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Part Time Wealth Building Trading System - Daily Scalping

  • #81
  • Jan 30, 2007 2:59pm Jan 30, 2007 2:59pm
If the purpose of the daily scalping system is to take smaller profits on a daily basis, wouldn't it be a good idea to have some kind of take profit level?

I was up about 80 pips on the GBP/USD last night before it completely reversed and ended up back where i started. 80 pips equals two stop outs.

Also, per the rules, it says to close the position at the end of the following day. Should we close whether we are in profit or not?
  • #82
  • Jan 30, 2007 3:28pm Jan 30, 2007 3:28pm
I use a TP on the daily system of 60 pips for the GBP/JPY on my initial entry. I was able to capture 60 pips last night doing so.

If that's stopped out, I tack the 40 pips I lost onto that for an even 100 TP on the next trade. The odds of that being hit are slim in one day's time, but it does capture any spikes in our favor.

I close out my trade as per usual at the end of the day, regardless.
  • #83
  • Jan 30, 2007 3:38pm Jan 30, 2007 3:38pm
What is TP?
Quoting MillerHighLife
I use a TP on the daily system of 60 pips for the GBP/JPY on my initial entry. I was able to capture 60 pips last night doing so.

If that's stopped out, I tack the 40 pips I lost onto that for an even 100 TP on the next trade. The odds of that being hit are slim in one day's time, but it does capture any spikes in our favor.

I close out my trade as per usual at the end of the day, regardless.
"Every battle is won before it is ever fought." - Sun-tzu, The Art of War.
  • #84
  • Jan 30, 2007 3:43pm Jan 30, 2007 3:43pm
TP = Take Profit.
SL = Stop Loss.

TP closes out a trade when you reach a specified level of profit, and a SL closes a trade when a certain level of loss is reached to prevent any further losses.
  • #85
  • Jan 30, 2007 5:02pm Jan 30, 2007 5:02pm
Thank you.
Quoting MillerHighLife
TP = Take Profit.
SL = Stop Loss.

TP closes out a trade when you reach a specified level of profit, and a SL closes a trade when a certain level of loss is reached to prevent any further losses.
"Every battle is won before it is ever fought." - Sun-tzu, The Art of War.
  • #86
  • Jan 31, 2007 9:09pm Jan 31, 2007 9:09pm
Trading the GBP/USD and GBP/YEN. Usually they trail together, but here i am long one pair and then short the other.....3 very strange daily bars so far.

If you are positive this week, you will be positive most weeks when the normal kind of action takes place.

Jim No
  • #87
  • Feb 1, 2007 4:35pm Feb 1, 2007 4:35pm
thanks for the new method of trading tk,
im starting to trade live with this next week,
ive got vantage point software and i am going to use the predictions of vp to back up your system,
im not going to enter trades that the vp software is oppose to and i ,ll let you know if this is a tool others can benefit from.
i will be using weekly and daily methods.
thanks to everyone in this thread for the help to newbies like me.
gb
  • #88
  • Feb 1, 2007 6:58pm Feb 1, 2007 6:58pm
Hey Guys,

You all may be aware of the information that Vegas has written. But I was reading his word doc for the Vegas II system last night. He has some interesting probability statements about the Cable. He said back in the 80s he was a pit trader doing a similar strategy with the USD/CHF. He would simply buy in previous directional close and keep a 15 pip window. In other words, stop and reverse at 15pips. He said almost every day he would get between 50-100 pips profit. If someone has the screen time to readjust the orders, then as long as the daily range is good, its common sense that you'll win this way.

Also the probabilities about if price moves 30 pips above or below open, then 50% chance it won't go back to opening price. With 45 pip above or below the chance 75%. Also with Cable there is a 90% chance that any given day will have a range of at least 100pips.

I'm kind of rambling here, but if you haven't already, you should read this document. It can only shine more light on the daily scalp.

