Scalpers Go Here

Linuxtroll
I found all your post and read all of them
So far I am getting my lots of screen time.
And I have two more questions.
1. For 1 min scalping 3-13-39 is effective or not in your opinion?
2. Is it ok to have spread like this and be succsesful on 1 min charts
EUR/USD 3pips
GBP/USD 5pips
GBP/CHF 9pips
GBP/JPY 9pips
As always greatly apreciated of your input

And I have two more questions.
1. For 1 min scalping 3-13-39 is effective or not in your opinion?
Not effective for scalping... use CyroxMMA or Rainbow...
--
2. Is it ok to have spread like this and be succsesful on 1 min charts
EUR/USD 3pips
GBP/USD 5pips
GBP/CHF 9pips
GBP/JPY 9pips
No... Get a market maker or ecn where you can get 2 or less spread for scalping... Use tick charts or 10 or 50 sec chart... 1 min is fine too...

You can use any CCI value; but you must know which level to enter and exit based on your timeframe and risk level... Woodie uses 14; Dr Bob uses 50... Some traders use 30... but all look at it differently and depends on what they wanted to see (trend, pattern or entry/exit)...

Anyone knows of Robot Scalper-V1.5-MC or its newer version?

Thanks

Can you explain how to use a tick chart; I believe this is available in MT4

Thanks.

Linux,
Could you please share your detailed setup/system, if you have in a word or pdf document. That would be great.
Thanks
Khanma

i never have a real account before,so what happen if they found you as scalper?they will freeze your account and you get nothing even your initial deposit?

Why would they do that? Scapling is a regular activity.

i just want to know what actions they will take to scalper

There is scalping and there is scalping. Let's say you Get in with 90% of your margin at 8:30:01 on Non-farm and get out at 8:30:20 19 seconds later with a 100 pip move on the initial spike. The broker never got a chance to actually pass that trade on to the interbank or even clear it within their own house. Usually fundamental moves are cleared completely in house if the broker is one that doesn't just grey out prices and cut off trading. The banks themselves and the feed the broker is getting from them can go as much as 60 wide during a large move. Because they couldn't clear the trade you basically withdrew money from their account and stole from them. This is the kind of scalping they don't like and will either close your account or put you on "manual" where the dealing desk approves or deny's all of your trades. It's impossible to trade short term once on manual.

Scalping during a normal market in and out for small pips but still giving them a minute or two to clear the trade is a different story. They usually don't mind. Still depends on the broker though. I've seen some that do.

I am really starting to see why scalping can be a great strategy. I used to think it was foolish but now I think it's actually the perfect trading style, for me anyway.

I used to think that having a reward/risk ratio less than 1 was a bad idea...I mean you have to win more than you lose just to break even. When I was studying for the level 1 CFA exam, in one of the readings they mentioned how a strategy with many small wins and the occasional big loss is like "picking up nickels in front of a bulldozer." Haha, I thought that was funny.

But the truth is: It's not your reward/risk ratio that really matters, it's your reward/risk ratio combined with your win percentage, combined with the frequency of trades you make...all of these things must be considered. Here's an example:

Say one trader has a traditional style, he's not a scalper, and his reward/risk = 2/1, (e.g. maybe he chooses his lot sizes so that he is risking 3% of his account on a loss, i.e. he is risking 3% to potentially make 6%). But maybe he only wins about 50% of his trades (and 50% is usually considered pretty good for a non-scalper). What's his expected return?
It's (0.5)(6) - (0.5)(3)= 1.5; so he is expected to make about 1.5% per trade on average.

Compare this to a scalper who might have a reward/risk = 1/3 (let's say he is also risking 3% of his account per trade, but to potentially make only 1%) ...but his trades are winners about 90% of the time. What's his expected return?
It's (0.9)*(1) - (0.1)*(3) = 0.6; so he is expected to make about 0.6% per trade on average.

The scalping sounds worse so far but we don't have the whole story yet: We need to know how often these two traders make trades. Maybe the traditional trader makes a trade about once per day; he's a day trader. And maybe the scalper makes 4 trades per day. Now at the end of the day, even without compounding after each trade, what are the results?
The day trader made his 1.5%, the scalper made 4*(0.6%) = 2.4%
Doesn't sound so bad now, eh?

What's more is that because a sclaper makes trades much more frequently, he has more opportunities to compound his earnings meaning he could achieve much greater growth.

Also if we're talking about a very short-term strategy, the scalper might be able to find 4 or more setups by looking at different charts in a very short time. Maybe it would only require a couple hours a day, rather than sitting in front of the screen all day.

Making more money, saving more time...hmm this sounds like the way to go. Only thing is, you need a strategy that actually has such a high win percentage. But let's face it: It's easier for price to move 5 pips in your favour than it is to move 12 or 15 pips against you (reward/risk = 1/3)... of course it depends on the details of the strategy but it should generally be more likely to have winners than a situation where price has to move 30 pips in your favour vs. moving 15 against you (reward/risk= 2/1). So yes, a high reward/risk ratio means that you don't have to have winning trades as often, but it also makes it harder to get a winning trade.

