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Scalping the Rainbow

  • #21
  • Aug 5, 2008 6:04pm Aug 5, 2008 6:04pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting Thierry89
Your system seems really efficient with all pairs but with a sufficient volatility.

I finally understood your technique 4xq

TP to 10 pips but the SL could be lowered to 15 pips for the pair as eur/usd for example

Your buy order at 17:44 on gbp/usd (1.9567) was a mistake, isn't it !?
SL15 may work on eur, has to be tested...with good trend and small pulbacks may work. I try to trade when is some volatility, I'm a quicker. I believe that the same as with casino gambling, the more you are in, the more chances are for losing...definetelly not an investor...those are in the purple lines
"Money is only a part of wealth" Q.
  • #22
  • Aug 5, 2008 6:10pm Aug 5, 2008 6:10pm
Does this uptrend confirmed by UT 5mn is valid for buy order or not !?
Attached Image (click to enlarge)
Click to Enlarge Name: usd-yen.gif Size: 48 KB
  • #23
  • Aug 5, 2008 6:15pm Aug 5, 2008 6:15pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting Thierry89
A profit of 15 pips might be better than 10 pips but do you think that this benefit would be feasible?

What are your trade hours ?
I found good volatility in the morning, also clear mind...from 7AM to 12 (EST), but has the danger of the NY openning and some news releases.
After the openning at 8AM and after news if they have some release until around 12-1PM when markets go flat I found to be the safest.
My server is 7 hours ahead of EST time.
"Money is only a part of wealth" Q.
  • #24
  • Aug 5, 2008 6:20pm Aug 5, 2008 6:20pm
I live in France so 8h00-18h00 (Paris) is a good trading hours for me

12-1PM is 6pm-7pm in France

And about my question above on the usd/yen uptrend !?
  • #25
  • Aug 5, 2008 6:25pm Aug 5, 2008 6:25pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting Thierry89
Does this uptrend confirmed by UT 5mn is valid for buy order or not !?
Would be. Looks like the first signal in a 1min changing trend, if the 5min confirms. Crossing the purple in the dir of the 5min trend is a good signal for me, but I think is a litlle risky...I like to see the rainbow fan out a bit
"Money is only a part of wealth" Q.
  • #26
  • Aug 5, 2008 6:31pm Aug 5, 2008 6:31pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting Thierry89
I live in France so 8h00-18h00 (Paris) is a good trading hours for me

12-1PM is 6pm-7pm in France

And about my question above on the usd/yen uptrend !?
Then I think the London sesion is better for you . Just look at the markets for that, may be even better than after NY open
"Money is only a part of wealth" Q.
  • #27
  • Edited Aug 6, 2008 9:26am Aug 5, 2008 6:36pm | Edited Aug 6, 2008 9:26am
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Money management is a very important component of a system. Once, when I was a rookie, I made 100 pips and I lost money.
Now I can make money with a 50% system.
The key is money management and I made this formula that I use with great succes:


TradeSize=AccountBalance()/1000*Risk/SL


where Risk is the precentage of your acct you are willing to risk on any giving trade and SL is the StopLoss.
It will calculate the TradeSize acording to your risk and stoploss in lots and fractions of a lot (minis)...ie..1.7 Lot
For this system I made a couple of handy scripts that will enter a trade with calculated TradeSize for 4% Risk, at SL20 and TP10 pips.
It will increase or decrease the trade size with 1 mini for each $500 in the acct.
Use them on a demo acct first and at your own risk


Good luck,
Q
Attached File(s)
File Type: mq4 01 Buy X SL20 TP10.mq4   < 1 KB | 3,018 downloads
File Type: mq4 01 Sell X SL20 TP10.mq4   < 1 KB | 3,617 downloads
"Money is only a part of wealth" Q.
  • #28
  • Aug 5, 2008 6:44pm Aug 5, 2008 6:44pm
Wednesday / 1:40 AM in France, I am tired so go to the bed

I will test the 4xq sytem tomorrow in London session

Bye and have a great end of day to you 4xq
  • #29
  • Aug 5, 2008 6:53pm Aug 5, 2008 6:53pm
interesting.. thx 4 sharing
  • #30
  • Aug 5, 2008 10:59pm Aug 5, 2008 10:59pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting Thierry89
Does this uptrend confirmed by UT 5mn is valid for buy order or not !?
Thierry, I was looking at your rainbow and I spoted 4 entries on that.
1 and 4 are breaking the resistance and 2 and 3 are breaking the MA(200)...white thick line of my rainbow template. They are all good if the 5 min trend is up, but by not seing the 5 min chart I consider #4 the best because the new fresh 1 min trend did a pulback and then continued upward breaking the first peak resistance (top white horizontal line). I don't consider it a trend until it does that, otherwise may be just a large pulback of the down trend.

