Part Time Wealth Building Trading System - Weekly Scalping

Quoting tkimble

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Quite frankly, since I begain contributing to this forum my time has been somewhat constrained but the effort is worth the price. I enjoy learning and sharing.

A little bit about myself. I have expended many years in school (undergrad, grad and post grad and doctorate candidacy) and was never taught how to make money which is why most of us endeavor to achieve higher degrees of formal education. I am very qualified for any opportunity in my particular profession but the focus with employment is to make someone else a boat load of money. So, i decided to learn how to make money and sought out some of the best traders that I could find while working in NYC. These people taught me plenty but I promised myself that I would likewise endeavor to try to make a difference in someone's life by sharing enough information to allow them to make money. So, that is why I enjoy this forum and other avenues of departing trading information. I likewise continue to enjoy learning from others which is a personal unquenchable thirst. Just the way I was born.

OK, so that is why managing my time as of late has been a bit challenging.

I generally go to sleep about 1AM EST and awaken about 6 - 630 AM EST. My mind is constantly thinking about the market. Do not know why, but just do. I like the idea that I can outsmart some of the best trading minds and institutions on earth from time to time. They also have there share of outsmarting me too.

Stop and think about the power of knowledge. If there is someone that has read this thread, they have inturn been provided maybe with an opportunity to turn their whole life into something that may not have been possible otherwise. In my mind, that is a powerful thing. This may seem a bit hokie to some, but this is the way I think...

I hope somewhere in this rant I have answered your question...

Happy Trading,

Tkimble

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Quoting ut2DaMax

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I also want to thank you! You have opened up my mind to what I can do here with Forex. Your weekly method is one of the very best. I cannot thank you enough for sharing!

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Quoting grajo

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However, being a man of faith, I will continue to demo this system for another month and if I can come close to the +150 pips/week after all the stops, I will then will go live with micro lots using Dial's MM, and will trade the Weekly Method strictly with no changes or discretion.

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Quoting ut2DaMax

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and thanks for your input. I manually checked GBP/USD and it proved very profitable in 2006. IMO There are also a lot of viewers on a daily basis that never log in. Hey they are all in for a treat. This is a very good Method thanks to tkimble! IMO

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Quoting grajo

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For those of you that followed this strategy exactly this week, with no deviation from TK's rules, can you please tell me how many times you were stopped out before catching the weekly short trend?

The reason I'm asking is that my initial long at the beginning of the week was stopped out, but then MT4 (from StrategyBuilder FX) totally screwed up and I lost all my other pending orders, and also closed out orders from previous weeks mysteriously appeared as "open" again.....WEIRD!!

So...I'm pretty sure that there were "2" stops this week (possibly 3). Can someone confirm????

I finally caught the short trend at 1.9744 and closed out this PM at 1.9597 for 147 pips, minus however many (30) pip stops were hit.

Thanks for the help

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Quoting grajo

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Thanks, and you know what? I have not backtested this (as a newbie, I'm not even sure I even know how to do it correctly), but looking at TK's Risk Mgmt spread sheet, I kind summized for myself that 150 pips per week probably is a little too much too expect on an ongoing basis (just a hunch on my part - but no concrete evidence). And making over US 13K a week after say 35 weeks (according to his Risk Mgmt spreadsheet), is also probalby a little unrealistic. (then again...you never know....)

But even if it was only around 100 pips a week, it would still be pretty good if you let your compunding work for you and followed good MM and Risk parameters. I agree with you and think that this contribution by TK to the Factory is another great and generous offering and that anyone who wants a very simple, easy to follow system more in line with swing trading is in for a treat if they have the discipline (there's that word again!!!) to follow it.

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Quoting permanentjaun

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I'll go ahead and say it, although it has been mentioned before.

I don't see the point in waiting for the 50 pip trigger. I would say the 50 pip trigger is mildly useful, but from considering that there seem to be several stop outs anyways in the week I don't think it does much help. This is because the system is not designed to try and predict reversals, but IMO using a straddle trigger is trying to do just that. Therefore the straddle is hurting the system.

