5M Channel Scalping - 100pips \ week | Forex Factory

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5M Channel Scalping - 100pips \ week

  • #1
  • First Post: Apr 23, 2009 7:03am Apr 23, 2009 7:03am
A strategy I have been trading for a month now... Works great.
Its stupidly simple, but it works.. So I don't mind =]

Basically - I trade pullbacks from channels after a breakout. I focus on tight stop loss, reasonable Risk:Reward ratio and pre-calculation of take profit. I don't use indicators nor trailing stop loss of any kind. I like 'Fire and forget' type of strategies - Enter and go back to sleep hahaha.

I will write a thorough guide later, with instructions of the exact place to enter, how to determine Stop Loss and Take Profit.

Meanwhile.. Enjoy these examples:
http://2.bp.blogspot.com/_Zrd_lB3pUm...Frw/s320/5.jpg

http://2.bp.blogspot.com/_Zrd_lB3pUm...MbE/s320/4.jpg

http://4.bp.blogspot.com/_Zrd_lB3pUm...FYA/s320/3.jpg

http://4.bp.blogspot.com/_Zrd_lB3pUm...Oco/s320/2.jpg

http://2.bp.blogspot.com/_Zrd_lB3pUm...gGw/s320/1.jpg
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  • #2
  • Apr 23, 2009 7:24am Apr 23, 2009 7:24am
M256,

Looking forward to learning the details of your trading methodology...looks great!

Thanks for sharing!

Bob in Wisconsin
  • #3
  • Apr 23, 2009 8:00am Apr 23, 2009 8:00am
Looks good.
Thanks for sharing.
  • #4
  • Apr 24, 2009 1:32am Apr 24, 2009 1:32am
So like I said I am going to post the system here....

First of all, the main thing is the entry.
My entries are based on pullbacks, so we are going to start by learning how to identify a pullback.
Pullback occurs when price retests a level it broke in the past. So if you look the chart I attached...

We see that price had broken through a support line, and tested it.
If price goes down (a bearish candle formed) I will enter the trade.
For longs the story is a bit more complicated, so please be patient...

How exit is calculated:
First of all, calculate the channel size - Decide on a price point, and subtract the price of support from the price of resistance.
Look at the chart I attached to see the channel size.

These are the basic rules. I will post the extended rules in the next couple of days... I also post them in my blog along with other systems I trade.

I will post daily trades here so you guys could learn and profit too! :-)

Good trading everyone!
Attached Image (click to enlarge)
Click to Enlarge Name: 6.jpg Size: 237 KB
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  • #5
  • Apr 24, 2009 7:57am Apr 24, 2009 7:57am
Note the channel on USDCHF. It is only 37 pips in size, so I will enter only if stop loss will be 10-13 pips. We'll have to see the exact signal to know for sure.

It also looks like a FLAG in 15M, which empowers the assumption of a short trade.

Entry will be made after breakout, when price retest the support.
I will require that price broke the horizontal support there, just in case.
Attached Image (click to enlarge)
Click to Enlarge Name: 7.jpg Size: 181 KB
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  • #6
  • Apr 24, 2009 9:24am Apr 24, 2009 9:24am
Quoting M256
Note the channel on USDCHF. It is only 37 pips in size, so I will enter only if stop loss will be 10-13 pips. We'll have to see the exact signal to know for sure.

It also looks like a FLAG in 15M, which empowers the assumption of a short trade.

Entry will be made after breakout, when price retest the support.
I will require that price broke the horizontal support there, just in case.
How do you determine your SL?
Thanks
  • #7
  • Apr 25, 2009 8:11am Apr 25, 2009 8:11am
I enter by candlestick signals, and I put SL 1 pip above high or 1 pip below the low of the candles. It is hard to explain, I 'll show it in some pictures..

BTW, Look how the trade I have shown here in LIVE created a exact pullback and got to target nicely.
Attached Image (click to enlarge)
Click to Enlarge Name: 9.jpg Size: 210 KB
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  • #8
  • Apr 25, 2009 9:20am Apr 25, 2009 9:20am
Quoting M256
A strategy I have been trading for a month now... Works great.
Its stupidly simple, but it works.. So I don't mind =]

Basically - I trade pullbacks from channels after a breakout. I focus on tight stop loss, reasonable Risk:Reward ratio and pre-calculation of take profit. I don't use indicators nor trailing stop loss of any kind. I like 'Fire and forget' type of strategies - Enter and go back to sleep hahaha.

I will write a thorough guide later, with instructions of the exact place to enter, how to determine Stop Loss and Take Profit....

Great to see some price trading, well done........

