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Part Time Wealth Building Trading System - Daily Scalping

  • #1,401
  • Mar 27, 2007 10:01pm Mar 27, 2007 10:01pm
Quoting ryanmel
it has been a choppy couple of weeks. this is when little scalps during the day for those that can afford the time could come in handy.

advice... taking profit will limit your profit potential, which will affect your end result. limiting your # of trades will too. but again, it comes down to what you are comfortable with. two stops a day might be a bit soon IMO, I have noticed on G/J that the third trade can be the winner a few times. have you noticed this with your trades? if you notice a third or fourth trade is successful, go back and test it out from when you started and see how the results differ... maybe your style is right, and the market is being unkind, or maybe you can fine tune.
Just some stats on the multi trades in a day.

The following is with a 40 pip sl plus a spread of 10 for a total of 50 pip SL.

Pips since 12-25-06

Trades per day
<2 = 2606
<3 = 4921
<4 = 4423
<5 = 4402
<6 = 4138
<7 = 4429
<8 = 4523

The maximum trades in any given day since 12-25-06 was 7 which was 6 stop losses of 50 and a postive 319 pips.

Overall so far this year it appears to be better to limit to 2 trades a day to maximize profits.

Most of the trends were chosen within the first 2 trades. If more than 2 it generally only decreased the losses for that given day.

Hope this helps.

yezbick
  • #1,402
  • Mar 28, 2007 4:45am Mar 28, 2007 4:45am
Go to the Qclock. I see there Lon 10:42- NY 4:42 and 11:42 CET.karl
  • #1,403
  • Mar 28, 2007 5:04am Mar 28, 2007 5:04am
I take one order at 00:00 GMT. SL 40 TP 50. karl
The suffix .doc is wrong, it is .htm to be accepted by the programm.
Attached File(s)
File Type: doc Dailyscalp192397.doc   23 KB | 869 downloads
  • #1,404
  • Mar 28, 2007 6:04am Mar 28, 2007 6:04am
time

PLEASE NOTE: GMT DOES NOT SWITCH TO SUMMER TIME
The United Kingdom (UK) switches to British Summer Time (BST)
(which is an hour ahead of GMT)
from Sunday 25 March 2007 01:00 GMT
until: Sunday 28 October 2007 01:00 GMT

http://wwp.greenwichmeantime.com/
  • #1,405
  • Mar 28, 2007 10:33am Mar 28, 2007 10:33am
Well, the tKimble Daily strikes again after 2 rough days in the beginning of the week. Today took off. I'm currently up 250 pips for the day. Giving me a positive 50 pips for the week so far.

As I said before keep working the system and it will work for you.

yezbick
  • #1,406
  • Mar 28, 2007 12:27pm Mar 28, 2007 12:27pm
Quoting yezbick
Well, the tKimble Daily strikes again after 2 rough days in the beginning of the week. Today took off. I'm currently up 250 pips for the day. Giving me a positive 50 pips for the week so far.

As I said before keep working the system and it will work for you.

yezbick

Is anyone still trading the GBPUSD? I am higly considering making the switch to the GBPJPY. It seems like thats where this strategy is for. any thoughts guys? or should i stick with cable?
  • #1,407
  • Mar 28, 2007 12:33pm Mar 28, 2007 12:33pm
Quoting lkwd2000
Is anyone still trading the GBPUSD? I am higly considering making the switch to the GBPJPY. It seems like thats where this strategy is for. any thoughts guys? or should i stick with cable?

The cable has been ranging for a while now and I've switched to trading just the GBPJPY about 2 weeks ago.

The key is to find pairs that are trending and the cable has been ranging which can take quite the effect on your balance.

yezbick
  • #1,408
  • Mar 28, 2007 12:35pm Mar 28, 2007 12:35pm
I think the GBPJPY is the only pair that moves enough to be effective for this method.

Even the GBPCHF is somewhat marginal now. Also, the GBPJPY daily range has been growing smaller lately, which probably accounts for the number of stop outs suffered lately. I expect this to be untradeable for the summer months which are usually rather rangey in nature.

Don Life is expensive, but includes a free trip around the sun.
  • #1,409
  • Mar 28, 2007 3:26pm Mar 28, 2007 3:26pm
Quoting yezbick
Well, the tKimble Daily strikes again after 2 rough days in the beginning of the week. Today took off. I'm currently up 250 pips for the day. Giving me a positive 50 pips for the week so far.

As I said before keep working the system and it will work for you.

yezbick
Excellent Trading. No system can avoid whipsawing because it is the nature of all markets to enter and exit trading ranges.

The majority of any trading cycle is dominated by ranges. Designing a system that accommodates equally for both ranges and trends is generally impossible becuase by the time the price action reveals a range or trend, it is too late to profit from it. In my mind, the trader must decide which price action will be used to achieve profitability, ranging or trending. Both have differing characteristics including amount of drawdown, time between trades, number of trades and profits/losses per trade.

