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the most secure 5 pip scalping system

  • #61
  • Nov 9, 2010 5:54am Nov 9, 2010 5:54am
Quoting jzw
Out of a 90 pip rally you'd be happy with 10?

Any good trader is going to buying and adding on the climb. When the momentum is strong and therefore making money easier, those are the times that you need to be pushing to make the most money.

Put it this way - if you put on a trade and you are quickly 10 pips up what does it mean? It means that you were right about the direction. Is that the time you should be getting out? The market has just said you were right.

Sometimes the right thing is to scalp out 10 pips but the difference between an amateur...
Hi friend,
the trend was about 80-90 pips, and we could catch 30-40 pips out of it with this system, we can follow the trend in higher timeframes once we're in profit, but at this point we're discussing profitability of the system.
I don't say don't continue your trades, you can do it if have the skill, but here I'm explaining this system signals,
I would be happy if anyone can teach us how to continue the trades and I'm all ears to learn something here.
  • #62
  • Nov 9, 2010 6:22am Nov 9, 2010 6:22am
it's important for you to understand. this is not a "method". this is a watered down, more humane version to trade ema's and the trix.

that's all it is.

we could do the following to make it less watered down:
add more ema's, or guppy ema
have 15m trix also in agreement
make sure price action is outside of the ema's on 1m, 5m and 15 all in the right direction.
add an adx or cci or rsi.

If trix agreeing on 3 tf's. and adx on 3 tf's and ema's agreeing on 3 tf's plus trading in direction the 4h and 1h trend, if the wait time and frustration and patience involved in that is a 10/10, your watered down version would be like a 6.5/10. as a result, you will have more losers, but it is more do-able.

i am not suggesting you go for the 10/10 difficulty way of doing it. unless your experienced, you could go insane or give up. your way is fine. but just understand, there are probably quite a few folks trading the way you are suggesting right now.

the only thing is the r:r ratio. once you got a better r:r ratio figured out, avoid the news and just go live. no point in demo'ing as it is a proven method. i would say as long as you are willing for a 25 pip gain: 15 pip loss ratio, you'll probably be able to make 100->150 pips a week. that's pretty good. but you will definately have losing days. even consecutive ones.
  • #63
  • Nov 9, 2010 6:33am Nov 9, 2010 6:33am
So are you using an EA like Cavemanager, or are you closing the trades manually.
  • #64
  • Nov 9, 2010 6:37am Nov 9, 2010 6:37am
Quoting chiba_san
it's important for you to understand. this is not a "method"....
Of course it's a watered down version, sorry if I mentioned the name in a wrong manner.
I know what you're saying, but I'm trying to get more signal and filter them by taking 5pips in initial move, I don't say I'm right but I'm trying it for now, if you have any suggestion in this way that we can keep on with more signal please share with me,
and don't get mad,
peace
  • #65
  • Nov 9, 2010 6:38am Nov 9, 2010 6:38am
Quoting neild1971
So are you using an EA like Cavemanager, or are you closing the trades manually.
Manually
  • #66
  • Nov 9, 2010 6:43am Nov 9, 2010 6:43am
So your closing trades manually, and you don't have losing trades.
  • #67
  • Nov 9, 2010 6:43am Nov 9, 2010 6:43am
I'm showing these as this system signals for better understanding of the rules.
Attached Image (click to enlarge)
Click to Enlarge Name: don't enter.JPG Size: 124 KB
  • #68
  • Nov 9, 2010 6:47am Nov 9, 2010 6:47am
Quoting neild1971
So your closing trades manually, and you don't have losing trades.
Please look at previous pictures, I have a partial close at 5pips, then at 10 pips then I put trailing stop for the rest, this is my strategy for now.
I don't get the question, what's the relation between closing manually and losing. would you explain more?
  • #69
  • Nov 9, 2010 6:49am Nov 9, 2010 6:49am
Yes you might capture 30-40 pips but each of those entries you needed to risk 10 and could easily have been taken out by the noise. A 10 pip retracement in the Euro is nothing, just noise.

I'm not suggesting you change your system if it works for you but if you stand back and think about what happened in the Euro this morning you'll see that the big money today was not made by the scalpers. That could easliy be the best trade on the Euro this week.

The signs for a good trade were there before it broke above 1.3860 we are now trading at 1.3960. Which looks like a natural point to take profits but the trend is still up.

The best way to learn is to look at the chart and note down what you think was happening at various points.
  • #70
  • Nov 9, 2010 6:53am Nov 9, 2010 6:53am
Quoting exking
... I have a partial close at 5pips, then at 10 pips then I put trailing stop for the rest...
You are worsening your r:r by taking profits so soon. You would do better in the long run, by adding to your position as the market proves you right.
  • #71
  • Nov 9, 2010 6:55am Nov 9, 2010 6:55am
Quoting jzw
Yes you might capture 30-40 pips but each of those entries you needed to risk 10 and could easily have been taken out by the noise. A 10 pip retracement in the Euro is nothing, just noise.