I am considering on my days off doing a 15 pip stop and reverse deal and close out at the end of night or TP at 100. I just don't have the screen time to be this attentive on most days.

Ben
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  • #89
  • Feb 2, 2007 1:28pm Feb 2, 2007 1:28pm
Quoting Benjo
Hey Guys,

You all may be aware of the information that Vegas has written. But I was reading his word doc for the Vegas II system last night. He has some interesting probability statements about the Cable. He said back in the 80s he was a pit trader doing a similar strategy with the USD/CHF. He would simply buy in previous directional close and keep a 15 pip window. In other words, stop and reverse at 15pips. He said almost every day he would get between 50-100 pips profit. If someone has the screen time to readjust the orders, then as long as the daily range is good, its common sense that you'll win this way.

Also the probabilities about if price moves 30 pips above or below open, then 50% chance it won't go back to opening price. With 45 pip above or below the chance 75%. Also with Cable there is a 90% chance that any given day will have a range of at least 100pips.

I'm kind of rambling here, but if you haven't already, you should read this document. It can only shine more light on the daily scalp.

I am considering on my days off doing a 15 pip stop and reverse deal and close out at the end of night or TP at 100. I just don't have the screen time to be this attentive on most days.

Ben

hi ben,
could you just run through how to trade this 15 pip system,
am i right in thinking -
1 . you open your daily trade opposite of previous days close with 15 pip stop loss and reverse.
2 do this untill end of day.

question - when would you take profits or do you let it run till end of day?

thanks gb
  • #90
  • Feb 2, 2007 3:09pm Feb 2, 2007 3:09pm
  •  Trader#0000
  • | Status: Unregistered Trader
15 pips is nothing for cable, I think a bigger SL is more appropriate
  • #91
  • Feb 2, 2007 11:28pm Feb 2, 2007 11:28pm
Quoting ForexDude2
15 pips is nothing for cable, I think a bigger SL is more appropriate
Dude your right. But also not much to lose. If you lose it 4 times in one day and TP at 100 above or below opening, then you still would profit between 45-50 points depending on if your first order was the right direction or if you ended up with the reverse direction.

100 pip TP minus (15pip SL times 4) equals 55 pips

the thing you have going for you is the daily range. With the small SL, its just a place to stand still and let the market move away from you.

Just my thought today. They seem to change...hehe

Ben
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  • #92
  • Feb 2, 2007 11:42pm Feb 2, 2007 11:42pm
Quoting barney
hi ben,
could you just run through how to trade this 15 pip system,
am i right in thinking -
1 . you open your daily trade opposite of previous days close with 15 pip stop loss and reverse.
2 do this untill end of day.

question - when would you take profits or do you let it run till end of day?

thanks gb

GB, howdy,

This is just an idea right now, but when I try it would be similar to TK daily method. 1. buy in the same direction as previous day's close not opposite. And with a 15 pip stop and reverse. You have to be available to reset this each SL, which I think could be often. 2. Because you are almost certain a decent daily range I would TP at 100 above or below opening. If it doesn't make it then just close at end of day. If it surpasses 100 there is a decent chance it will retrace back a little any way. So a TP in my opinion uses the statistics to give you an edge.

15 SL is somewhat arbitrary. You could do ten or 20. The point is that if you are certain to range 100 or more pips most days, then the odds are in your favor to straddle the opening.

I could be wrong about this. But the logic appears to work with the statistics that the Vegas II document contains. I think the part that requires attention is resetting SL and reverses.

Ben

ps doing a 40 sl is fine, because after you go 45 in one direction there is a 75% chance its not going back down to opening price. However if you guess the wrong direction from the begining, you are taking that loss in full. Doing a small SL gives you the chance to be wrong or right several times for limited risk. Just my thoughts.
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  • #93
  • Feb 3, 2007 12:10am Feb 3, 2007 12:10am
What time is 2400 GMT in pacific time? I live on the west coast...

