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Scalping System

  • #1
  • First Post: Sep 25, 2008 12:36pm Sep 25, 2008 12:36pm
What are the most important features on a Scalping system?

Should the indicators take into account large, short or a mix periods of data?

Are closing prices more important than high and lows? Or for the contrary?

Does momentum indicators have the same importance as oscilators?

And how about moving averages?

How should stop losses be defined? Pip value, % of average price variation?

And how about trailing stops. Does it fit well into a scalping system?

And how about leverage. Scalping is all about opening big positions for short periods of time so what can be considered a good level of leverage use?

All the help appreciated, and sorry for any mistake or bad english.

Thank you!
  • #2
  • Sep 25, 2008 12:39pm Sep 25, 2008 12:39pm
AH GANDA PAULINHO! Dá-lhe forte!
  • #3
  • Edited 6:36pm Sep 27, 2008 6:23pm | Edited 6:36pm
A lot of questions!. Just my thoughts. I will let the others in the world argue against.

What are the most important features on a Scalping system?
-price now and the like spot your trade will end up. If you don't know, than you need to figure out.

Should the indicators take into account large, short or a mix periods of data?

-15 minutes and less TF

Are closing prices more important than high and lows? Or for the contrary?
- H/L ...different brokers close at different times.

Does momentum indicators have the same importance as oscilators?
- neithor. But I do like at least one fast oscilator to try to get a feel for strength. Again, different brokers close at different times so indicators don't do much .

And how about moving averages?
- Dont use. If you do, avoid any moving averages that repaint.

How should stop losses be defined? Pip value, % of average price variation?
- s/r ...but, wait for the market to fake before entering. Youll miss a lot but you will also get a lot of good things.

And how about trailing stops. Does it fit well into a scalping system?
- no, trailing stops don't work well in forex. Your better off going for an exit strategy and breakeven than trailing. Just an opinion.


And how about leverage. Scalping is all about opening big positions for short periods of time so what can be considered a good level of leverage use?

-How much pain can you tolerate. This is a tough business. Not a lot of folks make it.


All the help appreciated, and sorry for any mistake or bad english.
  • #4
  • Oct 25, 2008 9:56pm Oct 25, 2008 9:56pm
I only started making money after I got rid of Indicators. They ALL lag and now I trade off 5 min chart w/Candles only. I take small profits thru out trading day. Withdrawls about 10 times a week thru Broker.
FF = Forex Faggots
  • #5
  • Nov 5, 2008 1:14pm Nov 5, 2008 1:14pm
Quoting 8fingers
I only started making money after I got rid of Indicators. They ALL lag and now I trade off 5 min chart w/Candles only. I take small profits thru out trading day. Withdrawls about 10 times a week thru Broker.
It took me almost 3 years to learn that lesson, and it was a very hard, painful and expensive lesson indeed!

You saw the truth in indicators rather quickly. Excellent! Now you WILL make money not depending on historical date, but current price action instead!
  • #6
  • Nov 5, 2008 2:03pm Nov 5, 2008 2:03pm
8 Fingers

Can you elaborate when you say you trade off 5 min chart w/Candles only.

Thanks for your help
  • #7
  • Nov 7, 2008 6:28am Nov 7, 2008 6:28am
I use Candlestick charting when trying to "guess" the next market move. I actually take my Trend direction clues from daily and 4 hr chrts. After I feel I have a Trend direction I work down to hourly and 15 minute to help time my Entry. When I am about to pull trigger I switch to 5 minute to get the "best"entry. If its a day w/o major news I close trades w/quick, small profit. If its a day w/major news, one must "get the trend right" and let the trade grow(or die if hit stop). I only trade news days AFTER the releases. Chk out thread "predictions by 8fingers" in the Rookie section.
FF = Forex Faggots
  • #8
  • Dec 1, 2008 5:41pm Dec 1, 2008 5:41pm
Quoting 4XWeezal
A lot of questions!. Just my thoughts. I will let the others in the world argue against.

What are the most important features on a Scalping system?
-price now and the like spot your trade will end up. If you don't know, than you need to figure out.

Should the indicators take into account large, short or a mix periods of data?

-15 minutes and less TF

Are closing prices more important than high and lows? Or for the contrary?
- H/L ...different brokers close at different times.

