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4% A Day Forever

  • #581
  • Nov 23, 2009 2:14pm Nov 23, 2009 2:14pm
Fool,

What position size do you typically use per scalp to obtain 4% daily? What type of targets/stops do you use or does it depend on each trade?
In Charts We Trust!
  • #582
  • Nov 23, 2009 2:34pm Nov 23, 2009 2:34pm
Quoting X.Oden
Fool,

What position size do you typically use per scalp to obtain 4% daily? What type of targets/stops do you use or does it depend on each trade?
Generally,

I am scalping with a max position size that will give me a 1% account risk based on a 5-pip sl, or in other words, a standard lot per every $5k of account equity.

I commonly kill losers before they hit a 5-pip sl - avg. losers are more in the 3-pip range, as are avg winners. I will set default targets depending on the pa volatility. I'd like to be able to adjust the tp in order to catch a nice move if it happens, but sometimes those nice moves are just too fast to apprehend, so at least if I have a decent tp I won't feel too cheated. Default tp is typically 5 pips, though. So, if I have an average scalp win of 3 pips, that's a 0.6% account increase, and then I only need to hit (lucky!) 7 of those to get 4% (4.2% actually) account increase. Holy cow, how hard is that? Hit (7) 3-pip scalps? Piece o' cake, right?

I am working on letting winning scalps run with trending pa and I am getting better at that, move sl to BE +3 or whatever and move profit target out.

I have set trades in predictable volatility that I use to catch break-outs and those have better r:r - typically like a 5p sl to a 15p tp or better. I like playing those and I hit them more often than not. I might scale down the trade size depending on the situation - its case by case...

The steady diet is scalping for quick winners and I need me a big meal or two every day, too, a couple of 15-pippers or better. I know that if I stick to this plan I can easily do 200 pips a week or more with about 3 hr/day screen time average.

So why don't I just stick to that plan? If I could just focus on this simple plan and not go off on tangents, not get sucked into stupid/bad trades - I still believe that 4%/day is doable. I just keep believing that if I stay alive in the game long enough I will learn to keep out of the newbie pitfalls and discipline will keep getting closer to airtight.

Hope you are raking in the pips, X.Oden - are you gonna be a scalper now, too?
"If The Fool persists in his Folly he will become wise." - William Blake
  • #583
  • Nov 23, 2009 2:51pm Nov 23, 2009 2:51pm
Hey thanks for the info...well its tempting, but my intraday skills as a scalper sucks. I don't have the discipline to close a trade at 5 pip sl....I always admire scalpers, they're possibly the most disciplined and persistent traders around.

On the BE+1, not sure how you are exiting trades, but perhaps if not already, think about scaling out at the peak of the move for 50% of profits and then keep taking 50% off the table for each move at x pips.

This is how I ride the big trades:

Once my position is in the money....can be 20-50-100-150 pips, whatever the case (you have to "feel" the momentum).....then I move SL to BE+1 to cover the spread.....I also close half my position..ex if I have a 1 lot trade, I'll close .50 lots..let the rest run, if I had 20 pips when I closed for half, I'll wait for another 20 pips if I can and close another half or .25 lots and keep going until I run out of gas..or if its really small, I'll set an auto trailer or just close out.

I try to get my gains as close to my SL risk initially before i move anything to BE+1 however so that my risk is never larger than my gains if I can help it...




Quoting The Fool
Generally,

I am scalping with a max position size that will give me a 1% account risk based on a 5-pip sl, or in other words, a standard lot per every $5k of account equity.

I commonly kill losers before they hit a 5-pip sl - avg. losers are more in the 3-pip range, as are avg winners. I will set default targets depending on the pa volatility. I'd like to be able to adjust the tp in order to catch a nice move if it happens, but sometimes those nice moves are just too fast to apprehend, so at least if I have a decent tp I won't feel too cheated....
In Charts We Trust!
  • #584
  • Nov 23, 2009 2:57pm Nov 23, 2009 2:57pm
Another trader I know uses 3 units (if you typically run 1 lot, in this case, you'd be using 3 lots) and takes the first lot out at the move's peak when momentum is weakening...this gives him "insurance" money for his next trade such that if his stops were only 5 pips, he can now add whatever the gains were from his 1st lot trade + 5 pips for a wider sl. His 2nd lot is taken at the next wave and so forth..

As for me, if I'm only trading 1 pair, I will use 2 units, at the peak of the move, bank 1 unit, let the other run, on the bounces following a retracement, I'll add 2 more units, while move previous entries to BE+1 if allowed...I keep going until I feel the move has ended, then I close all units...

This allows me to maximize the pippage as I milk the trend for its range in movement.
In Charts We Trust!
  • #585
  • Nov 23, 2009 3:01pm Nov 23, 2009 3:01pm
Quoting X.Oden

This is how I ride the big trades:
Yup, big moves are cool. It's ironic, but lots of tiny little trades can be very very profitable, as well. I have aspirations of being able to trade both ways but I don't know how realistic that is.

