Part Time Wealth Building Trading System - Daily Scalping | Forex Factory

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Part Time Wealth Building Trading System - Daily Scalping

  • #1
  • First Post: Edited 9:54am Jan 22, 2007 9:18am | Edited 9:54am
Daily trading rule are as follows:

1. Create daily chart on any pair

2. Enter Buy/Sell order upon Sunday or Monday open at 2400 GMT. Order should be consistent with previous days trend (i.e; Previous day up, Place "Buy" market order, Previous day down, enter "Sell" market order at open)

2. Place opposite side trade 40 PIPS aways from initial market order (i.e.; if initial order was a Buy Place immediate Sell side order 40 PIP away from initial market entry)

3. If same trend for three consecutive days, place next days open order opposite of previous three days trend. i.e; If Monday, Tuesday and Wednesday were up days, Thursday would be a Sell order.

4. Use 40 PIP stops on all orders.

5. Close between 2300 and 2400.

6. Repeat trade rules at 2400 GMT.

No straddling the price entry. Enter market immediately with 40 PIP reversal companion order...

Happy Trading,

Tkimble
  • #2
  • Jan 22, 2007 9:47am Jan 22, 2007 9:47am
I have started experimenting with this concept about a month ago and got some interesting facts on Eur.I believe that the market is event driven and these events are reacted on by traders wich is psycologically driven to either buy or sell.( If this sound strange English is not my first language).
By just looking at the Eur you will notice that if Monday/ Tuesday the same then Wednesday normally reverse. Also nearly 60% of bull/bear candle continue the following day in the same direction. This is on the Eur
Wich pair are you referring to?
  • #3
  • Jan 22, 2007 9:51am Jan 22, 2007 9:51am
Ah, the Daily strategy makes its appearance after much anticipation!

Have you backtested this one, tk? If so, how did it fare in win % and overall pip P/L?
  • #4
  • Jan 22, 2007 9:55am Jan 22, 2007 9:55am
Quoting Ebenst
I have started experimenting with this concept about a month ago and got some interesting facts on Eur.I believe that the market is event driven and these events are reacted on by traders wich is psycologically driven to either buy or sell.( If this sound strange English is not my first language).
By just looking at the Eur you will notice that if Monday/ Tuesday the same then Wednesday normally reverse. Also nearly 60% of bull/bear candle continue the following day in the same direction. This is on the Eur
Wich pair are you referring to?
This system works in all markets but results will differ according to market volatility...
  • #5
  • Jan 22, 2007 9:57am Jan 22, 2007 9:57am
Quoting MillerHighLife
Ah, the Daily strategy makes its appearance after much anticipation!

Have you backtested this one, tk? If so, how did it fare in win % and overall pip P/L?
No. I very seldom backtest, only paper trade new systems. I do not publish my results. Make it your own experience...

Tkimble
  • #6
  • Jan 22, 2007 11:06am Jan 22, 2007 11:06am
Quoting tkimble
No. I very seldom backtest, only paper trade new systems. I do not publish my results. Make it your own experience...

Tkimble

for you. Amazing Methods that we can work and re-work until they work for us. I am still paper trading and observing how these pairs do with this Method, weekly,daily. Live observance beats any backtesting. Although with backtesting you can narrow down the pairs and Methods that work the best. And yet until you observe results live ... it is not as real and as sure.tkimble I know you have this down and are making a BUNCH A CASH on your other methods! LOL .... Thanks for sharing! IMO
  • #7
  • Jan 22, 2007 12:12pm Jan 22, 2007 12:12pm
Quoting ut2DaMax
for you. Amazing Methods that we can work and re-work until they work for us. I am still paper trading and observing how these pairs do with this Method, weekly,daily. Live observance beats any backtesting. Although with backtesting you can narrow down the pairs and Methods that work the best. And yet until you observe results live ... it is not as real and as sure.tkimble I know you have this down and are making a BUNCH A CASH on your other methods! LOL .... Thanks for sharing! IMO
From my perspective, one month of paper trading is more valuable then all the back testing in the world.

Happy Trading,

Tkimble
  • #8
  • Jan 22, 2007 12:56pm Jan 22, 2007 12:56pm
did you use the system on cable? because 40 pip stop on every pair sounds a bit strange because of different volatilities!
  • #9
  • Jan 22, 2007 1:15pm Jan 22, 2007 1:15pm
Quoting FXfreak
did you use the system on cable? because 40 pip stop on every pair sounds a bit strange because of different volatilities!
Pardon my ignorance but I do not know what cable is? I use FXCM for all my trades with the assumption that Cable is an equivalent trading platform...

Tkimble
  • #10
  • Jan 22, 2007 1:28pm Jan 22, 2007 1:28pm
cable is sterling gbp/usd pair
  • #11
  • Jan 22, 2007 1:33pm Jan 22, 2007 1:33pm
Cable=GBP/USD
  • #12
  • Jan 22, 2007 1:33pm Jan 22, 2007 1:33pm
cable is your favorite pair, the gbp/usd. it is called cable because back in the days, to trade this pair, the orders were transmitted literally through the transatlantic cable buried under the oceans to the Uk.