Waiting 50 pips from any current point means nothing except we are now 50 pips away from where we began. IMO this actually decreases profits. Waiting for the initial 50 pips cuts into the range by a tremendous amount. Even if the week is 500 pips positive that is still 10% of the range gone. If it's only a 250 positive move, still pretty strong IMO, then the 50 pip trigger is 20% of the total move. It cuts into our potential profits and also makes our trades riskier IMO. This is because as price moves further from the open it becomes more oversold or overbought. This is why we don't have many 1000 pip weeks since there need to be retracements. So by waiting for the 50 pips we are making it harder to profit more from each trade. This is why we don't use 100 pip straddles. How much more movement can we expect from the week after 100 pip straddle?

That is why I don't see the point in using the straddle triggers. Price will always move from any price 50 pips. We don't necessarily need to wait for the trigger. If we don't use the trigger then we will be stopped out sometimes yes, but we are also stopped out with straddle triggers as well. I think using the triggers is wasting those crucial 50 pips though. Think of it this way. Instead of the 50 pip trigger telling us when to get in a trade; have it tell us when to get out of the trade and reverse position.

It's like a weekly range method. We don't expect weekly candles to have shadows in the opposite direction of the trend for the week to be 100 pips. So therefore, if you enter a trade at the beginning of the week with a 100 SL then most likely your trade will not get stopped out unless you are on the wrong side of the trend. If you are on the right side of the trend you are able to bank those 100 pips as profit instead of neutral ground that you don't take advantage of. The risk is that now you can also lose 100 pips that you wouldn't normally lose if you are not in the correct direction of the trend. I don't think this matters with tkimbles method though because the original 50 pip straddle is abandoned once one of the triggers is hit. At that point it trades in the same manner I am discussing by letting our SL indicate what direction our trades should be. I am referring to moving the opposing trigger to the closing price of the previous week.

Now, what happens if you miss a buy/sell signal using tkimbles original weekly scalping method? For example, say you should have entered at 1.1000 for a long with SL at 1.0970. Price is now at 1.1050. If you considered the signal to be correct in determing the trend for the week then you would buy at 1.1050, but where do you place your SL? To follow the method correctly you would still have to place your SL at 1.0970 and not 1.1020. This is because of the same reason why tkimble doesn't use a trailing or stepped SL. We expect price to move away from our SL such that a trend will not be threatened by it.


I think this method is similar to people using hedging baskets. Eventually they need to reset their baskets to utilize the new margin they have accumulated. There is a science in doing so however as each time they do so they lose the spread which can be very costly to carry traders. In theory tkimbles method is the same because we could enter a trade and let it run forever if we are in profit. Meaning if we entered at 1.1000 without moving our SL then we could be in that trade forever so long as our SL wasn't hit, but we need to exit the trade eventually to utilize the new margin we've made as well as to be able to profit on retracements. For example, we're in at 1.1000 and price ran to 1.5000, but will now retrace to 1.4000. The trade may not produce any profit for us in the next month unless we reset the system to allow it to enter a short trade from 1.5000 to 1.4000. That is why this is called the weekly method. Basing the system on time gives us a standard reset time. The difference for our reset time is instead of caring about losing the spread cost like hedgers, our reset time places us back into a tight range where we could get stopped out several times before price moves to a new zone away from our SL.

How often do we get stopped out at the beginning of the week? 1-3 times within a day or two and then all of a sudden our trades turn profit and run longer. We can probably expect this to happen always since every new week, i.e. reset time, moves our SL closer to current price.

Tkimble is already utilizing this method in his daily method. I just think it wouldn't be very hard to implement in the weekly method either. It's a 50/50 shot at the beginning of the week. You could use something simple such as reading the RSI or MACD to determine the direction of your opening trade. Or you could just take the color of fridays candle to tell you current momentum. Something simple is all you need. I just think giving up those early pips is not worth it. The opening of the week on sunday is usually pretty slow and easy to tell the general direction, so it could also be a early cushion such that instead of the SL being 30 or 50 pips away it slowly builds up to being 80-100 pips away. It could help a lot in preventing getting whipsawwed several times early in the week.

Just some thoughts. Matt

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Quoting tkimble

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Well said. I concur. This is why the daily scalping system was developed. You do stand a better chance of profiting within the 100 PIP straddle if you choose a direction from the opening bell. I was only doing this with the daily system but will complement it with the weekly system beginning this week.

Happy Trading,

Tkimble

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