, you want the best prices available, so the ask price is basically the lowest pending sell order, and the bid price is the highest pending buy order.

Level II or "open book" quotes have been around a couple of decades in stocks/commodities, but they were only available to floor traders (these are typically the liquidity providers for any market) until a little over five years ago. In the Forex market, only ECNs can provide this data because dealing desks requote the price in order to throw in their spread commissions, and essentially this renders the data as useless.

There are scalpers in the futures market who look at nothing but the Level II quote (aka: "reading the tape"). They may glance at an hourly or daily chart at the beginning of the day to get a general idea of a trend, but they use no charting at all while trading. Some are pretty successful at it, but I found it to be too quick for me (in fact, I'm starting to trade the rainbow on 10 sec, because 5 sec is too fast).

One tip I picked up from a guy who "reads the tape" is that someone might flash a ridiculously huge order (in one example, it was 2000 contracts of S&P500 E-minis, which requires at least $3 million cash in your account) for 1 or 2 seconds to try to move the market one tick. If the market moves one tick in that direction (ie: the order was on the bid, and this moved the commodity up one tick) after the order was placed, it's likely to be biased in that direction.

However, I don't use an ECN broker yet, so I dunno if its the same in FX. I'm thinking of opening an acct. with IB at the beginning of next year.
  • #2,484
  • Oct 16, 2007 4:50pm Oct 16, 2007 4:50pm
Quoting bluebuddha
Actually, the left side is the pending buy orders on the market and the right side is the pending sell orders on the market. In order for you to execute your trade, you must match your buy trade with a seller (on the right) or your sell trade with a buyer (on the left). Naturally, you want the best prices available, so the ask price is basically the lowest pending sell order, and the bid price is the highest pending buy order.

Level II or "open book" quotes have been around a couple of decades in stocks/commodities, but they were only available to floor traders (these are typically the liquidity providers for any market) until a little over five years ago. In the Forex market, only ECNs can provide this data because dealing desks requote the price in order to throw in their spread commissions, and essentially this renders the data as useless.

There are scalpers in the futures market who look at nothing but the Level II quote (aka: "reading the tape"). They may glance at an hourly or daily chart at the beginning of the day to get a general idea of a trend, but they use no charting at all while trading. Some are pretty successful at it, but I found it to be too quick for me (in fact, I'm starting to trade the rainbow on 10 sec, because 5 sec is too fast).

One tip I picked up from a guy who "reads the tape" is that someone might flash a ridiculously huge order (in one example, it was 2000 contracts of S&P500 E-minis, which requires at least $3 million cash in your account) for 1 or 2 seconds to try to move the market one tick. If the market moves one tick in that direction (ie: the order was on the bid, and this moved the commodity up one tick) after the order was placed, it's likely to be biased in that direction.

However, I don't use an ECN broker yet, so I dunno if its the same in FX. I'm thinking of opening an acct. with IB at the beginning of next year.
Thanks BB, that is helpful! Particularly after reading the narrative of Jesse Livermore and his experience "reading the tape". Again, I don't have a whole lot of experience yet using this tool in EFX, but will report back as I continue using it as a tool in my Rainbow Scalping arsenal!

Anyone else have any other experience with it up to now?
  • #2,485
  • Oct 16, 2007 5:34pm Oct 16, 2007 5:34pm
Quoting prosperfx
Thanks BB, that is helpful! Particularly after reading the narrative of Jesse Livermore and his experience "reading the tape". Again, I don't have a whole lot of experience yet using this tool in EFX, but will report back as I continue using it as a tool in my Rainbow Scalping arsenal!

Anyone else have any other experience with it up to now?
Yeah, Livermore lived before Level II quotes existed (Level II is an invention of the NASDAQ, which opened in 1971). In those days, you literally read orders coming off a ticker-tape, hence the name "reading the tape". Basically the name stuck to any type of trading where you look at nothing but pending and recently executed orders.
  • #2,486
  • Oct 16, 2007 5:48pm Oct 16, 2007 5:48pm
Quoting bluebuddha
look at nothing but pending and recently executed orders.

