And this is why I need a scalping strat...

I already have a long term intraday system thats very profitable. But it really bothers me when I'm barely able to place 1 trade a month using it. In a trending market, I'll place trades every night with it, and its awesome. But when we have months like February and June of this year, I get really annoyed. The market DOES in fact, move quite a bit, but stays in a longer term overall range. (SEE PIC)


Now my system thankfully keeps me out of these choppy markets, but I get very worried at the end of the month when I don't meet a certain profit. I am a full time trader, and it gets really scary when, at the end of the month, you see you made 5 times less money than you did your previous month. Since I have bills and expenses, you can see how this could be a problem lol...

By no means am I wealthy.. Yet... I simply have been trading to supply an income for myself... A very healthy income at that...


What my overall goal here, and with this post, is to find the scalpers out there who on a daily to weekly to monthly basis, make consistent gains with their strategy. If these people even exist on this forum, I would hope after reading this post, they wouldn't mind sharing their strategy.

To wrap it all up here folks:

I am looking for a solid scalping technique that can supplement my income in between the slow months of my intraday system. I have tried many of the techniques posted on FF, and I just can't seem to wrap my head around a lot of them. They almost always seem to be based on some lagging MA or a repainting indicator. Some people report having success with it, while most report failure. I myself try these systems only to fail as well after a week and dozens of trades later, trying them.


Can someone please help? Sorry for the lengthy post!

Yep i have stop using any indicator wich laggin (all of them) and start to be more in winning side.

here system what not lag and is most used here for those
who do this for living.

http://www.forexfactory.com/showthread.php?t=2331

If your going to try and scalp a lower TF chart you have to put the daily, weekly and monthly pivots on your chart, as well as the 00 and 0050 psych levels. Sometimes I may pull a fib on the last larger time frame move also. Once you put those items on your chart and look at a 1m chart it will be apparent why price is stopping, stalling, and reversing at certain levels.

Why dont you check out Billy Ray Valentine's "No brainer Trades" thread out.
It's an indicator free method based on support & resistance and PA.
Good forum, good guys and most importantly a sound method.

http://www.forexfactory.com/showthread.php?t=86429



And there is a VSA (Volume Spread Analysis) forum run by ShamusFamous, focused on interpreting and predicting price movement based on the volume (though in FX its tick volume) associated with the individual bars.
Very good stuff and quite a few people who are on Billy Ray's thread like to mix it with VSA.

http://www.forexfactory.com/showthread.php?t=157629


Makes sense and those methods complement one another.

However I think that whether one should scalp or trade long term depends to a great deal on ones personality, but hey, you can only find out if you try it.


I'd be quite interested to know how your long term method works if you dont mind telling?

I use a variation of the 3 ducks system. Just search "3 ducks" in the search bar of the forum, and you'll find the thread


Thank you all who have contributed so far. I will be looking deeply into the suggested systems above.

Keep 'em coming


Thanks again.

-JA$ON

After reviewing the systems people recommended, it seems to me these are not really short term or scalping methods.


Anyone else have any ideas?

Would be greatly appreciated. Thanks!

Both of the 'systems' in the links Mary Pippins posted can be used for scalping, individually or in conjunction with one another. It's just a matter of time frame, I believe both of those threads were posted with the 1H charts in mind to trade, but all relevant principals could be brought down to 5M charts without much hassle.

Don't jump from one system to another every 2 weeks.
Find something that you find promesing and stick to it even
in the bad times. Marry you strategy. Share good and bad times.

Wait at least 6 month before thinking about a divorce. It's not that there aren't enough good systems around which can produce positive gains when handled well and fitted with a sound MM. It's just that most people tend to
abolish something that not working for 2 weeks or longer.

If you keep visiting the Trading Discussion Forum every day and look for yet another scalping strat you will never make it.

IMO you just need to keep it very, very simple for short TF's. Very basic PA (the less "A", the better) so you can see what the market's up to.

That's it - nothing fancy.

Note: To modify for long TF's see above.

Someone posted this a while back which piqued my interest. You might get a few ideas from the techniques, although not all are transerable to the FX market.

I appreciate the advice, but when I see a system that does really well in a trending market, then gets raped on reversals and ranging, then I know its crap. And I do believe in KISS, so I don't like adding a new indicator everyday to it to help decrease the amount of losses. All these indicators do is keep you out of more trades, and most of the time, good trades.
No way in hell am I gonna simply WASTE 6 months of my trading to devote to a strategy I don't even know works. I never did that with any other system, and I am making excellent money now. With scalping, I don't believe it to be any different.

Maybe you just have to add you personal discretion to make it profitable.

I've never traded a pure mechanical system which was profitable on it's own.