Scalping for Fun & uh, Profit Too!

I am not the originator of this trade plan. His name is Imransait. His thread can be found here; http://www.forexfactory.com/showthread.php?t=48926

Not sure where thread originator has gone to. I certainly hope he is fine and prosperous.

PLEASE: Before you decide to try this method Thoroughly Read, at least, the first 10-15 pages of the thread linked above. Virtually every question, you could possibly have, is answered, with rare exception. Once you've read the first five pages, and begin just looking at the charts, it should become apparent. The rare exception would be if you are new to 4X and don't yet understand the jargon and some basic concepts regarding trading. For those that fall into this category, it's nothing to be ashamed of, or self conscious about. A great free resource for looking up everything you can think of is babypips.com. I am not affiliated with them. I just believe their info is accurate. I still use them as a resource.

So far I've read the first 20 pages of this amazing thread, researched the structure of the Laguerre indicator (which is 90% foreign language to me), and read other related threads all about the internet, as well as backtesting several pairs and commodities. At this point this research spans about 40 hours.

My preliminary findings for 4X are as follows:
Favorable pairs for the Laguerre indicators;
• gbp/jpy, eur/jpy, gbp/usd, (all of these seem to behave very nicely on most time frames from 1m to [but not limited] to 1Day)
• gbp/nzd on a minimum of 1hr charts, with weekly and daily charts the most favorable. This pair requires a very wide stop. 1,000 pips on a weekly and at least 300-400 on a daily.
• In fact most gbp crosses are worth monitoring for "Perfect Set-Ups". And believe me, there are a plethora of perfect set-ups if you watch and wait for them.
• I've looked at the eur/usd and, so far, I don't feel the love. By all means do more extensive research and see if you can prove me wrong, then post it here and let us know.

Commodities:

My initial studies on gold & silver are not promising. However oil looks to be a slam dunk on 1m & 5m charts. Disclaimer: I don't trade oil because apparently the feds are trying to save US citizens from the perils of trading this commodity. (unbridled sarcasm) Seriously, when oil is volatile it moves a significant distance. Perhaps this is because middle east news is seems to always be on the front burner.

Here's the nuts and bolts:

Rule #'s 1, 2, & 3 - DO NOT Trade if market is in tight range and not in a major open market. i.e. London or US session. Period!
Indicators used :
• LaGuerre 1 ( for entry ) - Gamma 0.55, levels 0.10, 0.90, bars to read 9500 color green
• LaGuerre 2 ( for exits ) - Gamma 0.80, levels 0.10, 0.90 bars to read 9500, color red
• MacD (for entry, & exits) - Settings 5-8-1
• Bollinger bands - 20, 0 and close ( default) ( This is very imp indicator as in uptrend the middle bollinger acts as support and in downtrend it acts
as resistance )
• Recommended - EMA 200 ( Red ) and EMA 60 (Blue) to find support and resistance

Rules for Entry & Exit
=============
Entry Long : when Laguerre 1 is above 0.10 and pointing up & MacD has crossed it's center line on close of candle.
Exit for Long is when Laguerre 2 goes to top and turns down to 0.90 and or when MacD has crossed the -.01 brown line (minus)
Entry for Short : when Laguerre 1 is below 0.90 and pointing down & MacD has crossed it's center line on close of candle.
Exit for Shorts is when Laguerre 2 goes to 0.0 Level and then turns up above 0.10 and or when MacD has crossed the +.01 brown line

TP is when you exit or 20-25 pips, whichever comes first.
I like to have 3 positions.
• T1, or the 1st position, I take off at 10-15 pips, depending on market volatility, or lack thereof, then my stop gets moved up to either -5 or -10.

• T2, or the 2nd profit comes at 20-25 pips. Now my stop gets moved to a minimum of BE.

• T3, my third position rides it out to the finish. This can be any number of scenarios depending on your prerogative. When Laguerre 2 reverses to .1 (for a short) and .9 (for a long) is what the original author suggests. I've noticed on some pairs that the price can reverse as far as .25 (on a short) and .75 (on a long) and still continue in the original direction of the trade. This is up to your discretion. Probably only a few will retrace that far and continue.

You can also use the MacD reverse when it goes back to the .0001 or -.0001 brown line.

• Stop Loss is 15 Pips from entry at all times for 1 minute charts.

OK, I promise no more boring stuff for now. Have a look at the attached charts and that should give you a pretty good idea how this works.

The charts below are on the gbp/jpy. The time is 10 minutes prior to the European market open.

The first one shows 2 vertical lines, which are the difference between using the added MacD (5-8-1) and the 2nd (Lower Laguerre) to confirm entry.

The second show a particularly profitable trade result from 2/24/11, of about 100 pips. Which is not bad for a 1min scalp.

Hi Diamond,
Sad to see this well presented thread hidden away over here! Only came across it after I stumbled on your post #4198 on p280 of the 1M fxprime scalping thread.
I am just wondering about the Daily Pivot. Imran, on p3 of his pdf, mentions "price is above the Daily Pivot" for longs.
Am I correct in assuming that trade direction in your version is not dependant on the Daily Pivot?
Look forward to placing trades soon,
EP