Scalp & Swing | Page 9 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Scalp, scalp, scalp 5,689 replies

To scalp or not to scalp? (Images included) 18 replies

ECN && STP && Scalping && Hedging - Broker Review - Oct 2009 24 replies

Swing highs and swing lows 3 replies

Scalp, Swing or Position Trading? 3 replies

Attachments: Scalp & Swing
Exit Attachments

Scalp & Swing

  • #161
  • Apr 10, 2011 3:33pm Apr 10, 2011 3:33pm
Money Management
Formula: Capitalize-to-risk-ratio

A daily profit about +50.-$ needs a capitalize-to-risk-ratio around 1:10 without any kind of stop loss trading, instead of the risk-to-reward-ratio of 3:1 or 2:1 or so by trading the 2% stop loss rule.

So I have to manage the "equity" or the "free margin" position around 500.-$ in plus (10 times more then the daily win). My personality and my trading concept (say all the corpus rationale of my fx-experience) allows to make a risk definition over the daily win positions.

May be it sounds stupid in one form or another, for me it's an intelligent cognition, simple, efficient & profitable.

Kindest regards
FXcube
  • #162
  • Apr 10, 2011 3:37pm Apr 10, 2011 3:37pm
Beginners could do this (#162 ) with a e.g. 1'000.-$ Account and 0.01 lot sizes. If they make a daily profit around 10.-$ per day they have to capitalize it with a "equity", better a "free margin" position around 100.-$. Then they have only to learn to trade in dynamical concepts, say TCT (Time Cell Trading) at multiple time frames by selecting the best currency pairs at the moment (e.g. M30/H1/H4/Daily) with some scalping ones in between times. Don't forget the "scalping man" by "backfill the warchest". "Does he ever lighten up?"
  • #163
  • Apr 10, 2011 3:41pm Apr 10, 2011 3:41pm
Do I have a specific formula / rule to determine my position sizes?
...like different sizes depending on the timeframe I'm are looking at?

It's very hard to use any form of Position Size Calculator (like http://www.earnforex.com/position-size-calculator), that lets you to calculate the size of the position in units and lots to accurately manage your risks, albeit it works with all major currency pairs and crosses & even though it requires the minimum input values, but allows you to tune it finely to your specific needs. I have predominantly to realign at the 1:10 ratio, due to the fact that I overcharge the trades in scalping times, where I generate some parts of my daily win from short-term trades as well as you know during longer-term trades are running on. I don't make comments which of these open trades (usually ~5-30) are short dated, medium term or long range or currency-cross-pairs, hedging pairs or so. A global formula is that I use smaller lot sizes at long-term pairs and high lotsizes at short-termed currency pairs. It depends a lot of times which probability factor I could match a trade. E.g. if Daily, H4, H1 are signaled a trend I tend to go in with a higher lotsize. A Bullish (Bearish) Counterattack Pattern hasn't for me the same power of argument by contrast with a Bullish Piercing Pattern (Dark Cloud Cover) or a Bullish (Bearish) Engulfing Pattern & higher time frames have for me general more power then PA's at smaller timeframes. I like more to think in dynamical procedures everything flows, so item the currency market. Determining the position size is more affected with the likelihood or a probability factor. When I think the market didn't show a clear trend, it's ranging I like to hedge some trades or select some overspeed crossing pairs in the range of smaller lot sizes.

Kindest regards
FXcube
  • #164
  • Apr 10, 2011 3:44pm Apr 10, 2011 3:44pm
May be it's an interesting approach for Money Management.

I am generate some part of my daily win from short-term trades as well and those are also based on CCI (Top/Bottom) & PA applied to smaller timeframes, sometimes with the Standard Deviation Channel (Insert > Channels > Standard Deviation) & with MACD (12,26,9) & ADX (14).
  • #165
  • Apr 10, 2011 3:47pm Apr 10, 2011 3:47pm
If I enter the intraday-positions with much higher lotsizes how do I handle it, should those run into bigger drawdown (break-out or somethin unexpected happening) as they would affect my equity a lot more quickly?

I have to hedge (or double, triple, quadruple) the deficit or make with other currency pairs a counterbalance in money management. It's more a daily routine to compensate or equate the losses if there are no need of any stop-loss in the forex landscape. What you need is to develop your trading skills that you are able to do this if trades are running aginst you, but it's not a critical factor concerning the determinant of the daily wins. If the wins have a daily medium weight about 30.-$ you need only 20 trading days to counterbalance a 600.-$ deficit. The fewest currency traders think about it! Why? ...because they make more losses then wins, ...contrary it's really easy for an advanced level trader!

Kindest regards
FXcube
  • #166
  • Apr 10, 2011 3:51pm Apr 10, 2011 3:51pm
Résumé

So this is definitely much beyond the "let the losers run" thing, as the risk will new managed actively.
But as I've said it, it really need to have delevoped the trading skills to be able to do so... besided the technical stuff also a big portion of the psycho factor involved here.
  • #167
  • Apr 10, 2011 3:56pm Apr 10, 2011 3:56pm
Quoting moneyrain
Dear Mr.Forexcubes,

Look at your account, it's seam that you're get some serious problems ( especially with 0.06 lot short EURUSD and 0.02 lot hedged GER30J), all entries seam negative at the moment.

I also recognize that most entries without ST ( I don't count hedged ones) so it's that too risky with a small 360 balance account?

I'm a novice trader and from my point of view you're experience and skillfully trader and not to rich to easy blow your account

So get to the main point, base on what TAs, fundamentals or whatever reasons that you...
Hi moneyrain

My, my!
Let's see!

Take a look at #161, #162, #163, #164, #165, #166, #167, #167, please.

Hope it helps!