DOM + Current Rainbow
  • #2,487
  • Oct 16, 2007 6:29pm Oct 16, 2007 6:29pm
Hi Linuxtroll,

enjoying this thread,

Until now i have only ever looked at trading fx on a daily and 4 hour time frame. I have opened a account with EFX. Getting stuck into the screen time using your advised 10-240 set up.

thank for all your advice and patience in this thread. I can see the promise this method offers, but screen time and alot of practice with notes taken on successful entries and set up with time zones to trade in is a must!

cheers for opening my eyes.
  • #2,488
  • Oct 16, 2007 7:39pm Oct 16, 2007 7:39pm
Quoting prosperfx
As an aside, what tool does everyone use for screen shots? I just used the "Print Screen" key and Paint, and my image is obviously lacking in quality compared to the great screen shots I have seen on this thread.

Sorry for the simple question, but any direction?
I use print screen & save as .PNG - it is much better for text based image then jpg
  • #2,489
  • Oct 16, 2007 8:14pm Oct 16, 2007 8:14pm
Alright, I have put together a brief elplanation and some charts of how I do it on the 1 min chart.

My methods are no different the LT’s methods however I have along with the help of a good
friend of mine created an indicator which shows the optimum entry points based on the
rainbow. This will draw arrows on the MT4 chart at the exact point that price pierces the
MA’s (following the flame) The indicator settings are all self explanatory so I wont bore you.
Along with that I believe and use horizontal support areas to determine profit targets, trend
exhaustion, reversals, etc. You will find Camhistorical, and Camhistorical1, also Support, and
Resistance. The cam indicators use floor pivots, and camarilla pivots along with yesterdays
high and low. I was limited with buffers so they do not include the farthest pivots. Generally
it is very risky to enter past these points as it usually surpasses the days range. Support and
Resistance are indicators based on multiple timeframes highs and lows which are also
areas to watch for stalling, reversals etc.
I use signal bars mostly for the on screen information and not for the indicators although
a quick glance to see all are green or red does confirm entries. That is it for the “standard”
indicators and I am now to the point of looking for a good filter or two, more on that later.
The entries are simple, go with the arrows. I look for support or resistance close by, and
if there is room to breath. This may seem like a ton of lines at first but i know what each
style and color is and look for clusters for stronger resistance. If it is to much, dont use
support and resistance, and look for key areas on your own and draw a few lines.
MONEY MANAGEMENT! Thats where it is at. I watch 4 pairs, GBP/USD, EUR/USD, EUR/JPY,
USD/JPY. My spread is 2 pips on all with G/U being the exception of mostly 3.
BREAKEVEN. I move my stops to breakeven at 5 pips PROFIT, not 5 from entry, no exceptions.
The name of the game is preserve capitol. I could care less if it turns right around and hits
my stop, I didnt lose anything. There will be another setup in minutes. I also trail all my entries
as soon as entered, not the typical built in trail in MT4. I have included swiss army EA that
can do all this for you. My trail is different for each pair. For example G/U average range
as indicated by signal bars shall be 85. I take 15% of that, (85 X .15 = 12.75) and round
up (13) and add 1 for a total trail of 14. Why do I do that? I have found that USUALLY if
you havent been issued an exit signal(more work needed here) this is JUST enough room
to keep you in the bigger trend without getting stopped out. If I am above breakeven and
a new signal forms, I add to my position and watch it closely to the breakeven point and
repeat as long as I can.
What needs improvment and areas of discussion. Well an entry filter or trend exhaustion
indicator would be nice. Currently I am exploring PSAR with settings of .035, .01 and .035
, .02 and a HMA with a 15 setting. I am using the faster PSAR for an exit indicator and it has
been working pretty well and the slower as an entry filter not going in the opposite
direction. The HMA I use also as an entry filter but havent been playing with it long
enough to have a good opinion. I would love to hear opinions or ideas on this.
The other is another approach to MM. I have found that almost every trade will reach
5 pips profit. One option is to simply set a TP to 5 pips but i cant stand to see a good trade
run for much more. The other option is to close half at 5 pips and let the rest run. I think this
wouldbe the better solution but I need to get around to merging a couple EA’s to do this.
Time just wont allow you to do it manually watching multiple pairs.
That is how i trade the rainbow. I would love to hear opinions or suggestions on what
I have mentioned.



