15-minute Opening Range Scalp - newbie question, plz help | Forex Factory

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15-minute Opening Range Scalp - newbie question, plz help

  • #1
  • First Post: Mar 9, 2007 11:23am Mar 9, 2007 11:23am
Hi,
just two dumb newbie questions but i would be grateful if someone can help to clarify it...
In article "Scalp Trading methods" Kevin Ho writes the followings:
Entry: Enter on a buy stop 2 tics above the high of the first 15
min range or Enter on a sell stop 2 ticks below the low
of the first 15 min range.
1.) What does "buy stop 2 tics above the high of the first 15
min range" exactly mean???
Does it mean that i look at the high of the first 15 min, then i wait 2 tics and if they are higher than the high of the first 15 min? But how do you do that with a "buy stop"?? thought stop is specified in pips...Then maybe he mean "two pips above the high of the first 15
min range"?
2.) The "or" means that i create a buy stop for "highs" and sell stop for the "lows" at the same time?? And then wait which one will be hit and cancel the other (if this is not done automatically)??
I would appreciate your comments, thank you for your help in advance....
All the best, xrbor
  • #2
  • Mar 9, 2007 2:38pm Mar 9, 2007 2:38pm
First of all there is no dumb question. only dumb people who ask that question.but u are not a dumb people in my view.

1.u got it right.it's 2 tics above the 15min high and enter a buy trade."buy stop" is a pending order meaning u place an order in which that order will execute when the condition is meet by ur order."two pips above the high of the first 15
min range"?<-- yes this is it.so take a look on your chart,then find the 15Min high and place a buy stop 2 pips above that high point, and vice versa on the sell

2.well this is depend on your trade software or flatform.if not cancel another just watch it.still u can work on the sl and tp to make sure u dont get into the market twice if the price hit the high and then reverse to smack the low.

hope it help and have fun


Quoting xrbor
Hi,
just two dumb newbie questions but i would be grateful if someone can help to clarify it...
In article "Scalp Trading methods" Kevin Ho writes the followings:
Entry: Enter on a buy stop 2 tics above the high of the first 15
min range or Enter on a sell stop 2 ticks below the low
of the first 15 min range.
1.) What does "buy stop 2 tics above the high of the first 15
min range" exactly mean???
Does it mean that i look at the high of the first 15 min, then i wait 2 tics and if they are higher than the high of the first 15 min? But how do you do that with a "buy stop"?? thought stop is specified in pips...Then maybe he mean "two pips above the high of the first 15
min range"?
2.) The "or" means that i create a buy stop for "highs" and sell stop for the "lows" at the same time?? And then wait which one will be hit and cancel the other (if this is not done automatically)??
I would appreciate your comments, thank you for your help in advance....
All the best, xrbor
  • #3
  • Mar 10, 2007 8:13am Mar 10, 2007 8:13am
Hi,
thank you very much for your kind answer! However another question occures to me...)
In his "Scalp Trading Method" article, it seems to me that he suggests that first of all these methods can be successfully applied to the S&P500 futures market. (See his words under subtitle "The Ultimate market for these scalping methods") Do you think they can be applied to the FX market as well, i mean just as they are presented??? Anybody tried these at FX?? And if yes, with what results ?
Other traders' comments are welcomed as well!
Thanks in advance, xrbor.
  • #4
  • Mar 10, 2007 9:36am Mar 10, 2007 9:36am
Just finished reading the aformentioned article, and here are my thoughts.

First of all, it may be a little dated, so I'm not sure how effective that method still is.

In forex, that method may not work for a few reasons:
1) Definitive ranges may not occur in 15 minutes. Since forex trends tend to be compressed and violent, more than likely you get movement in a direction for a longer period of time...and then violent reversals. It's not uncommon for an entire trend to develop in the course of an hour, only to have it completely reverse the next.

2) What trading time would you choose? The open of the London? The open of the NYSE? The Asian open? each of those sessions has a distinct trading trading pattern that tends to affect different currencies differently. So, for example, the EUR/USD might be very quite during the Asian session, but the USD/JPY may be fluctuating all over the place...and the EUR/USD might trend very strongly during the Euro session, but range during the NYSE session. FX is a 24/5 market...so you'll find that strategies that apply to NYSE sessions exclusively may not work so well.

With that said, it's always important to try and at least back-test the system to see if it's worked to any degree. Then you can engage in forward-testing on a risk averse account (Demo, or small risk account).

Quoting xrbor
Hi,
thank you very much for your kind answer! However another question occures to me...)
In his "Scalp Trading Method" article, it seems to me that he suggests that first of all these methods can be successfully applied to the S&P500 futures market. (See his words under subtitle "The Ultimate market for these scalping methods") Do you think they can be applied to the FX market as well, i mean just as they are presented??? Anybody tried these at FX?? And if yes, with what results ?
Other traders' comments are welcomed as well!
Thanks in advance, xrbor.
  • #5
  • Mar 10, 2007 10:09am Mar 10, 2007 10:09am
Hi,
thanks for your comments. Concerning 2.), since i am based in Europe, thought only about London and NY...I am just demo-trading with gbp/dollar...so i try to back-test these ideas as you suggested... Originally, what really got me hooked in the paper is the simplicity of the ideas so that's why i thought it might be interesting to try it - at least with a demo account... Since i am looking at gbp/dollar i try to find market strategies for this pair.. But anyhow you are right have to be careful with these things..
Again, thanks, xrbor.
  • #6
  • Mar 10, 2007 8:28pm Mar 10, 2007 8:28pm
I think with this strategy you're going to end up buying tops and selling bottoms.
How you act is more important than how you feel.
  • #7
  • Last Post: Mar 10, 2007 9:24pm Mar 10, 2007 9:24pm
Quoting mrmikal
...Definitive ranges may not occur in 15 minutes. Since forex trends tend to be compressed and violent, more than likely you get movement in a direction for a longer period of time...and then violent reversals...
What if he were to change it to read a 20% of "Previous Range" Breakout. leaving 80% for potential profit {or 70% or 50% for the more conservative.} Would you consider it a 'Potential System' then?
Quoting mrmikal
2) What trading time would you choose? The open of the London? The open of the NYSE? The Asian open? each of those sessions has a distinct trading trading pattern that tends to affect different currencies differently. So, for example, the EUR/USD might be very quite during the Asian session, but the USD/JPY may be fluctuating all over the place...and the EUR/USD might trend very strongly during the Euro session, but range during the NYSE session. FX is a 24/5 market...so you'll find that strategies that apply to NYSE sessions exclusively may not work so well.
I Find that 6:15 AM Mountain Time works pretty good on most USD base Pairs. That's 15 Minutes before the NY Open. ie The Pre Amble to the Closing Session of the Global Day and {to some degree} most descisions have been made.

But heh, that's only what I find works for me when a Breakout System is to be utilized.
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