Pretty soon I am going to set up a separate account for scalping, & also have a separate account for longer-term trades. I have been meaning to do that for a while. I think having a scalping account will help me focus on scalping more. Just focus on scalping in that account, nothing else. No need to have a huge margin buffer there. Focus & discipline are definitely key for consistent scalping success....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #586
  • Nov 23, 2009 3:12pm Nov 23, 2009 3:12pm
I've had a few beers and traded-never do that again but trading while you sleep is downright scary!! lol That's funny! I have done my share of sleeping in front of the screen but the mouse was far away! lol
  • #587
  • Nov 23, 2009 5:38pm Nov 23, 2009 5:38pm
Quoting The Fool
Yup, big moves are cool. It's ironic, but lots of tiny little trades can be very very profitable, as well. I have aspirations of being able to trade both ways but I don't know how realistic that is.

Pretty soon I am going to set up a separate account for scalping, & also have a separate account for longer-term trades. I have been meaning to do that for a while. I think having a scalping account will help me focus on scalping more. Just focus on scalping in that account, nothing else. No need to have a huge margin buffer there....

This is the way I always have traded and you're right, it can be profitable. But it does take a lot of discipline, that's what took me so long to learn.

Best of luck.
  • #588
  • Nov 23, 2009 5:43pm Nov 23, 2009 5:43pm
Are the sleep trades profitable ???? If so Sleep and trade more, get rich while sleeping, sounds pretty good to me
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #589
  • Nov 23, 2009 5:50pm Nov 23, 2009 5:50pm
Thanks Kim,

It seems so simple, doesn't it? Just do this one simple thing, scalp for a few pips at a time, and do it over and over and over. Kill every single losing trade that you perceive to be a losing trade and kill it quick. The thing is, and my last week's results are a perfect example - you can not afford the luxury of making mistakes. Even one mistake - one trade that you let slide then try to average down - can blow out your account, You can have a 99% win rate and that 100th trade that you made the big bad mistake on could be your last. I am being overdramatic but you get the gist.

Wishing you continued success!
"If The Fool persists in his Folly he will become wise." - William Blake
  • #590
  • Nov 23, 2009 5:53pm Nov 23, 2009 5:53pm
Quoting Turveyd
Are the sleep trades profitable ???? If so Sleep and trade more, get rich while sleeping, sounds pretty good to me
ok, now you are sleeping outside the box. With the right microchip brain implants & biofeedback controls, sleep trading could be the next wave. I can see the late-night commercials now: "Just 4 easy payments of $19.95! Buy in the next 15 minutes and get the deluxe cheese straightener absolutely free!"
"If The Fool persists in his Folly he will become wise." - William Blake
  • #591
  • Nov 23, 2009 5:57pm Nov 23, 2009 5:57pm
Quoting The Fool
ok, now you are sleeping outside the box. With the right microchip brain implants & biofeedback controls, sleep trading could be the next wave. I can see the late-night commercials now: "Just 4 easy payments of $19.95! Buy in the next 15 minutes and get the deluxe cheese straightener absolutely free!"

I've had 100's of trading dreams but strangely only 1 where I'm making money the rest well you can guess So I fear I'll be even more self destructive in my sleep!!

Likely sell tapes ( okay CD's / MP3's ) which teach you trade while you sleep, hmmmmmmm, plan B is found, if I can't profit trading profit from telling others how to in there sleep LOL
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #592
  • Nov 23, 2009 6:20pm Nov 23, 2009 6:20pm
Quoting Turveyd

Likely sell tapes ( okay CD's / MP3's ) which teach you trade while you sleep, hmmmmmmm, plan B is found, if I can't profit trading profit from telling others how to in there sleep LOL
What do you want to bet there are more people making money selling forex educational materials & related paraphenalia than there are by actually trading it...?
"If The Fool persists in his Folly he will become wise." - William Blake
  • #593
  • Nov 23, 2009 7:08pm Nov 23, 2009 7:08pm
Quoting The Fool
What do you want to bet there are more people making money selling forex educational materials & related paraphenalia than there are by actually trading it...?



If you include people selling live trading tips ( which all suck ) then no thanks thats a bet I don't want to take.

Wonder how many truely profitable people there are on this site, I'd bet it's less than 50 which is SAD really.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #594
  • Nov 23, 2009 7:12pm Nov 23, 2009 7:12pm
Quoting Turveyd
Wonder how many truely profitable people there are on this site, I'd bet it's less than 50 which is SAD really.
ha some of the best only post once in a blue moon...
"If The Fool persists in his Folly he will become wise." - William Blake
  • #595
  • Nov 24, 2009 12:25pm Nov 24, 2009 12:25pm
Quoting The Fool
Thanks Kim,

It seems so simple, doesn't it? Just do this one simple thing, scalp for a few pips at a time, and do it over and over and over. Kill every single losing trade that you perceive to be a losing trade and kill it quick. The thing is, and my last week's results are a perfect example - you can not afford the luxury of making mistakes. Even one mistake - one trade that you let slide then try to average down - can blow out your account, You can have a 99% win rate and that 100th trade that you made the big bad mistake on could be your last....
Thank you!
Another thing I just wanted to add, sorry I know it's your thread There are better pairs to scalp then others. One biggie mistake I made was starting with the GBP. Honestly I lost almost every trade.

