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  • #78,501
  • Mar 22, 2009 11:08am Mar 22, 2009 11:08am
Quoting tar
EUR professional traders only , for scalping EUR ( 50 - 100 times daily ) based on price action and momentum , what is the tightest reasonable stoploss if the spread is ( 2 pips ) , 4 pips stop is ok ?
Well let's see, you are trading 100 times a day with a stop-loss of 4 pips including the spread so that's a 2 pips stop loss.. let's assume your risk/reward ratio is 1 to 1 in such system, so that makes your tp at 2 pips!

now from these 100 trades you were right 70 times out of 100!

that's 20 pips in your pocket with a 70% of sucess and 200 for your broker!
Fay All Time Return: -98.7%
  • #78,502
  • Mar 22, 2009 11:09am Mar 22, 2009 11:09am
Quoting fayz0r
Well let's see, you are trading 100 times a day with a stop-loss of 4 pips including the spread so that's a 2 pips stop loss.. let's assume your risk/reward ratio is 1 to 1 in such system, so that makes your tp at 2 pips!

now from these 100 trades you were right 70 times out of 100!

that's 20 pips in your pocket with a 70% of sucess and 200 for your broker!
sigh being a broker is good
  • #78,503
  • Mar 22, 2009 11:12am Mar 22, 2009 11:12am
Quoting fayz0r
Well let's see, you are trading 100 times a day with a stop-loss of 4 pips including the spread so that's a 2 pips stop loss.. let's assume your risk/reward ratio is 1 to 1 in such system, so that makes your tp at 2 pips!

now from these 100 trades you were right 70 times out of 100!

that's 20 pips in your pocket with a 70% of sucess and 200 for your broker!
no , target will be based on price action from 1 or 2 pip if it didnt work well up to tens of pips after moving the stoploss if i caught a rally or a good move ....
  • #78,504
  • Mar 22, 2009 11:17am Mar 22, 2009 11:17am
Quoting tar
no , target will be based on price action from 1 or 2 pip if it didnt work well up to tens of pips after moving the stoploss if i caught a rally or a good move ....
imho, I can't imagine a profitable system which sets the stoploss always a pre-defined number of pips, as 'whenever I'm in, my stoploss is 4 pips'

your stoploss should vary with the market variation ( not changed once spot ), rather it is the last high/low of a wave, dip, breakout, TL breakout.. and it can't be always fixed to an x number of pips!
Fay All Time Return: -98.7%
  • #78,505
  • Mar 22, 2009 11:26am Mar 22, 2009 11:26am
I think to set such a tight stop loss is a recipe for disaster, because just a minuscule price movement against you is enough to kick you out, which severely limits your amount of winning trades.

Anyway, is it even possible to set such a close stop loss? my trader (Saxo Bank) doesn't let me set stop losses closer that around 20 pips, I always figured this may be some sort of standard.
  • #78,506
  • Mar 22, 2009 11:29am Mar 22, 2009 11:29am
Fayz0r : For daytrading u r totally right but when scalping with the trend or when level failed to be broken 100 times daily u need a predefined stop , i remember a young germany trader did this 2 or 3 pips stop using oanda software and he was up 5500% in one month on a demo contest , he made 3000 trade in on month , ofcourse this is a demo contest he claims he made nice profits on the live account 2 , anyway lets forget about him , i came to this thread cuz all traders here trade EUR and i wonder what is the tightest reasonable stop will be on the EUR for scalipng ...
  • #78,507
  • Mar 22, 2009 11:29am Mar 22, 2009 11:29am
Quoting fayz0r
Attachment
a very good plan ..imo
  • #78,508
  • Mar 22, 2009 11:31am Mar 22, 2009 11:31am
Quoting Tenshi28
I think to set such a tight stop loss is a recipe for disaster, because just a minuscule price movement against you is enough to kick you out, which severely limits your amount of winning trades.

Anyway, is it even possible to set such a close stop loss? my trader (Saxo Bank) doesn't let me set stop losses closer that around 20 pips, I always figured this may be some sort of standard.
IG let me to attach a stop with my trade ( min 4 pips including spread )
  • #78,509
  • Mar 22, 2009 11:32am Mar 22, 2009 11:32am
Quoting tar
no , target will be based on price action from 1 or 2 pip if it didnt work well up to tens of pips after moving the stoploss if i caught a rally or a good move ....
Then you are not scalping.

Scalping is in and out regardless of whether the markets takes off or not.

There are some who would not agree with this. But then they don't know what the true definition of scalping is either.
  • #78,510
  • Mar 22, 2009 11:33am Mar 22, 2009 11:33am
4pips sounds too tight even for me, Spread + 4 or just 4 ?? cause like 7 fair enough, and I'm a scalper of sorts kinda but not really but yes but who knows
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #78,511
  • Mar 22, 2009 11:37am Mar 22, 2009 11:37am
Quoting SunTrader
Then you are not scalping.

Scalping is in and out regardless of whether the markets takes off or not.