Quoting tkimble
Pardon my ignorance but I do not know what cable is? I use FXCM for all my trades with the assumption that Cable is an equivalent trading platform...

Tkimble
  • #13
  • Jan 22, 2007 1:38pm Jan 22, 2007 1:38pm
Quoting gtketum
cable is your favorite pair, the gbp/usd. it is called cable because back in the days, to trade this pair, the orders were transmitted literally through the transatlantic cable buried under the oceans to the Uk.
Ah. Thank you. Do not understand why people speak in such cryptic terms. I like things very simple.

But, while we are on the subject did you know that those under sea cables were actually tapped by American submarines during WWII and I am sure today for intelligence purposes? Just some trivia...

Happy Trading,

Tkimble
  • #14
  • Jan 22, 2007 1:53pm Jan 22, 2007 1:53pm
Tkimble,

Does the "3 days trend" stretch along forever,or is it only for the Mon-Fri period?What I mean - If we have wed,thur and fri bullish,do we place sell on mon and +40 buy,or we count the 3-day trend only from mondays,so we place buy(or sell) according only to the friday bar?
Thanks!
  • #15
  • Jan 22, 2007 1:57pm Jan 22, 2007 1:57pm
Quoting g_roussev
Tkimble,

Does the "3 days trend" stretch along forever,or is it only for the Mon-Fri period?What I mean - If we have wed,thur and fri bullish,do we place sell on mon and +40 buy,or we count the 3-day trend only from mondays,so we place buy(or sell) according only to the friday bar?
Thanks!
No. I used Monday, Tuesday and Wednesday as an example. Can be any three day trend...

Tkimble
  • #16
  • Jan 22, 2007 2:04pm Jan 22, 2007 2:04pm
What about this sequence - mon,tue,wed,thur,fri - all bullish.What happens on friday?You place orders according to tue,wed,thur(3-day trend),or you need new 3 days,(that means you don't count the trend mon-wed,and place orders for friday according to thursday)?
Thanks for the answers!
  • #17
  • Jan 22, 2007 2:10pm Jan 22, 2007 2:10pm
Just an additional thought.

The Daily Scalping system is what I refer to as a "Natural Market Entry" system. On any given trade, you have a 50% chance of being profitable or unprofitable regardless of the system. With this system, you are using that chance at the very beginning of the market action. Rather than not participating in the market during a self imposed 50 or 100 PIP entry straddle, you can particapate immediately with the same entry risk as any other trade.

The great thing about the daily system is you basically eliminate the wait for your 50 - 100 PIP entry straddle to be activitated hence reducing your risk of being stopped out as frequently.

For my trading style the "Natural Market Enty" is great when combined with the weekly charts. The big obvious difference is when you take your profits. Hence, taking small daily profits or one larger weekly profit. Again, do what makes you feel comfortable.

I hope this is understandable...

Happy Trading...

Tkimble
  • #18
  • Jan 22, 2007 2:16pm Jan 22, 2007 2:16pm
Quoting g_roussev
What about this sequence - mon,tue,wed,thur,fri - all bullish.What happens on friday?You place orders according to tue,wed,thur(3-day trend),or you need new 3 days,(that means you don't count the trend mon-wed,and place orders for friday according to thursday)?
Thanks for the answers!
The longer consecutive daily trends prevail, the greater the chance that the next days trend will be reversed. I always reverse after three consecutive trending days. I may get stopped out and be reversed but the odds are greately in my favor when orders are placed opposite of the three consecutive daily trends...

Happy Trading...

Tkimble
  • #19
  • Jan 22, 2007 2:34pm Jan 22, 2007 2:34pm
TKimble,

Thanks for posting this variation of your Day Scalping system (I'm sure you'll have started another good thread along with your Weekly and Trending methods). Quick question...

In your Weekly and Trend methods, you mentioned you don't take news announcements into account since you're looking for longer term trends/channels. For this daily method, do you modify your strategy for important news releases (that affect the GBP/USD)?

Thanks!
  • #20
  • Jan 22, 2007 3:25pm Jan 22, 2007 3:25pm
Quoting nitro4x
TKimble,

Thanks for posting this variation of your Day Scalping system (I'm sure you'll have started another good thread along with your Weekly and Trending methods). Quick question...

In your Weekly and Trend methods, you mentioned you don't take news announcements into account since you're looking for longer term trends/channels. For this daily method, do you modify your strategy for important news releases (that affect the GBP/USD)?

Thanks!
News does not make the markets, the markets make the news.

I ignore the news completely becuase all news will immediately be translated into price action. I like simplicity.

Why read the news and try to anticipate how thousands of other traders are going to respond to the news? From my vantage point, this is insanity and cannot logically sustain a profitable trading career. But again, that is my approach. Others may think differently.

So, in essence, I focus on the news through immediate price actions but I do not listen to or read anything about the markets. Have you ever met a trader, read the writings of a trader or tried to base your trading on chasing the news? For me, it is impossibly complicated and results in more questions than answers. This violates everything about simplicity that is important to my trading style...

Happy Trading,

Tkimble
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