Sorry for the long post.

-mathematician

Well, if you indeed find a good scalping strategy that pays well you then have to find a broker to trade it with. I just yesterday read about a trader who was succesfully scalping with 35 Standard Lot trades with FXLQ. Unfortunatley for that trader, his account got disabled. When he contacted FXQL to enquire why his account was disabled he was given the reason that FXLQ's liquidity providers did not like his style of trading etc.

So, what is the solution? Move to an ECN broker. But, this is not that straight forward though. First, you will typically require an account above $50k to trade with an ECN. Second, you will need to have really fast execution. Third, it should be noted that an ECN broker will typically charge you fees for entering and exiting trades, "round turns" as they say, as well as a spread.

Your logic is impeccable but have you ever been able to find a scalping technique with a 90% strike rate(irrespective of the RR ratio) that gives you 4 set-ups in a couple of hours? If so, I would love to hear about it.
In fact, I'd settle for a far more humble result than that if it was reliable AND frequent.

cheers
Ken

For a technique look no further than linoxtrolls posts. you need a tick chart, proferably 5 sec, set up the WMA at 6,9,12-144 all in one color and watch the lines consolidate, once they start to seperate in a moving market jump in and out. The set up and examples are in his past posts. Like anything it just takes practice. Trade it on the eur/jpy or gbp/usd in a moving market. Grab 3-5 pips.

As far as opening an account at an ecn and needed $25k-$50k, that is just not accurate anymore. You can open an ecn account at mbtrading for as little as $400. Things are changing in the brokerage market. More and more firms are going to and encouranging scalping because they make the commission the more you trade. At an ecn they have no dealing desk so they do not hold positions and therefore do not trade against you. Another positive about scalping is when you scalp you are limiting your time and exposure to the market. You are in and out. i personally know two traders that are truly successful, and both scalp!

I have read all of linuxtrolls posts and still haven't got a clear idea of his entry strategy, his exit strategy or his risk management.Maybe I'm just thick but I find his explanations a little oblique. Does he enter on pullbacks or on trend direction changes? How does he differentiate between the two? Most specifically, what segment of the price movement does he target for capture? If I learn this, the rest I can figure out myself.
I do appreciate your patience and advice.


Ken

Possibly you are correct in that some of his answers are somewhat vague. I believe that is because he sees the set up very simple and matter of fact and uncomplicated. So therefore his answers can be seen as oblique. When all the lines are together and the price is consolidating, wait and as the lines start to seperate and widen that would be an entry point to jump in grab 2-5 pips and exit. Or if you think the move has more energy set a s/l order at your profit point or a trailing stop.

In regards to an ecn brokerage, Linuxtroll has indicated he has been using efx group which is an IB for mbtrading. Point being you can set up a demo or open an account for as little as $400 and get an idea of how an ecn works with smaller spreads. You can use Prorealtime (xtick) or esignals for the charting (5sec)...I hope this helps out a bit.

I think if you had all that info, entry, exit, MM etc there wouldnt be much left to figure out would there? From what I can see its best to trade with the trend, you are riding the wave. This is a scalping thread so you are going for small targets, how small? I dont know its scalping, do what you feel comfortable with given the TF. Entry, well the MMA can do a pretty good job of showing that but as he said you have to give it some screen time, then you will most likely get a feel for the setups based on the different pairs. Maybe also do a google for more info on GMMA and see what info is provided there. Exit? If it goes against you just bail out and maybe look for a better entry on the current wave if it continues or if its a trend turn, wait for a new setup on the new wave to ride. Thats my take on it, maybe Im wrong but I think you probably need to sit down and just watch it and learn the other parts for yourself. A complete A to Z description wont work for everyone regardless of how detailed it is, we are all different, find what works for you.

OK,So he waits for a consolidation and then enters in the direction of the breakout.I suppose whether or not he waits for a pullback before entering is largely immaterial. That would come down to a traders individual risk management style. As you've suggested, I'll put in some screen time and figure out what works for me.
Thanks very much for the help, Guys.

cheers
Ken

I hear people talking about how many brokers hate scalpers and will not tolerate it. But, that's what I don't understand: With such a high frequency of trades shouldn't the brokers love scalpers? I mean they will be generating so much revenue from the spreads (which is the broker's main source of income), plus the scalper provides more liquidity.

Can you explain why a broker would not like a scalper? Is it because some brokers hold positions against (some of) their traders as a means of "making the market?"

Nevertheless, I don't think it will be a problem for me for now because my account is small and I will not be trading huge amounts.

This looks like a good scalping strategy.
http://www.forexfactory.com/showpost...02&postcount=1

There might not be 4 setups in a couple hours on one currency pair, but by using it across several pairs you should be able to find many setups quickly.