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Scalping the Rainbow

  • #381
  • Aug 26, 2008 5:27pm Aug 26, 2008 5:27pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Guys, i think is time out, let's test what we got so far and see how we doing.
I've been out of town this week and did only a couple of trades, didn't had time to advance this sys
Anybody has a script that would close the trades just in one pair, not all the trades? I don't have the time to make one now.
Thanx
"Money is only a part of wealth" Q.
  • #382
  • Aug 27, 2008 3:47am Aug 27, 2008 3:47am
Hi 4xp,

Here are some of the failed trades. Out of 7 trades 3 failed that is 40-60= -20.
Making the same mistake is not smart.
I want to get to your results.

BTW, I replaced the WMA200 with the colored WMA200, so I can see the trend in the 1M.

EURUSD - it emerged from the yellow once again and I entered. Then it went all the way back on me.
AUDUSD - It looks by the rules....

Thanks

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  • #383
  • Aug 27, 2008 9:04am Aug 27, 2008 9:04am
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting ady27
BTW, I replaced the WMA200 with the colored WMA200, so I can see the trend in the 1M.

EURUSD - it emerged from the yellow once again and I entered. Then it went all the way back on me.
In this eur situation i woudn't take the trade because the rainbow is too thin, about 10-15 pips...that is a sign of trend reversal, or at least a large pullback and no volatility. Also, the entry is very late, the one i would take if the trend would be strong is after the yellow dip, when the price brakes the support...your green line, and closes there.
I don't see any s/r lines from the 5m chart or pivots indy, those help a lot...or maybe your blue line is that?
Good idea with the color MA200, but doublecheck if that is the same as the 5m trend
"Money is only a part of wealth" Q.
  • #384
  • Aug 27, 2008 9:34am Aug 27, 2008 9:34am
Quoting 4xq
the one i would take if the trend would be strong is after the yellow dip, when the price brakes the support...your green line, and closes there.
In this event (yellow dip), i'm using a buy stop at 6-7 pips above the price and i adjust the buy stop if the price continues to go down.
So if it's a simple retracement, i take the buy at the right time.
If it's a reversal trend, my stop is not reached -normally http://www.forexfactory.com/images/icons/icon7.gif
  • #385
  • Edited 10:01am Aug 27, 2008 9:45am | Edited 10:01am
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting ady27
AUDUSD - It looks by the rules....
The entry is correct, but the problem is that AUD may need a different SL, or this sys is not working well in this pair.
Also after the entry we notice that we have a higher peak on the price, but a lower peak on the cci, so price goes up and cci down, that is sign of reversal. Then cci breaks it's own trend line and the 100 level then I would exit when price went into purple, with a smaller loss.
If the time of this trade is just before the close of the trading day, as I can see on the bottom, that is not a good time to take trades with this sys
I only tested this on eur, gbp and jpy. I sugest to stick to eur until you get a good grasp of it
"Money is only a part of wealth" Q.
  • #386
  • Aug 27, 2008 9:53am Aug 27, 2008 9:53am
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting madscalp
In this event (yellow dip), i'm using a buy stop at 6-7 pips above the price and i adjust the buy stop if the price continues to go down.
So if it's a simple retracement, i take the buy at the right time.
If it's a reversal trend, my stop is not reached -normally http://www.forexfactory.com/images/icons/icon7.gif
you mean a buy stop order to entry or a stop loss to exit?
"Money is only a part of wealth" Q.
  • #387
  • Aug 27, 2008 10:24am Aug 27, 2008 10:24am
Quoting 4xq
you mean a buy stop order to entry or a stop loss to exit?
To entry of course.
In the area indicated by the yellow arrow, when the price dips in the lower MM, i'm checking the fall. I put then a buy stop at 7 pips above the price and i follow the fall adjusting the buy stop at 7 pips.
If it's a retracement and if the price goes up again, i take the buy (stop) at the right time before the re-emergence.
If no (reversal down trend), I am protected.
In this case, it's a small dip. With a bigger dip, this process is interesting.
Attached Image
  • #388
  • Aug 27, 2008 10:49am Aug 27, 2008 10:49am
Hi 4xq,

just thought I'd share something with you. I love your use of the rainbow as the basis of a trading method...cos it just made me realize that one of greatest gifts to humanity, is colour, and in my flying days I had the privilege of seeing a perfectly circular rainbow at 50,000 ft in a Learjet....what an awesome sight!

..left you a message on your site....

Richard.
  • #389
  • Aug 27, 2008 11:15am Aug 27, 2008 11:15am
Quoting 4xq
In this eur situation i woudn't take the trade because the rainbow is too thin, about 10-15 pips...that is a sign of trend reversal, or at least a large pullback and no volatility. Also, the entry is very late, the one i would take if the trend would be strong is after the yellow dip, when the price brakes the support...your green line, and closes there.
I don't see any s/r lines from the 5m chart or pivots indy, those help a lot...or maybe your blue line is that?
Good idea with the color MA200, but doublecheck if that is the same as the 5m trend

Thank you 4xp.
The green and blue lines are pivots.
So when I was stepped out you would go in. I understand.
The MA200 does not correlate always with 5M. I always check the 5M.
  • #390
  • Aug 27, 2008 11:20am Aug 27, 2008 11:20am
Quoting 4xq
The entry is correct, but the problem is that AUD may need a different SL, or this sys is not working well in this pair.
Also after the entry we notice that we have a higher peak on the price, but a lower peak on the cci, so price goes up and cci down, that is sign of reversal. Then cci breaks it's own trend line and the 100 level then I would exit when price went into purple, with a smaller loss.
If the time of this trade is just before the close of the trading day, as I can see on the bottom, that is not a good time to take trades with this sys
I only tested this on eur, gbp and jpy. I sugest to stick to eur until you get a good grasp of it