Happy Trading,

TK
  • #1,410
  • Edited Mar 29, 2007 1:11am Mar 28, 2007 8:53pm | Edited Mar 29, 2007 1:11am
I'm a bit late to the party here but have been following and would have to agree with traderone and yezbick.

I have been tracking daily trades for a month with a few slight mods along the way. I'm doing max 2 trades per day. I've kept a track of results in this excel spreadsheet which also has the rules I've used.

While you can't draw too many conclusions in a month, so far:

- the GBPCHF isn't profitable (to date)
- the GBPUSD has been about breakeven
- and as everyone knows, the GBPJPY continues to be profitable.

Part way through I went from a TP of 100 pips on the GBPJPY to a split order, 1st TP of 100pips, the second left to run. So far (only about 2 weeks) there's not too much in it....can't really say one way is better than the other.

For what it is worth, my concern longer term would be that the GBPJPY has been the only real profitable one (using these rules) and at the moment it is way above it's typical daily ATR. So the risk is that it will end up like the others if the volatility dies down.

But for now the GBPJPY is certainly doing well, so thanks TKimble for sharing and good luck to those trading it. I will keep tracking it for now and can post an update down the track for those interested.

Cheers...
Attached File(s)
File Type: zip TKimble.zip   57 KB | 911 downloads
  • #1,411
  • Mar 29, 2007 1:14am Mar 29, 2007 1:14am
Might help if I post the right file!

I have just edited previous post with the most recent file. Hopefully that makes a bit more sense now!
  • #1,412
  • Mar 29, 2007 12:43pm Mar 29, 2007 12:43pm
Quoting Al_Have1
Since Jan 1, my records show +4583 pips...pretty close to yours. I am using entry at 23:00 GMT, SL=40, no TP. Max of 2 trades (I like my sleep!).

As TK suggests, you need to develop you own style. Here are more rules I use. These are not my ideas, I got them from this forum & the TK weekly. Thanks to all who contributed, especially TK:

  1. I carry over trades to the next day unless there are 3 up/down days.
  2. If I carry over and the new SL is > BE, I enter a new trade as well.

The carryover rule resulted in an extra 2141 pips added to the score since Jan 1.

btw: yesterday I was stopped twice too. The second one hit my short SL by 1 pip before heading south 110 pips.

The way I'm reading the rules, now, is:
1) Between 23:00 and 00:00GMT, if you are not in a trade, enter a trade in the direction of the previous day's candle, unless there are three prior days in the same direction, in which case you will go against the previous day's direction.
1a) If you ARE in a trade, and the direction of a new trade would be in the same direction as your existing trade, just move the stop on the old trade to where the new trade's stop would be. If that stop would be past break-even, then you would move the stop on the previous trade, and then enter a second trade in the same direction.
1b) If you ARE in a trade, and rules would dictate that you turn the direction of the trade, close the current trade and enter a trade in the proper direction.
2) Once you have entered your "primary" trade, you need to place a limit order in the opposite direction, to be triggered at the primary trade's stop loss, with a stop loss that matches the primary trade's entry point.

Now, my questions:
Do these rules sound correct?
What happens if, in 1a), you already have two open trades, and today would be a third trade open at the same time, what do you do? Close the two current positions, and open a new one? Close the first one, build on the second?

tia,
jj
  • #1,413
  • Mar 29, 2007 1:47pm Mar 29, 2007 1:47pm
when you enter a trade at 23:00 or 00:00, do you enter a market order at that current price? Even if the pair has moved a certain # of pips from the close, and do you place your stoploss 50 pips from the market order or 50pips from the close of the previous day? Little confused, thanks for help in advance.
  • #1,414
  • Edited 3:04pm Mar 29, 2007 2:46pm | Edited 3:04pm
Quoting johnnyjet
The way I'm reading the rules, now, is:
1) Between 23:00 and 00:00GMT, if you are not in a trade, enter a trade in the direction of the previous day's candle, unless there are three prior days in the same direction, in which case you will go against the previous day's direction.
Yes. I follow TK's method with no TP.

1a) If you ARE in a trade, and the direction of a new trade would be in the same direction as your existing trade, just move the stop on the old trade to where the new trade's stop would be. If that stop would be past break-even, then you would move the stop on the previous trade, and then enter a second trade in the same direction.
Yes. The first trade is now a freebie so I let it ride and follow TK's rules. I open a new position, too.

1b) If you ARE in a trade, and rules would dictate that you turn the direction of the trade, close the current trade and enter a trade in the proper direction.
Yes. Close all open positions and reverse 1 order.

2) Once you have entered your "primary" trade, you need to place a limit order in the opposite direction, to be triggered at the primary trade's stop loss, with a stop loss that matches the primary trade's entry point.
Yes, but only reverse 1 order/lot no mater how many positions I have open.

Now, my questions:
Do these rules sound correct?
Yes.