The best pairs that I have found are the AUD and CAD (I prefer the AUD) the daily range is great for scalping, no big drops or pushes up that will wipe out your account.
I have had one loss this month trading this pair and a couple other trades for the month. ($6.72)


Kim
  • #596
  • Nov 24, 2009 12:56pm Nov 24, 2009 12:56pm
Quoting kimd

The best pairs that I have found are the AUD and CAD (I prefer the AUD) the daily range is great for scalping, no big drops or pushes up that will wipe out your account.
I have had one loss this month trading this pair and a couple other trades for the month. ($6.72)
Hi Kim,

Since I started I have been pretty much exclusively on E/U. Lowest spread, so thats where I went. Typical, I suppose. Someone posted an article or an excerpt from somewhere on FF not long ago and the gist was that E/U was actually, statistically, the least profitable pair to trade, while AUD/USD was the most profitable. Maybe E/U was least because thats where most newbies go?

We recognize that a certain degree of ranginess is good in scalping - keeps you out of large breakouts that can sneak attack your trades if you are poorly protected. But some of the notably ranging pairs I have tried to trade - E/G, E/C - are just too slow.

Anyway, I have been wanting to branch out from E/U and trade another pair & I will be doing that soon. I have also thought about going with AUD or CAD. Both are commodity currencies - and that might tend to simplify things. Trading AUD, also, I can do during Asian session and catch some decent PA (right? - I'm assuming, still have not spent much time watching the AUD)....
"If The Fool persists in his Folly he will become wise." - William Blake
  • #597
  • Nov 24, 2009 4:07pm Nov 24, 2009 4:07pm
That's the good thing about the AUD, I find it moves like the Euro but not such deep movements. Keep an eye on it for a few days. The CAD seems to be a bit choppier, similar to the NZD which I have dabbled in as well. Being more flexible in the pairs gives you more opportunity

I did the same thing as you. I moved a bit of cash to a new account and was bound to learn how to scalp. It's always a work in progress of course. I like the idea of getting 4-7 pips in maybe 6 quick trades a day. As time goes on maybe I'll do more.

Here's my progress in the last two weeks. I only post this to show the amount of trades and the average p/l.
What type of profit do you like per trade? I am interested to know your strategies as well.

Gross Profit: 412.84 Gross Loss: 6.70 Total Net Profit: 406.14 Profit Factor: 61.62 Expected Payoff: 7.52 Absolute Drawdown: 0.00 Maximal Drawdown: 6.70 (1.82%) Relative Drawdown: 1.82% (6.70) Total Trades: 54 Short Positions (won %): 33 (96.97%) Long Positions (won %): 21 (100.00%) Profit Trades (% of total): 53 (98.15%) Loss trades (% of total): 1 (1.85%) Largest profit trade: 25.86 loss trade: -6.70 Average profit trade: 7.79 loss trade: -6.70 Maximum consecutive wins ($): 44 (326.11) consecutive losses ($): 1 (-6.70) Maximal consecutive profit (count): 326.11 (44) consecutive loss (count): -6.70 (1) Average consecutive wins: 27 consecutive losses: 1
  • #598
  • Nov 24, 2009 4:16pm Nov 24, 2009 4:16pm
Just throwing my 2 cents in, I like trading aud more than eu. In fact, for some reason-most of my losses have been on eu. I think the low spread makes me stupid-er.
  • #599
  • Nov 24, 2009 4:53pm Nov 24, 2009 4:53pm
Hi Fool,

I know you've been scalping for a good while now, have you managed to double your account already?



Quoting The Fool
Hi Kim,

Since I started I have been pretty much exclusively on E/U. Lowest spread, so thats where I went. Typical, I suppose. Someone posted an article or an excerpt from somewhere on FF not long ago and the gist was that E/U was actually, statistically, the least profitable pair to trade, while AUD/USD was the most profitable. Maybe E/U was least because thats where most newbies go?

We recognize that a certain degree of ranginess is good in scalping - keeps you out of large breakouts that can sneak attack your trades if you are poorly protected....
In Charts We Trust!
  • #600
  • Nov 24, 2009 4:55pm Nov 24, 2009 4:55pm
Fool,

I trade 22 pairs.....the most profitable in my opinion are CADJPY and GBPCAD.....



Quoting The Fool
Hi Kim,

Since I started I have been pretty much exclusively on E/U. Lowest spread, so thats where I went. Typical, I suppose. Someone posted an article or an excerpt from somewhere on FF not long ago and the gist was that E/U was actually, statistically, the least profitable pair to trade, while AUD/USD was the most profitable. Maybe E/U was least because thats where most newbies go?

We recognize that a certain degree of ranginess is good in scalping - keeps you out of large breakouts that can sneak attack your trades if you are poorly protected....
In Charts We Trust!
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