SO you immediately enter the trade on this time? thnx..
  • #94
  • Feb 3, 2007 12:13am Feb 3, 2007 12:13am
2400GMT is the close of the bar. whatever time that is normally in your part of the world.

http://www.timeanddate.com/worldclock/

this will help. at the very bottom it correlates the GMT time.
  • #95
  • Feb 3, 2007 12:24am Feb 3, 2007 12:24am
So this starts at 10:17 pm for me. I guess this system does not work for me because I do not want to stay up all night... Any comments?
  • #96
  • Feb 3, 2007 4:12am Feb 3, 2007 4:12am
turk87
pacific time is GMT -8 hours... so 24:00 GMT (close) is 16:00 pacific time.
4pm... place your orders... set some alarms to wake you up if stops get triggered, or as you say, find something that suits you better.

i have noticed most of the time from 24:00GMT through until Europe open, not too much happens. that's around 11pm Pacific and the major moves occur at New York open, whats that, noon? 12:00pm? this is what i've noticed of late on the GBP/USD.

again, if the frequency that you need to watch the market doesn't suit you, there are plenty of great simple strategies out there that can work for you. remember a lot of strategies are profitable, the individual's MM and discipline are what determines the end result.
  • #97
  • Feb 3, 2007 6:36am Feb 3, 2007 6:36am
  •  Trader#0000
  • | Status: Unregistered Trader
Hey guys, check this out: http://forexfactory.com/showpost.php...2&postcount=11

There's some statistics about Cable. Could be useful for a daily straddle system.
  • #98
  • Feb 3, 2007 12:23pm Feb 3, 2007 12:23pm
thanks ben this could well suit my style of trading,
we may need to tinker with it a little but looks promising.

gb



Quoting Benjo
GB, howdy,

This is just an idea right now, but when I try it would be similar to TK daily method. 1. buy in the same direction as previous day's close not opposite. And with a 15 pip stop and reverse. You have to be available to reset this each SL, which I think could be often. 2. Because you are almost certain a decent daily range I would TP at 100 above or below opening. If it doesn't make it then just close at end of day. If it surpasses 100 there is a decent chance it will retrace back a little any way. So a TP in my opinion uses the statistics to give you an edge.

15 SL is somewhat arbitrary. You could do ten or 20. The point is that if you are certain to range 100 or more pips most days, then the odds are in your favor to straddle the opening.

I could be wrong about this. But the logic appears to work with the statistics that the Vegas II document contains. I think the part that requires attention is resetting SL and reverses.

Ben

ps doing a 40 sl is fine, because after you go 45 in one direction there is a 75% chance its not going back down to opening price. However if you guess the wrong direction from the begining, you are taking that loss in full. Doing a small SL gives you the chance to be wrong or right several times for limited risk. Just my thoughts.
  • #99
  • Feb 3, 2007 3:07pm Feb 3, 2007 3:07pm
Quoting ForexDude2
Hey guys, check this out: http://forexfactory.com/showpost.php...2&postcount=11

There's some statistics about Cable. Could be useful for a daily straddle system.

Dude thanks for the cool post. Those numbers look pretty accurate. It may be true that the overall trend might not change after 70pips for ex., but about 1% of the time. However, that doesn't mean the close of the day will be above 70pips. Just the trend will stay above opening price.

I'm sure you are aware, I just wanted to point that out for others.

Ben
{ Links Removed }
  • #100
  • Feb 4, 2007 2:04pm Feb 4, 2007 2:04pm
This last week the weekly method entered a challenging market due to ranging conditions. The weekly method looks great. However does anybody agree that this daily method might be less affected by the trend/range cycle of the market due to the shorter term nature of it's entry and close time. It makes sense that although the market does cycle between ranges and trends, every trading day has a range of its own that we can take advantage of regardless of what the longer term conditions are. Basically I'm trying to decide which method to begin using first, the weekly method or the daily. I am looking for some advice. I think both methods are great.
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