Happy trading
Attached Image (click to enlarge)
Click to Enlarge Name: usd-yen.gif Size: 50 KB
"Money is only a part of wealth" Q.
  • #31
  • Edited 2:28pm Aug 6, 2008 12:07pm | Edited 2:28pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Well folks, today was a beautiful sunny session, with a great rainbow after the yesterday rain . Even the moon faze is in uptrend, growing towards first quater
Years ago I had a sys that traded by moon faze.......it worked sometimes
Attached Image (click to enlarge)
Click to Enlarge Name: 03 wed.aug06.2008.1.gif Size: 72 KB
"Money is only a part of wealth" Q.
  • #32
  • Aug 6, 2008 12:25pm Aug 6, 2008 12:25pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Today we had strong trends in these 3 pairs. This looks like one of those days when you can ride the trend, but that would be a different sys. Scalping is the wolf's strategy...it quickly bytes a piece and then retracts to eat that. I do that too, literally . After I take the trades I sit back and nibble on some carbs. Your brain is the biggest consumer of sugar in the body, carbs turn into glucose that would help your mind to work better for the next trade.
The wolf is smart, he knows that.
I used a different approach for entry today, and it kept me from getting in those bad trades at big pullbacks or trend change that I did yesterday.
I draw s/r lines at each pullback and take the trade if those lines were broken. As you see on the eur and pound charts, the last sup. lines down didn't get passed, keeping me from those bad signals.
"Money is only a part of wealth" Q.
  • #33
  • Aug 6, 2008 12:33pm Aug 6, 2008 12:33pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
I think the eur and the jap would had worked today with SL10 TP10. That is a 1:1 risk/reward ratio and a 2% risk on the acct for each trade, or would had made double the money at 4% with my formula for trade size. The pound needs more room to breed, as has more and bigger pullbacks.
"Money is only a part of wealth" Q.
  • #34
  • Aug 6, 2008 12:53pm Aug 6, 2008 12:53pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Later on got more signals. The s/r kept me again from losers....I was late on the last yen trade and as at noon wolfs and sharks (represented by the red lines in the rainbow) go to lunch (literally), volatility goes away, because they are leading the pack.....so I closed that trade at break even.
Attached Image (click to enlarge)
Click to Enlarge Name: 03 wed.aug06.2008.2.gif Size: 67 KB
"Money is only a part of wealth" Q.
  • #35
  • Aug 6, 2008 12:59pm Aug 6, 2008 12:59pm
Hi Q,

What is your trading period?
Only London session?

This is a really interesting system.. thks 4 sharing
  • #36
  • Aug 6, 2008 1:05pm Aug 6, 2008 1:05pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
I used the 5min charts only a bit today, after the open, to see a clear trend. That is in the rainbow anyway. Plotted a colour wma(21) for better visualizing
Attached Image (click to enlarge)
Click to Enlarge Name: 03 wed.aug06.2008.3.gif Size: 54 KB
"Money is only a part of wealth" Q.
  • #37
  • Aug 6, 2008 1:08pm Aug 6, 2008 1:08pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting masilva
Hi Q,

What is your trading period?
Only London session?

This is a really interesting system.. thks 4 sharing
US session, my server is 7 hours ahead of EST time. I think London works better, but I'm done with night shifts
"Money is only a part of wealth" Q.
  • #38
  • Aug 6, 2008 1:19pm Aug 6, 2008 1:19pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
OK, let's see the score....EUR 3/0....GBP 4/0....JPY 4/0....Total = 11/0....100% wins
That leaves me with 110 pips....great day for me

Happy trading,
Q
"Money is only a part of wealth" Q.
  • #39
  • Aug 6, 2008 1:32pm Aug 6, 2008 1:32pm
Quoting 4xq
OK, let's see the score....EUR 3/0....GBP 4/0....JPY 4/0....Total = 11/0....100% wins
That leaves me with 110 pips....great day for me

Happy trading,
Q
And that is with 2% profit per trade - 20SL, 10TP, 4% max risk@ SL - ?
22% profit for the session ?

Cool!
  • #40
  • Edited 1:54pm Aug 6, 2008 1:39pm | Edited 1:54pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting masilva
And that is with 2% profit per trade - 20SL, 10TP, 4% max risk@ SL - ?
22% profit for the session ?

Cool!
SL20...my formula calculates the tradesize by SL and procent of the acct you are willing to risk on a trade, so keps it at same level, in this case 4%, SL20 ie...$10,000 acct...TradeSize = 2 Lots...for $10,500 is 2.1 Lot....for $9,500 is 1.9 Lot

Thanks, I wish would be like that every day
"Money is only a part of wealth" Q.
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