Does momentum indicators have the same importance as oscilators?
-...
Great responses. Just a quick disagreement: I saw a scalping system based on Moving Averages, here in FF. The person who invented it was ExpatXXXX. However he was banned, I think because he tried to get customers for account managing.
The system worked very well, there are some people who still use it, now less than before. They meet at http://kbtrading.org/chat/

There are some "non lagging moving averages" (whatever that means) that are very useful in scalping.
I've used one called xpMA, you can search it here or go to http://www.xpworx.com
There's a famous one: Hull. You can search for HMA.mq4 or for Hull Moving Average. There's a lot about it.
  • #9
  • Dec 3, 2008 6:49pm Dec 3, 2008 6:49pm
Quoting 8fingers
I only started making money after I got rid of Indicators. They ALL lag and now I trade off 5 min chart w/Candles only. I take small profits thru out trading day. Withdrawls about 10 times a week thru Broker.

You've really let the cat out of the bag, man.
Buy the green candles, sell the red ones.

I do it all day too. I could care less if the smoothed, weighted, semi-soft average of the hypotenuse is
crossing over the zero-lag exponential and the cow jumps over the moon.

I buy the green candles and I sell the red ones.
Red candle turns green, I'm likely wrong. If green turns red, I'm sure I'm wrong.
Either of those happen, I usually bail. I call them "stops". Original idea, eh ?


Question for ya' (please):

Who do you ask 10 times a week for pay-outs ? Is it 1 broker/firm or 3 or 4 companies ?
Are they hitting you up for 20 or 30 bucks a throw everytime they wire ?
Plus many banks charge an incoming wire fee too, maybe 10 or 15 dollars.

Wouldn't suggest penny wise and pound foolish, to be too cheap to withdraw the money and then lose it
because you didn't wanna pay a wire fee and shouldn't have left it in the trading account. I got all that.
Been there already. Smarter is better.

Just wondering if the cost is eating your lunch or what ?
Excuse my inquiry, I'm just curious how it's working for you.
  • #10
  • Dec 3, 2008 8:17pm Dec 3, 2008 8:17pm
Quoting Quantum4x
Great responses. Just a quick disagreement: I saw a scalping system based on Moving Averages, here in FF. The person who invented it was ExpatXXXX. However he was banned, I think because he tried to get customers for account managing.
The system worked very well, there are some people who still use it, now less than before. They meet at http://kbtrading.org/chat/

There are some "non lagging moving averages" (whatever that means) that are very useful in scalping.
I've used one called xpMA, you can search it here or go to http://www.xpworx.com
There's...
I’m working with an EA called Moving Average but since I installed it hasn’t opened any trade itself
Maybe conditions aren’t present for now but it is quite strange
  • #11
  • Dec 3, 2008 8:28pm Dec 3, 2008 8:28pm
Quoting toshi
I buy the green candles and I sell the red ones.
Red candle turns green, I'm likely wrong. If green turns red, I'm sure I'm wrong.
Either of those happen, I usually bail. I call them "stops". Original idea, eh ?
Not only original but also simple talking about smarter ideas
This idea come from the source of scalping
You sure know how it works
  • #12
  • Dec 3, 2008 8:28pm Dec 3, 2008 8:28pm
where exactly did you get this EA?

Quoting KathySpencer
I’m working with an EA called Moving Average but since I installed it hasn’t opened any trade itself
Maybe conditions aren’t present for now but it is quite strange
In trading, there is no bullshit. You either make money or you don't.
  • #13
  • Dec 4, 2008 6:03pm Dec 4, 2008 6:03pm
candles are the best tool for you before you are decided to get in. I see the indicators as historical information. That precise moment when the trend changes its course,would be too late to open a position. I understand now that a good move should be by entering the market using your already done strategy baby!
  • #14
  • Last Post: Dec 4, 2008 11:28pm Dec 4, 2008 11:28pm
Guys,

From the looks of the posters on this thread,
it appears we have some female traders on board.
Welcome ladies!!!

We better clean this place up ! The girls are here. This is a mess.

8fingers, empty the ashtrays (please save the roaches).
Flamenco143, you and me will have to clean the toilet.
I gotta remember to lift the seat from now on.
4XWeezal, you take out the trash, it stinks faster than we can smell it.
Miguel, find out what the sticky stuff is on the couch.
If it's what I think it is, don't touch it without gloves.

Sorry girls, give us a few minutes to straighten up in here. Thanks.
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