Todays pips total 310, this is NOT a typical day.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: gu1016.jpg Size: 244 KB
Click to Enlarge Name: eu1016.jpg Size: 242 KB
Click to Enlarge Name: ej1016.jpg Size: 224 KB
Click to Enlarge Name: uj1016.jpg Size: 209 KB
Attached File(s)
File Type: zip Cyrox.zip   74 KB | 2,030 downloads
  • #2,490
  • Oct 16, 2007 8:21pm Oct 16, 2007 8:21pm
Quoting monarch
This is my two screen setup, ........
Ken........
Ken, its nice to see you back on FF .
the image you posted were a bit blur ... can you please give us a better glimp on your setup .
  • #2,491
  • Oct 17, 2007 3:57am Oct 17, 2007 3:57am
To prosperfx: here is my setup, waiting to get money for bigger screen (22")

http://img87.imageshack.us/img87/715...5461ao7.th.png
I used to be schizophrenic, but now we are sane.
  • #2,492
  • Oct 17, 2007 4:25am Oct 17, 2007 4:25am
237.53 exit same price... so only lose the commission ....
it went to 237.60 before it come down ... I didnt think about closing and profit there, being carried with all today 100s pip movement. ...... but then it went up to 237.70...... hehehe.
Attached Image
  • #2,493
  • Oct 17, 2007 4:58am Oct 17, 2007 4:58am
Quoting Syafi
237.53 exit same price... so only lose the commission ....
it went to 237.60 before it come down ... I didnt think about closing and profit there, being carried with all today 100s pip movement. ...... but then it went up to 237.70...... hehehe.
Syafi, thank you for posting the trade. Today the market was not moving that fast as yesterday.

I wondered how was today's European session handled by people who were posting screens yesterday. Did not they trade, did thay took small profits or small losses? Thanks.
  • #2,494
  • Oct 17, 2007 5:13am Oct 17, 2007 5:13am
Ack...

I must have a crappy e-mail. Havent got the new zipfile at all.

Linuxtroll, is gmail good? If so then I send my gmail adress to you. No point in sending it if its not good anyway, hence asking.
Pas a pas, se va lučnh
  • #2,495
  • Oct 17, 2007 5:18am Oct 17, 2007 5:18am
the zip was CEO 1m chart setup. Its not supported by Mr Linuxtroll
  • #2,496
  • Oct 17, 2007 5:22am Oct 17, 2007 5:22am
Quoting Syafi
the zip was CEO 1m chart setup. Its not supported by Mr Linuxtroll


That is funny. I didnt catch that bit of info at all. LOL
Pas a pas, se va lučnh
  • #2,497
  • Oct 17, 2007 5:27am Oct 17, 2007 5:27am
Quoting atomz
Syafi, thank you for posting the trade. Today the market was not moving that fast as yesterday.

I wondered how was today's European session handled by people who were posting screens yesterday. Did not they trade, did thay took small profits or small losses? Thanks.
Actually I posted my bad trade there ...
so I can learn from other great scalper comment about the trade i took.

My P/L today is +40 pip...... but with lots of trade, i end up paying almost all profit to broker commission
  • #2,498
  • Oct 17, 2007 6:04am Oct 17, 2007 6:04am
maybe I'm doing something wrong, but it seems to me that trading with Oanda is much easier than trading with EFX. Oanda has now a fix spreed of 2 pips, in EFX I see 2 pips spreed 70% of time and we also have 1.6 pips to pay for commission, so most of time I have to pay 2,6 to 3,6 pips with EFX.
In a 5 pips range, with Oanda we can earn 3 net pips whilst with EFX 2,4 to 1,4.
Also, Oanda is always lagging and if you look at EFX data you can anticipate many Oanda moves. Many times I think to go back to trade with Oanda.



PS. I'm trading only High probability setup also for this reason, it's better to trade less and go for more pips per trade.

Let me know what do you think!

Thanks

Alessandro
  • #2,499
  • Oct 17, 2007 6:27am Oct 17, 2007 6:27am
Hello ,

As long as we dont have the money and the experience to play with the big boys we will count spreads and commisions.

A big boy with lot of experience needs only 30 minutes in the morning and then goes to golf.

We must make our time and build slowly experience and capital to reach this point.

So no rose petal road for anyone.

The hard thing is the discipline to sit on you hands.

Big problem.

The high probability setups are hoooooney.
Learn something difficult and earn real money for ever, a lot.
  • #2,500
  • Oct 17, 2007 6:53am Oct 17, 2007 6:53am
1 was like the news trade .. jump on retracement...
then after seeing where it went I just scratch my head.. why not jump on the long .......

2nd thought its the retracement,
3rd jump short again when it come to the earlier short entry price.
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