Even better to see you don't trade straight off the break out you wait for the retrace to confirm it....

all the best with this.
  • #9
  • Apr 26, 2009 12:49am Apr 26, 2009 12:49am
Quote
Great to see some price trading, well done........

Even better to see you don't trade straight off the break out you wait for the retrace to confirm it....

all the best with this.
Thanks.

Trading plan for next week:
3 Set-ups in the making, if a pullback will occur I will enter.


http://3.bp.blogspot.com/_Zrd_lB3pUm...6Kg/s320/3.jpg
http://2.bp.blogspot.com/_Zrd_lB3pUm...gws/s320/2.jpg
http://3.bp.blogspot.com/_Zrd_lB3pUm...bKs/s320/1.jpg
Good trading.
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  • #10
  • Apr 27, 2009 12:23am Apr 27, 2009 12:23am
Anyone who had traded the set-ups I posted would have made the easiest 3% ever!
Attached Image (click to enlarge)
Click to Enlarge Name: usdjpy.jpg Size: 124 KB
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  • #11
  • Apr 27, 2009 4:47am Apr 27, 2009 4:47am
I trade this type of setup when I see it. Very high win rate, especially when the retest is a pinbar.

Like your chart in post #4.
  • #12
  • Apr 27, 2009 5:21pm Apr 27, 2009 5:21pm
Nice system.

I canīt wait to read the rest.

Keep on the good work and thanx for sharing.

http://www.forexfactory.com/images/icons/icon14.gif
  • #13
  • Apr 28, 2009 4:09am Apr 28, 2009 4:09am
What I have already written is enough to start trading and profiting from this pattern...

If you have questions do not hesitate to ask
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  • #14
  • Apr 28, 2009 7:36am Apr 28, 2009 7:36am
Another trade from yesterday that made +2%, that 5% on account in one day!



http://2.bp.blogspot.com/_Zrd_lB3pUm...320/eurjpy.jpg
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  • #15
  • Apr 29, 2009 12:01pm Apr 29, 2009 12:01pm


http://1.bp.blogspot.com/_Zrd_lB3pUm...20/rrratio.jpgA setup from today, that was 'legally' OK, but the Risk:Reward ratio was 1:1 and thus unsatisfying. I didn't enter. Another rule you should mind...
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  • #16
  • Apr 29, 2009 12:51pm Apr 29, 2009 12:51pm
Quoting M256

http://1.bp.blogspot.com/_Zrd_lB3pUm...20/rrratio.jpgA setup from today, that was 'legally' OK, but the Risk:Reward ratio was 1:1 and thus unsatisfying. I didn't enter. Another rule you should mind...
We don't know how to check our R/R ratio, because you haven't told us how the Stop Loss is derived.
Why not at least tell us that?
Thanks
  • #17
  • Apr 29, 2009 12:57pm Apr 29, 2009 12:57pm
You are right - I will explain.

First of all, Let me describe a bit of my philosophy about stop loss.
Stop losses should be at a strategic level, not calculated by a predetermined number. We put stop loss because we know, that if price passes a certain point - the basis for our position has evaporated. So basically, we don't know the stop loss until the actual signal has been formed.

In this system:
In short trades: stop loss is places 2 pips above the high of the bar we entered (or the high of previous bar, which one is the highest)

In long trades: stop loss is places 2 pips below the low of the bar we entered (or the low of previous bar, which one is the lowest)
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  • #18
  • Apr 29, 2009 1:03pm Apr 29, 2009 1:03pm
Quoting M256
You are right - I will explain.

First of all, Let me describe a bit of my philosophy about stop loss.
Stop losses should be at a strategic level, not calculated by a predetermined number. We put stop loss because we know, that if price passes a certain point - the basis for our position has evaporated. So basically, we don't know the stop loss until the actual signal has been formed.

In this system:
In short trades: stop loss is places 2 pips above the high of the bar we entered (or the high of previous bar, which one is the highest)

In...
Sounds good.
Thanks for the info.
I think we're ready to hear the rest of it, when you can.
I know you said there is a trick to entering longs that you would tell us about.
Thank you.
  • #19
  • Apr 30, 2009 6:07am Apr 30, 2009 6:07am
billbss - I will post the entire system, don't worry. BTW What I already posted is enough already. But I won't spare knowledge from you guys =]

EURUSD Potential Trade:
http://4.bp.blogspot.com/_Zrd_lB3pUm...320/eurusd.jpg

Wait for pullback to occur, take profit = 60 pips.
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  • #20
  • Apr 30, 2009 8:11am Apr 30, 2009 8:11am
And... +2.4% !
70 pips in less than 1 hour...



http://1.bp.blogspot.com/_Zrd_lB3pUm...0/eurusd-1.jpg

I hope you guys took the trade with me...
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