There are some who would not agree with this. But then they don't know what the true definition of scalping is either.
100 times is scalping , but sometimes Eur gives u a good ride so u should be greedy and u should add to ur position , sometimes u cannot let such a move to pass without taking advantage of it ...

stop 4 = 2 spread + 2
  • #78,512
  • Mar 22, 2009 11:40am Mar 22, 2009 11:40am
Quoting tar
100 times is scalping , but sometimes Eur gives u a good ride so u should be greedy and u should add to ur position , sometimes u cannot let such a move to pass without taking advantage of it ...

stop 4 = 2 spread + 2
when you state your stoploss is 4 including the spread, so basically your stoploss is 2 pips.. so if the euro made 2 ticks against you, you are out..
that's too tight for the euro nowdays!
Fay All Time Return: -98.7%
  • #78,513
  • Mar 22, 2009 11:43am Mar 22, 2009 11:43am
Quoting fayz0r
when you state your stoploss is 4 including the spread, so basically your stoploss is 2 pips.. so if the euro made 2 ticks against you, you are out..
that's too tight for the euro nowdays!
mmm . u r right but what is the best predefined stop for scalping , 10 pips i feel its wide for scalping
  • #78,514
  • Mar 22, 2009 11:45am Mar 22, 2009 11:45am
I think 10 pips including spread is reasonable, unless you are talking about entering and exiting a trade in literally seconds, then maybe a tighter stop loss would be advisable.

But hey, everybody will tell you a different number, you should do whatever works best for you.
  • #78,515
  • Mar 22, 2009 11:45am Mar 22, 2009 11:45am
Quoting tar
mmm . u r right but what is the best predefined stop for scalping , 10 pips i feel its wide for scalping
are you going to enter randomly?
Guess not, so your stoploss is so much related to the technique you are using to enter the market!
Fay All Time Return: -98.7%
  • #78,516
  • Mar 22, 2009 11:51am Mar 22, 2009 11:51am
Quoting tar
100 times is scalping , but sometimes Eur gives u a good ride so u should be greedy and u should add to ur position , sometimes u cannot let such a move to pass without taking advantage of it ...

stop 4 = 2 spread + 2
One has to be flexible and change strategies as required, imo.
  • #78,517
  • Mar 22, 2009 11:55am Mar 22, 2009 11:55am
I used to Scalp with a 13pip SL, but if I felt I was on the wrong side I'd exit before the SL hit to preserve cash.

It's tricky Rules are :-


1. Further away the SL, higher the odds of the trade getting into profit.
2. Further away the SL, your profits need to be higher.

All trades start at -2 ( for you ), so you need 4 up pips to make 2pips, and only 2 down pips to cost you 4pips, so you need to profit 66% of the time to break even, if your average profit is 20pips then you only need to profit 20% of the time to break even.

End of the day it depends entirely on how good your entrys are.

Last 15trades all winners , only 1 woulda hit SL if I trade with SL's.

Personally, Manual in and Manual out, little blips don't ruin good trades then.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #78,518
  • Mar 22, 2009 11:57am Mar 22, 2009 11:57am
Quoting Turveyd
I used to Scalp with a 13pip SL, but if I felt I was on the wrong side I'd exit before the SL hit to preserve cash.

It's tricky Rules are :-


1. Further away the SL, higher the odds of the trade getting into profit.
2. Further away the SL, your profits need to be higher.

All trades start at -2 ( for you ), so you need 4 up pips to make 2pips, and only 2 down pips to cost you 4pips, so you need to profit 66% of the time to break even, if your average profit is 20pips then you only need to profit 20% of the time to break even.

End of the...
I second this
Fay All Time Return: -98.7%
  • #78,519
  • Mar 22, 2009 12:10pm Mar 22, 2009 12:10pm
Well, to be honest, I scalp intra-day as well as position trade.

I position trade based on the 15 min timeframe, but mostly based on price action, support and resistance levels, and candlestick patterns like pin bars off the 1H timeframe.

In between I scalp off the 1M timeframe for the EUR/USD, because they have the best spread out of all the majors.

I modified bits of the THV system by Cobra to suit a scalping method, and my stop loss is defined by 300% of ATR (20). Once I'm up 5 pips, I push my position to breakeven + 1 to lock in profits and let it ride, and then close the position if I feel uneasy about the price action, or the trix changes colour. Usually the stop loss will not be more than 10 pips including spread, which means that I may hit the stop loss from time to time, but from the positions that I enter, it's more likely I hit my breakeven + 1 more often that I hit my stop loss.

I've attached a chart to show entry and exit points for my scalping.

Note that the exit points are not the actual exit points that I made, since some would have hit stop loss or more likely breakeven + 1 first before it went that far.

Taking note of support and resistance levels are key to successful scalping, and solid money management is what decides whether you go broke or not.
Attached Image (click to enlarge)
Click to Enlarge Name: 1.jpg Size: 129 KB
  • #78,520
  • Mar 22, 2009 12:19pm Mar 22, 2009 12:19pm
Quoting trading801
stewright.. its too tight right? i am rather new.. so didnt comment
IMHO yes much too tight
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