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the most secure 5 pip scalping system

  • #81
  • Nov 9, 2010 10:53am Nov 9, 2010 10:53am
Quoting exking
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.
Thanks for the response, nothing wrong with my broker, I am a newbie and have found the EA to be my best method until I find my feet. Maybe with alot more experience and alot more reading I will have as much success as you and drop the Cavemanager EA. Yes the indicators do give wrong signals sometimes but it sounds like your knowledge can pick those signals. All the best.
  • #82
  • Nov 9, 2010 11:09am Nov 9, 2010 11:09am
I was not online today and I didn't get a chance to trade but here are some of the signals by the system,
I'll show more examples and see if there were wrong signals when I come back 2 hours later.
see you
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  • #83
  • Nov 9, 2010 11:15am Nov 9, 2010 11:15am
Quoting neild1971
Thanks for the response, nothing wrong with my broker, I am a newbie and have found the EA to be my best method until I find my feet. Maybe with alot more experience and alot more reading I will have as much success as you and drop the Cavemanager EA. Yes the indicators do give wrong signals sometimes but it sounds like your knowledge can pick those signals. All the best.
It's not anything big, it's simple, I'll comeback 2 hours later and explain everything you want.
  • #84
  • Nov 9, 2010 12:31pm Nov 9, 2010 12:31pm
Quoting exking
Thanks jzw,
but practically what do you think is the best way to know we are in the direction of the trend?
Your position shows a profit
  • #85
  • Nov 9, 2010 1:04pm Nov 9, 2010 1:04pm
Quoting jzw
Your position shows a profit
Hi jzw,
I see you around but I don't see any suggestion from you to improve the system.
Are you demoing it? Did you do any changes?
Let us have some your experience about the system.
  • #86
  • Nov 9, 2010 1:15pm Nov 9, 2010 1:15pm
back to your question about trend - I certainly don't know the best way to identify a trend but a simple way is to use moving averages.I've used 9 and 21 emas before. So price above the 9 which is above the 21 defines the trend as up.

I tend to look at it in terms of pure price action (although I do have some ma's on my charts). Firstly on any time frame the market cycles thru periods of trend and range. A range is a price region where people generally agree on the price. When the market breaks out of a range it is (by my definition) in a trend. If I'm right then the market should accelerate away from the range and the trend will be obvious. Otherwise the market will go sideways (expanding the range) or back down into the range. By looking at various time frames you get and idea for where the different traders will see ranges.

the thing about the Euro this morning is that I was thinking that it was in a downtrend off 1.42. But what happened? It made a marginal new low and then reversed. Now the Euro had already dropped quite a long way and any reversal was going to catch the late bears leaning the wrong way. So that was enough for me to take a shot at the long side. I timed my entry by taking a break-out of a 3 min range but we were still within the overnight range.

I'm going to give myself a glass of wine for calling 1.3960 earlier as EUR has now reversed completely and is below the morning lows.
  • #87
  • Nov 9, 2010 1:29pm Nov 9, 2010 1:29pm
These are some examples of the signals today that I didn't get a chance to trade them, I'm reviewing the today's market for signals and I want to see it there is any wrong signal.
I'll keep you posted, screen by screen.
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  • #88
  • Nov 9, 2010 1:30pm Nov 9, 2010 1:30pm
Quoting jzw
back to your question about trend - I certainly don't know the best way to identify a trend but a simple way is to use moving averages.I've used 9 and 21 emas before. So price above the 9 which is above the 21 defines the trend as up.

I tend to look at it in terms of pure price action (although I do have some ma's on my charts). Firstly on any time frame the market cycles thru periods of trend and range. A range is a price region where people generally agree on the price. When the market breaks out of a range it is (by my definition) in a trend....
Good thing to know
thanks
  • #89
  • Nov 9, 2010 2:06pm Nov 9, 2010 2:06pm
another one
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  • #90
  • Nov 9, 2010 2:20pm Nov 9, 2010 2:20pm
pic
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  • #91
  • Nov 9, 2010 2:21pm Nov 9, 2010 2:21pm
Quoting exking
Hi jzw,
I see you around but I don't see any suggestion from you to improve the system.
Are you demoing it? Did you do any changes?
Let us have some your experience about the system.
I haven't tried the trading the system. I'm not really a huge fan of mechanical systems because I feel that they are better traded by computers. But I do like to look at the ideas behind them.

Basically it looks like a lot of other short term momentum systems. You wait until the market moves far and fast enough in one direction until all your indicators turn green and then try and grab a few pips before the market reverses. There are many ways to skin that cat and at the end of the day they are all the same. I doubt if any one combination of indicators is much better than any other. There simply is no holy grail.

You can always scalp out 5-10 pips in a liquid market like EUR. Its just not that hard although the number of threads on FF devoted to just that would suggest otherwise.

