Fractal SCALP

This method can work for you. Anyone. It may seem technical to start but is a very simple check and balance entry. I am a full time trader for the past 2 years. This thread will help keep me focused on doing my diligence in every trade, that way they can become examples or at least take them all as thou they would be examples. Kind of like having the boss look over your shoulder. I have been working on my discipline for some time as I like many of you enjoy the excitement, being in the market, but sometimes end up jumping in a trade before confirming all details. I will admit there is discretion in some trades, if they were 100% mechanical we could set it and forget it. This is the system I believe everyone can follow profitably but of course the more experienced you are the better the results. There are so many opportunities that you do not have to feel like you missed the boat if you pass up a trade. I trade all different times of day but found that it is best to stay out of the market from 17:30 GMT until 22:00 GMT, in my experience this is the market reset period and it usually consolidates. Other than that troll the pairs on both time frames (that will keep you busy) and you can easily knock down the 50 pip range everyday regardless of market conditions. This is one of my main methods, is time tested. Follow the rules, when in doubt stay out. Stick with it , ask questions, happy trading.




I am not the fastest at posting or following up with the latest questions as I am usually monitoring multiple pairs, but I will do everything I can to make sure your on the right track as soon as possible.








Basics:


Time Frame: 5 and/or 15


Pip Target: 5-15


Stop: look for 1:1 ratio or better based on setup


---------------------------
Indicators:


Fractals


SMA 50


Ichimoku (std settings - 9,26,52 sandy brown solid)


Ichimoku ( 2,3,5 Blue solid- this cloud can be overkill, not really needed but I took a liking to it and have on all my charts)


**** Both of these are cloud only set other line colors to none ****

Momentum (16) three levels, + @ 100.0675 , 100 @ 100, - @ 99.9325


Trend Magic (10, 20) this is the only custom indi you need to add to majority MT4




----------------------------


Entry: ex: for longs, opposite for shorts


Conditions: 1. Price above Cloud (sandy) and/or 50ma
2. Fractal formation below previous 1-2 candles (it takes 1 or 2 candles to appear as that's what's required to be a fractal)

3. Current candle breaks high of fractal candle or next candle (usually see an IB form then next candle breaks that high, this is ideal, all
happens quite quickly)
4. Candle that gives entry signal is above Trend Magic
5. Momentum is above "+" level on signal candle or even better if previous candle also above



Exit:


Target: 5-15 pips based on currency and timeframe
Ex: GU 5min 10pip, 15min 15pips, UJ 5min 6-8pip, 15min 10-12pip


Stop: Candle close below Trend Magic
**** Use this as a way to gauge risk in a trade based on the target you have. ****





===============================================================================


template and indicator provided


next post will have a chart example to clarify.

I hope this chart lays out my rules a little more clear. this was a live trade on Aud $ as you can also see in terminal window in pic

Thanks for sharing your knowledge and method with us here. Im sure many people will appreciate your expertise. Is it possible to post a larger screenshot however, to see the trade more clearly?

Would be highly appreciated Thanks once again mate

Sorry reduced too much 1st time , hope this works for everyone.

I think that your "breakout low enter" is not good because your fractal would appear on the next candle close.

Thanks robp440 for the system. I tried to make an expert, but have some questions:
1. For Sell signals Momentum should be below 99.9325?
2. For closing position, bar should be above (below) Trend Magic means that Low (High) of the bar should be above (below) Trend Magic?

On the screenshot below there are 3 sell positions (1, 2 - win and 3 - loose). Are they correct?

You do have to understand the formation of the fractal at this point is inevitable as the previous low fractal was also broken. There are trades missed due to not seeing a fractal form until after it happens, you just can't catch all of them unfortunately. The fractal indicator itself is a kind of crutch or confirmation tool, when looking over mult pairs helps keep you in line as flipping timeframes and following multiple pairs can cloud the memory and the arrow can quickly remind you of most recent consensus of market direction.