What happens if, in 1a), you already have two open trades, and today would be a third trade open at the same time, what do you do? Close the two current positions, and open a new one? Close the first one, build on the second?
tia,
jj
You got it! I follow 1a. If trade #2 SL is above breakeven, #1 & #2 are now freebies. I move both SLs and open #3. I will close all 3 at the end of the session since rules dictate a reverse. The most you will have open at one time is 3 trades but that is rare.

You will have times when you lose 40 pips on the carryover. Since that is 2 trades it is equal to -80 pips. On the flipside, if it rides up 100 pips, you make 200 (2x100).
  • #1,415
  • Mar 29, 2007 3:16pm Mar 29, 2007 3:16pm
Quoting Al_Have1
You got it! I follow 1a. If trade #2 SL is above breakeven, #1 & #2 are now freebies. I move both SLs and open #3. I will close all 3 at the end of the session since rules dictate a reverse. The most you will have open at one time is 3 trades but that is rare.

You will have times when you lose 40 pips on the carryover. Since that is 2 trades it is equal to -80 pips. On the flipside, if it rides up 100 pips, you make 200 (2x100).

On your freebie trade, when SL is greater than BE, do you also put a reverse order on them? or only the new trade?
  • #1,416
  • Mar 29, 2007 3:41pm Mar 29, 2007 3:41pm
Quoting lkwd2000
On your freebie trade, when SL is greater than BE, do you also put a reverse order on them? or only the new trade?
No. Enter only 1 SAR order (1 lot) no mater how many positions are open. The other lot(s) will close out for a profit if the SL is hit and you start over going the other direction.
  • #1,417
  • Mar 29, 2007 4:25pm Mar 29, 2007 4:25pm
OK, here's a scenario.
1) First day is a down bar, you go short.
2) That position stops and reverses, so day 2 is an up bar.
3) Move stop to -40 (or -50 on the g/j) for that position, open a second position (I'm assuming you're >+50). Day 3 continues up.
4) Move stops, open a third position. Day 4 moves on up.
5) Close prior positions, because of 3 day rule. Now, rule says go short, so, you go short. Day 5 keeps going up.
6) OK, you've had 4 up days in a row, and you did go short yesterday. Do you keep going short until it actually DOES turn around, or break it into groups of 3, so you'd go long today, since yesterday was long?

tia,
jj
  • #1,418
  • Mar 29, 2007 4:37pm Mar 29, 2007 4:37pm
Hi
I have been reading thread, and noyice from everyones comments that most of the members are intra day, day traders.

I have a day job, live in CST in USA, and want to trade the TK's, style, but have a problem, since I am not in front of the computer. I cant be trading like most of you diss. here, that you pull the trigger, if you see a loss.

So can anyone suggest, what kind of strategy, I can trade, like, when to enter, stop loss.

Has anyone written a EA?

Thanks
Regards
Zee
  • #1,419
  • Mar 29, 2007 5:11pm Mar 29, 2007 5:11pm
Quoting johnnyjet
OK, here's a scenario.
1) First day is a down bar, you go short.
2) That position stops and reverses, so day 2 is an up bar.
3) Move stop to -40 (or -50 on the g/j) for that position, open a second position (I'm assuming you're >+50). Day 3 continues up.
4) Move stops, open a third position. Day 4 moves on up.
5) Close prior positions, because of 3 day rule. Now, rule says go short, so, you go short. Day 5 keeps going up.
6) OK, you've had 4 up days in a row, and you did go short yesterday. Do you keep going short until it actually DOES turn around, or break it into groups of 3, so you'd go long today, since yesterday was long?

tia,
jj
I only look at the prior 3 days per TK: Up+Up+Up=Short. Look at candle color not entered position. Keep going short until it turns.
  • #1,420
  • Mar 29, 2007 5:16pm Mar 29, 2007 5:16pm
Quoting johnnyjet
OK, here's a scenario.
1) First day is a down bar, you go short.
2) That position stops and reverses, so day 2 is an up bar.
3) Move stop to -40 (or -50 on the g/j) for that position, open a second position (I'm assuming you're >+50). Day 3 continues up.
4) Move stops, open a third position. Day 4 moves on up.
5) Close prior positions, because of 3 day rule. Now, rule says go short, so, you go short. Day 5 keeps going up.
6) OK, you've had 4 up days in a row, and you did go short yesterday. Do you keep going short until it actually DOES turn around, or break it into groups of 3, so you'd go long today, since yesterday was long?

tia,
jj

I've done some research on this topic. Starting at 12-25-06 the daily direction numbers are as follows.

Total Days Traded = 69
1 day then reverse direction = 14
2 days then reverse direction = 22 days or 11 times
3 days then reverse direction = 12 days or 4 times
4 days then reverse direction = 16 days or 4 times
5 days then reverse direction = 5 days or 1 time

The average movement was 2.03 days then change of direction, but as you can see there was a lot of times that there were greater than 3 days traded in the same direction.

I personally wait for the market to change the direction, because it may be a continuation of the previous trend.

hope this helps clear some things up.

yezbick
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