Linuxtroll Simple Scalping

Quoting Yuppie

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What is your usual approach? Aggressive? Conservative?

Not many people have mentioned scaling out. How do you find this? Is it mainly for psychological reason, a smoother equity curve, or does it prove more profitable?


Thanks again,

Magnus

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Quoting Yuppie

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Who is this crazy dude? ... LOL...

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Quoting monarch

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Magnus,

Personally, I take only conservative trades, I have realized that the more trades I make, the more sloppy I get.

I took 27 trades this week, and a few were not the best setups, but overall I had 5 losses averaging +1 to -7. I have kept my losses small, knowing how much easier it is to make those back. Everyone of these losses were over 6 pips profit before going against me, but I am trying to stretch the gains a little, and in the process I have taken a few hits.

Overall this week, My total wins were 22 trades for 275 pips, minus commission and losses which still kept me at 190 pips.

I have been using a scaling out for some time in my trades, which must be done carefully.

What I do is target the +6/7 pips that Linuxtroll says to watch for, but I keep a couple lots in for the extension, the key is to catch the best rainbow breakouts, which usually keeps the trade from going negative on you, I have seen most of my trades this week go for 20-200 pips beyond my initial exit.

The exit strategy for my remaining lots is +2 on EFX (breakeven), so actually the majority of the lots are profitable, but never allow yourself to lose once you in the profits, which I did 5 times this week. LOL.

Overall, the 5 second rainbow usually triggers a good entry and exit point, but if your patient and careful, you can watch the rainbow for the exit point rather then just jumping out quickly.

Ken

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Quoting monarch

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...never allow yourself to lose once you in the profits...

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Quoting monarch

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I have seen most of my trades this week go for 20-200 pips beyond my initial exit

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Quoting Yuppie

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Thank you for your detailed reply Ken. Much appreciated.

See, this is why it is good to get as many perspectives as possible. I was aiming for 10 pips a day (in reality knowing that I should get a bit more than that)... You have opened my eyes to what is possible... ... But then I do know that it is less about pip-count and more the risk undertaken and win/loss percentage...

Be careful with thinking your going to get a certain amount in each trade: I use the 5 second for Entry and Exit, and once I enter, if I see the rainbow turn into the LWMA's and the Spine, then I am preparing for an exit at that time.

I find when trading conservatively I am more focused. Like you said, more trades end up in sloppier trades. When you only pick the best, you see the setup forming awaaaay in the distance and have time to plan a strategy for that particular trade...

Scaling out is maybe something I will try. Mainly for minimising the ups and downs really... There may be psychological benefits as well...

I know Linuxtroll does not use a scale out strategy, be careful and try some testing with micro lots. This is something I have tested on the 5min, and now employing the thought with the 5 second along with STAN. I still aim for an initial profit taking in the first 6/7 pips or so, then leave a few lots for a continuation possiblity. If I take all my lots on the first and initial entry, I do not have to exit and reenter as much when the rainbow continues in the same direction, reducing the cost of commission and spreads.

This is probably the best bit of advice in the entire thread, possibly FF! I have just recently started to really grasp it and implement it. Hearing it is one thing. Instilling it in your brain is another...

Even though there are great moves, and we can look back at the rainbow and think, why didn't I get more? Well, when were in the initial stage of the trade, we cannot tell whether this move is a fakeout or just a small surge, so we must do as Linuxtroll mentions in his book, take the first quick hit of profit, and don't really worry about what is left on the table.


... Now this is something to observe!!...


Thank you again Ken,

Magnus

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Quoting Yuppie

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Keep 'em coming Brent,
Magnus

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Quoting prosperfx

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Here is the best example I have currently I do not have the supporting 5 second chart, but will post examples next week with both charts. This is the trend from today that start at around 9:00 AM EST.

Glen

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Quoting TheOne

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Truly an awesome post.
I have been using the 30sec or one min chart on MT4 looking for a cross
in a similar way then using the 4sec for entry also but it's still a work in progress.
Why am I doing this? Well I hope to make if possible two good trades for
the day before wrapping it up.
Smaller trades dont seem to be that efficient imo. LT says trade smart not
hard and I agree. I hope to trade even smarter.

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Quoting amenlo9

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hi TheOne,can u teach me how to get 30 sec chart on MT4?

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Quoting Yuppie

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I think the real challenge for me is to stop asking so many damn questions and just get on with it...


Good idea!.
I think the trouble with some of you guys is thet you can't see the forest thru the rainbow.

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Quoting wannabeatrader

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Hey guys, been in this from the beginning. Just when I think I got the hang of it, whack, someone posts their view of the rainbow and then I am second guessing myself. Here is my chart from today. I also use mt4 price feeds which are a little faster to keep me in the trade longer once in profit for an extra pip or two.

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Quoting wannabeatrader

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Just when I think I got the hang of it, whack, someone posts their view of the rainbow and then I am second guessing myself.

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Quoting monarch

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A few comments:

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Quoting Yuppie

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Thanks Ken.

I don't have a target for any particular trade. I too have my finger on the mouse incase a trade goes against me. I find that the poorer the trade is, the quicker it will let you know - so far anyway...

Interesting to know that more than one person is scaling. You doing any scaling in? Strong [1 or 5 min] trends etc...

Anyway, I will just have to see how my implementation of this method involves. Find out what works for me and what doesn't... What I am comfortable with... What I am good at... What I am not...


Thanks Ken,

Magnus

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Quoting ECO

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I think the trouble with some of you guys is thet you can't see the forest thru the rainbow.

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Quoting monarch

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Actually I have only used the Scaling out on the 5second/1minute.

On my 5 minute strategy, which I am slowly going away from, I had a 3 entry program I use, but with the changes I am making on my trading style, I will quit using scaling in.

There is occassion I will take a position on the EJ if there is a 100 or more pip move, and that trade is against the trend which I recommend staying away from and concentrate on trading the trend short period only.

Last week, the move down went over 100 pips, I took a Long, and every 20 pips I added another Lot on, overall that trade went 75 pips against me because of the unusual extended move down for over 200 pips. My result was very good overall, with profits, but there was lots of pressure on me when I seen myself down so far. LOL

I think that was the trade that has confirmed my final decision to trade a 5second, along with the 1minute trend, I am staying away from all other strategies during this week of trading, concentrating on the 5 second mainly, and trying to perfect my win/loss to 100%, using conservative entries only.

Ken

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Quoting FXSurfer

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Co-Existence!

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