I'm not suggesting you change your system if it works for you but if you stand back and think about what happened in the Euro this morning you'll see that the big money today was not made by the scalpers. That could easliy be the best trade on the Euro this week.

The signs for a good trade were there before it broke above 1.3860 we are now trading at 1.3960....
Thank you jzw,
I like to work on bigger timeframes but I don't have the skill yet,
I spent so much time on scalping methods and I'm trying to get something out of it, and I know not every trying in forex would be in a right direction.
thanks for your points
  • #72
  • Nov 9, 2010 7:00am Nov 9, 2010 7:00am
Quoting exking
Please look at previous pictures, I have a partial close at 5pips, then at 10 pips then I put trailing stop for the rest, this is my strategy for now.
I don't get the question, what's the relation between closing manually and losing. would you explain more?
I am just really hopeless at closing trades so i use an EA. Have you had any losing trades yet? If you have what is the percentage of Winning vs Losing trades.
  • #73
  • Nov 9, 2010 7:00am Nov 9, 2010 7:00am
Quoting jzw
You are worsening your r:r by taking profits so soon. You would do better in the long run, by adding to your position as the market proves you right.
so what are you suggesting?
with this system 1/4 of the time price comes back and close the breakeven so I decided to have a partial closing at 5pip profit, but another thing is most of the time the price doesn't retrace more than 7-8 pips and again it comes back in direction. any suggestion?
  • #74
  • Nov 9, 2010 8:36am Nov 9, 2010 8:36am
first let me say that where to take profits is a much harder decision than entering or taking a stop and whatever you do is going to be wrong some of the time.

If you keep a spreadsheet of what happens after you exit you should get an idea of the distribution of returns. Normally this is quite variable. I remember on the Euro that swings of 75-125 pips tend to happen frequently. Now your entries won't be at the low of the swing but it does give you some idea of what is reasonable for that market. It all comes down to having a feel for the market you are trading. Also you need to look at where you are in the big picture. This mornings move up in the Euro will have caught all the Euro bears leaning the wrong way helping fuel the rally.
  • #75
  • Nov 9, 2010 10:04am Nov 9, 2010 10:04am
Quoting exking
The trade I just took

What is the new indicator at the bottom of your chart and what are its rules?
  • #76
  • Nov 9, 2010 10:26am Nov 9, 2010 10:26am
Quoting billbss
What is the new indicator at the bottom of your chart and what are its rules?
it's trix called indicator, the base indicator of what you see as MTF trix, in MTF trix you see just the colors but with this you can see overbought, oversold, trix crossover, and crossing over 50, I added it so everyone can understand where the MTF trix comes from and maybe someone get an idea to improve the system, you got it in the first post, you just need to put it on the chart.
  • #77
  • Nov 9, 2010 10:30am Nov 9, 2010 10:30am
Quoting billbss
What is the new indicator at the bottom of your chart and what are its rules?
The indicator is from THV3 by cobra and friends, but this one has been modified, there is an updated one in the new version of THV, the rules can be found at the original thread. http://www.forexfactory.com/showthread.php?t=127271 There is over 1400 pages, the indicator is below;
Attached File(s)
File Type: ex4 THV3 Trix V6.1 all false.ex4   31 KB | 381 downloads
  • #78
  • Nov 9, 2010 10:37am Nov 9, 2010 10:37am
Quoting neild1971
I am just really hopeless at closing trades so i use an EA. Have you had any losing trades yet? If you have what is the percentage of Winning vs Losing trades.
If you have problem with closing your trades, one of the things that causes this can be your broker,
For win loss ratio I should say this is the second week of demoing and I honestly didn't get a loss yet, there were some wrong signals by the indicators but noticing about supports, resistances and psych levels, filtered all those wrong signals till now.
as soon as I get a stop loss hit I let everyone know, I promise.
  • #79
  • Nov 9, 2010 10:41am Nov 9, 2010 10:41am
Quoting neild1971
The indicator is from THV3 by cobra and friends, but this one has been modified, there is an updated one in the new version of THV, the rules can be found at the original thread. http://www.forexfactory.com/showthread.php?t=127271 There is over 1400 pages, the indicator is below;
Thanks neild1971
  • #80
  • Nov 9, 2010 10:46am Nov 9, 2010 10:46am
Quoting jzw
first let me say that where to take profits is a much harder decision than entering or taking a stop and whatever you do is going to be wrong some of the time.

If you keep a spreadsheet of what happens after you exit you should get an idea of the distribution of returns. Normally this is quite variable. I remember on the Euro that swings of 75-125 pips tend to happen frequently. Now your entries won't be at the low of the swing but it does give you some idea of what is reasonable for that market. It all comes down to having a feel for the market...
Thanks jzw,
but practically what do you think is the best way to know we are in the direction of the trend?
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