Hope I made this clear enough, basicly saying you may have to read adhead of what the indicator will print or have a solid understanding of what a fractal is and does.

This is where time trading plays to everyones advantage, the more you do it easier it gets or comes naturally.

1. yes look for M line to break below range for sells

2. Close, as in a stop, is a close on opp. side of Trend magic from direction of trade.

your screen shot seems to look like you have 2 simulated losses and the last was the only win and I would prob have missed your first trade and the next pull back after taken an easy entry short. Also looks like your stop is higher on the 2nd trade than a close above TM. See if this helps and post another chart of a new trade we can clarify more on it.
Thanks for interest,

Ok, thanks.
Sorry, my mistake. I was going to ask about this: "Candle that gives entry signal is above Trend Magic".
"Candle is above" means OHLC is > Trend Magic value?
What you mean "missed first trade"? Previous trade was at 14:10 and close at 14:33.
Yes, it was because I test by opened bars, not "every ticks". But 15 pips SL seems to be very small for M5 GU -- positions, closed with above rules are very rare.

I have attached my expert, so you can see results with our eyes If you decide to add some complement, I'll update it ASAP. Backbone of expert is already done, so it will be easy

Hi,

How are the trades going with this system

Yes, keep us updated.

just sold AUD/USD at .9024

stop close above Trend magic or 8pip take profit

post results shortly

Trade complete 8 pips Tp hit as I posted,

Will post some live trades like this to give good example of system.

Chart to match trade

Rob, I've been playing on demo another method similiar to this on the 15 min chart(Craig Harris)...getting mixed results but may have some potential. Have you been trading this method for 2 years ? tex

I had participated to the webinar by Craig Harris one and a half week ago. He was the invited guest to the CompassFx. It was very interesting concept but due to my full-time job, I can't glue to the computer all the time. As a result, I can't follow the concepts very well.

It seems to me that Craig Harris is kind of similar to Rob's but Rob uses different indicator, whereas Harris basically uses Stock and the other 2 MAs, even though he didn't discuss about the number of periods for his MAs.

Let us know how your testing is going on with Rob and Craig's method. I assume you would be able to combine both method.

Cheers

Sure will keep you updated. From the last webinar i noticed a 20 sma did show up as he was speaking....don't know if this is the correct one or not.. He has a blog with about 500 QA on it so you can get a feel how this one works. I've been trading Outside and inside bars once a fractual pops up- prefferabbly the 5 candle pattern but price will take off a lot before this is complete.

From my experience so for about a 1 to1 RR is all we can get with the targets..would like to know more about the stop/reversal/recovery technique .when price backfires over the 1 hr and 4 candles.Anyway if you can spare 5K you can get his mentoring for a year

tex

I will keep my eye on this thread. I like quick scalping methods. Paris

What kind of accuracy do you have with this method, Rob? What percentage of wins versus losses? Thanks, Paris

My history with this method is little over 6 months, I use it in addition to a couple others. I usually catch 1 a day as I browse through the charts. I only take what I consider to be close to ideal set ups. That meaning I watch for pull backs to the trend magic and a small inside bar as the next candle followed by a high or low break of the IB in the period after the IB. In this manor the fractal indicator shows up as the candle opens after the IB closes. This gives you confirmation before the IB break out happens you are watching a high probability trade. Ideal is the IB is only a couple pips off the Trend Magic.

The drawback of waiting for this type of setup to occur is having to stay on top of the pairs actively to catch the 6-10 pip move. I do increase my trade size as the high probability scalp has a tight stop, so my 6-10 pips are not literally 6-10 when comparing to other trades taken. Could be closer to equaling 20-25.

The point of this thread is to give others that are sitting actively at their screen can grab an easy trade when they pop up. Also for me to keep active with it by sharing and possibly improving the number of high probability setups that come each day.

I do not know anything about this other method mentioned earlier but will check it out .

Thanks