Nothing wrong with scalping a few pips if that is how you want to make money. I'll scalp a few pips if I see a high probability opportunity but I don't trade to scalp a few pips because I know that the bigger trades are where the real money is.
  • #92
  • Nov 9, 2010 2:30pm Nov 9, 2010 2:30pm
Quoting jzw
I haven't tried the trading the system. I'm not really a huge fan of mechanical systems because I feel that they are better traded by computers. But I do like to look at the ideas behind them.

Basically it looks like a lot of other short term momentum systems. You wait until the market moves far and fast enough in one direction until all your indicators turn green and then try and grab a few pips before the market reverses. There are many ways to skin that cat and at the end of the day they are all the same. I doubt if any one combination of indicators...
do you have any idea how to continue those trades which are closed at breakeven after giving the first 5 pips? If I don't put breakeven some of the trades go in loss but I didn't calculate them yet, maybe the win/loss ratio would be better. Do you have any idea?
  • #93
  • Nov 9, 2010 2:48pm Nov 9, 2010 2:48pm
I just took 6pips but again the rest is closed at breakeven
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  • #94
  • Nov 9, 2010 3:54pm Nov 9, 2010 3:54pm
Quoting exking
do you have any idea how to continue those trades which are closed at breakeven after giving the first 5 pips? If I don't put breakeven some of the trades go in loss but I didn't calculate them yet, maybe the win/loss ratio would be better. Do you have any idea?
On your last chart it looks like EUR has already dropped 60 pips by the time you are entering. Not really the kind of place you can hold a trade for longer because where would your stop go? EUR could rally 20 pips and still be in a downtrend.

One idea would be if you look at where your signal occurs relative to the most recent break-out level, if a signal occurs near that level then you could hold it longer, but only if it is the first signal on this leg down. Then you might be in at the start of the acceleration otherwise you are probably best to scalp.

Your system is a momentum one and trying to mess with it will probably make things worse.

For me, it just gets you in too late, well after it is already clear to everyone and his dog that the trend it down.

Stepping back a bit, I think many on FF think that they can make money by scalping for a few ticks and while that is definitely possible, what kind of a goal is that when there is much more money to be made by not limiting yourself to scalping.
  • #95
  • Nov 9, 2010 4:05pm Nov 9, 2010 4:05pm
Quoting jzw
On your last chart it looks like EUR has already dropped 60 pips by the time you are entering. Not really the kind of place you can hold a trade for longer because where would your stop go? EUR could rally 20 pips and still be in a downtrend.

One idea would be if you look at where your signal occurs relative to the most recent break-out level, if a signal occurs near that level then you could hold it longer, but only if it is the first signal on this leg down. Then you might be in at the start of the acceleration otherwise you are probably best...
Thank you, very useful points, I got what you're saying.
About bigger timeframes is two things: I prefer more screen watching but not be in trades for a long time. And I don't really think I have the skill to work on them since I always have been spending my time over scalping. Maybe I don't have the motivation to learn and maybe it's not that hard that I think.
  • #96
  • Nov 9, 2010 4:13pm Nov 9, 2010 4:13pm
What do you think about this?
the signal is valid by the system but do you think it's logical to enter a trade after a 17pip 1min candle? considering that it's not during the news time
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  • #97
  • Nov 9, 2010 4:19pm Nov 9, 2010 4:19pm
today was an amazing day on the EUR 150 pips up 225 pips down. You should print out a 5min chart because these kinds of days don't come along all that often. There was so much money to be made trading EUR today it was unreal but most people won't have. They will have been happy with their 10 pip scalp. I traded the rally but didn't trade the drop which I'm really upset at espescially once we got back under 1.39. I thought I had made enough $$$ in the morning that I didn't need to trade and I gave up $$$ by doing so. Not smart at all.

>> I always have been spending my time over scalping

If you are so focused on scalping you can miss the wood for the trees.
  • #98
  • Nov 9, 2010 5:22pm Nov 9, 2010 5:22pm
I opened a demo account with 500.00$ yesterday when I started the thread, I took 6 trades yesterday and 3 trades today as I wasn't online and didn't get the chance to trade and there were at least 5 other valid signals today.
Anyway all those 9 trades were winning trades and no losses yet, my account is 727.40$ now.
All trades were 0.5 lot and I had my first TP with at least 5 pips with 0.3 lot, second TP at least 10 pips with 0.1 lot and 4-5 pip trailing stop with 0.1 lot.
Not all trades get the chance to have second TP and trailing stop as I put breakeven after getting the first 5 pips.
4 of the 9 trades get the chance to have both second TP and trailing stop.
  • #99
  • Nov 9, 2010 7:50pm Nov 9, 2010 7:50pm
What time do you trade? I heard asian session is good for scalping because its calm.
  • #100
  • Nov 9, 2010 8:50pm Nov 9, 2010 8:50pm
Based on your system is the diagram below correct where I should enter the trade and exit, and take my first TP at 5 pips.
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