I am trading from the opening of London, my 9AM to the end of USA my 23:00. Basically I can trade when ever I like, time wise.
  • #391
  • Aug 27, 2008 11:47am Aug 27, 2008 11:47am
Here are 2 more:

Winner swiss- not all by the rules. Before the yellow dip, should have been after. still 10 pips at home.
The red line is R1.
Loser cad- How can you know that this will be the last before reversal?
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  • #392
  • Aug 27, 2008 11:51am Aug 27, 2008 11:51am
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting madscalp
To entry of course.
In the area indicated by the yellow arrow, when the price dips in the lower MM, i'm checking the fall. I put then a buy stop at 7 pips above the price and i follow the fall adjusting the buy stop at 7 pips.
If it's a retracement and if the price goes up again, i take the buy (stop) at the right time before the re-emergence.
If no (reversal down trend), I am protected.
In this case, it's a small dip. With a bigger dip, this process is interesting.
sounds very good, if that works 4 u. it is different and earlier that my breakouts entries, earlier probably than the re-emerge...you don't have the drawdowns a break out sys have. I use breakouts as they keep me out of the bad trades at end of trend, but I will try this too...I guess at trend end one may increase the 7 pip so you don't take a trade against the new trend or in a flat or swinging market....or just cancel the order and wait to see what happens...trend change, continuation of trend, or flat....thanks for sharing
"Money is only a part of wealth" Q.
  • #393
  • Aug 27, 2008 12:13pm Aug 27, 2008 12:13pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting sensei
Hi 4xq,

just thought I'd share something with you. I love your use of the rainbow as the basis of a trading method...cos it just made me realize that one of greatest gifts to humanity, is colour, and in my flying days I had the privilege of seeing a perfectly circular rainbow at 50,000 ft in a Learjet....what an awesome sight!

..left you a message on your site....

Richard.
Thank you sensei, I didn't even realize that a rainbow can be circular, that is some superb site to see... ones in a lifetime probably
"Money is only a part of wealth" Q.
  • #394
  • Aug 27, 2008 12:27pm Aug 27, 2008 12:27pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting ady27
Thank you 4xp.
The green and blue lines are pivots.
So when I was stepped out you would go in. I understand.
The MA200 does not correlate always with 5M. I always check the 5M.
I meant if the trend would be strong, short before your entry...see pic
On the new trend I plotted two entries I would take by so far rules
I trade from way before NY open or after and after important news, those that are red on this forum's calendar until before lunch if I see the rainbow go thin...then I may continue after lunch if the rainbow picks up again and I didn't make my pip goal
London maybe slows down before they have lunch too, the thing is to find a window with good movement
Attached Image (click to enlarge)
Click to Enlarge Name: Capture-1.gif Size: 167 KB
"Money is only a part of wealth" Q.
  • #395
  • Aug 27, 2008 12:51pm Aug 27, 2008 12:51pm
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Quoting ady27
Here are 2 more:

Winner swiss- not all by the rules. Before the yellow dip, should have been after. still 10 pips at home.
The red line is R1.
Loser cad- How can you know that this will be the last before reversal?Attachment

Attachment
In the cad is no trend, is a sideways market...if we look at MA200 is almost flat and on 5m probably see better
I try to stay out of no trend and also keep the grid on all 1m charts at 10 pip, it helps to see the big pic, how the rainbow looks like, like that you have a point of reference of dimentions and your eye get's trained to that
For me is no trend until for ex. price makes a top (red line), then goes down, then up but doesn't make a new top, then down again and past the dip, the suport (white line), but for this sys on the 5m chart, or just drops down past suport with no significant pullbacks
Attached Image (click to enlarge)
Click to Enlarge Name: usdcad.gif Size: 36 KB
"Money is only a part of wealth" Q.
  • #396
  • Aug 27, 2008 1:38pm Aug 27, 2008 1:38pm
Thanks a lot.
Learning proses is great, feels like growing...
  • #397
  • Aug 28, 2008 11:42am Aug 28, 2008 11:42am
  •  4xq
  • | Joined Jun 2008 | Status: In This Sign You Shall Conquer | 281 Posts
Wed...been busy with something else, made only 7 trades...6/1...one 3 pip loss...89 pip
Today, Thu....I have a big headeck...only 8/0...couple of hours...poor performance...97 pip
I lost many pips because I don't have a script to close just one pair, I closed all trades at the same time in one ocasion.
Attached Image (click to enlarge)
Click to Enlarge Name: 16 aug28.2008.trades.gif Size: 38 KB
"Money is only a part of wealth" Q.
  • #398
  • Aug 28, 2008 12:01pm Aug 28, 2008 12:01pm
I have a blog devoted to rainbow scalping. I trade daily between Frankfurt and London open. Please feel free to comment and ask questions:
http://shaolinscalper.blogspot.com
  • #399
  • Aug 29, 2008 4:53am Aug 29, 2008 4:53am
Hi! The script is cliosing open orders on the window pair you choose.
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  • #400
  • Aug 29, 2008 9:08am Aug 29, 2008 9:08am
Quoting 4xq
Wed...been busy with something else, made only 7 trades...6/1...one 3 pip loss...89 pip
Today, Thu....I have a big headeck...only 8/0...couple of hours...poor performance...97 pip
I lost many pips because I don't have a script to close just one pair, I closed all trades at the same time in one ocasion.
please attach your monthly statement (from 29.08.2008 to 29.09.2008 , Detailed report)

Thanks
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