Kindest regards
FXcube
  • #168
  • Edited 7:18pm Apr 10, 2011 3:58pm | Edited 7:18pm
Quoting moneyrain
Dear Mr.Forexcubes,

I'm a novice trader
Hi moneyrain

So it's absolutely important to set a stop loss and trade with max. 0.01 lot with a minimum 1'000.-$ account.

I wish you success & happiness!

Kindest regards
FXcube
  • #169
  • Apr 10, 2011 11:28pm Apr 10, 2011 11:28pm
Dear Master!

Thank for your efforts to clearify your trading method and MM but it's seam to complex for me to fully understand it ( trying to read again and again). Also found-out your stuff with CCI divergence & SMA, EMA 200 is damp great effective! ( you just blow some fogs in FX market out of my eyes )

I'm also not a big fan of stop-loss or any complex MM at the moment, usually trade with tiny TP + big or without ST, using pending orders to hedge again any big account's crash.
- If price go with me then nothing to say, just try to not so greedy to exit at right time ( before any big price reverse)
- If price go again me and activate the pending orders then I'll trying to predict tops/bottoms to exit long/short positions
Did you practice this method before? How do you think about it's effective?

As my broker allow hedge in GOLD/SILVER free (mean margin if buy & sell with same amount at the same time then only need margin for one-side only) then off-course it's my favorite trading pairs ( great to see their awesome bull-run these days). Considering to open new 5000$ account to join this madness run soon

Other issues that my plan to take a FX/commodity certificate/short course in EU(eye-on UK, Switzerland) or US. Do you know any good course with reasonable fee? Looking forward to get your advise, thank !
Can't wait to see your trading result & tutors soon!
  • #170
  • Apr 11, 2011 4:30am Apr 11, 2011 4:30am
Ger30Jun11, M15, 2011 April 11
DAX


Long @ 7183 (DS1)
Attached Image (click to enlarge)
Click to Enlarge Name: Ger30Jun11, M15, 2011 April 11.jpg Size: 401 KB
  • #171
  • Apr 11, 2011 7:02am Apr 11, 2011 7:02am
Quoting moneyrain
I'm also not a big fan of stop-loss or any complex MM at the moment, usually trade with tiny TP + big or without ST, using pending orders to hedge again any big account's crash.
- If price go with me then nothing to say, just try to not so greedy to exit at right time ( before any big price reverse)
- If price go again me and activate the pending orders then I'll trying to predict tops/bottoms to exit long/short positions
Did you practice this method before? How do you think about it's effective?

Hi moneyrain

May be it's more informative if you could post some charts and your strategy here at this board and we can discuss it all together with all other interested members here at this board. Which kind of indicators do you need? ...or solely price action and some support, resitance levels?
Can I invite you to describe more about your effective trading strategy?

Kindest regards
FXcube
  • #172
  • Apr 11, 2011 7:04am Apr 11, 2011 7:04am
Quoting moneyrain
- If price go again me and activate the pending orders then I'll trying to predict tops/bottoms to exit long/short positions
Did you practice this method before? How do you think about it's effective
I make it also, but at different timeframes and after I have made a multiple time frame analysis. I open some counterbalancing high frequtnly and let the premordial market order running further in the minus. Why? I have make my multiple time frame analysis before, I trust in my trading skills and I'll trade my plan. Market will change.

Planning your trades and trading your plans will reduce a lot of risk and stress in your trading career.

FXcube
  • #173
  • Edited 11:16am Apr 11, 2011 7:38am | Edited 11:16am
Quoting moneyrain
Other issues that my plan to take a FX/commodity certificate/short course in EU(eye-on UK, Switzerland) or US. Do you know any good course with reasonable fee? Looking forward to get your advise, thank !
Hi moneyrain

Basics you could learn at:
http://www.babypips.com/school/

I don't prefere any kind of "good" trading course, due to the fact really good ones could cost money and if it is so why would they give a course when they could earn a multiple of it at the same time by direct trading the forex-market? You even make a lot of money more if you trade instead of implementing trading lessons. Seems for me not logical.

An excellent practically relevant trading stuff you could follow at:
http://www.fxbookies.com/forumdispla...mmunity-Forums

Kindest regards
FXcube
  • #174
  • Edited 9:59am Apr 11, 2011 8:10am | Edited 9:59am
Order Management

Last Friday the Ger30Jun11 Position has been hedged over the weekend. Today it seems for me a good market situation to exit the Sell order at M5 Level and downsize the hedge position in its absolute value (actual: Sell -2.16$, Buy -10.82$, M15/30 Range since 2011 April 05: 7200-7250).

Profit: +16.98$
Attached Image(s) (click to enlarge)
Click to Enlarge Name: GER30Jun11, 2011 April 11, Trade Example, Order Management.jpg Size: 152 KB
Click to Enlarge Name: GER30Jun11, DAX, 2011 April 11.jpg Size: 28 KB
Click to Enlarge Name: GER30Jun11,2011 April 11, Open Orders.jpg Size: 23 KB
  • #175
  • Apr 11, 2011 11:36am Apr 11, 2011 11:36am
USDCHF, M30, 2011 April 11

M30 Hammer and DS1 0.9056 has reached.

Long @ 0.9067
Attached Image (click to enlarge)
Click to Enlarge Name: USDCHF, M30, 2011 April 11.jpg Size: 561 KB
  • #176
  • Apr 11, 2011 11:44am Apr 11, 2011 11:44am
Below is my scrap result today ( base-on tiny TP and big ST strategy)
http://2.bp.blogspot.com/-lEIGiqxoTU...emo+11+apr.gif
From my trade result, silver seam so dangerous now ( should set huge ST or far-away hedge position) but GOLD is OK!

I'm still in mood of learning and my strategy isn't effective enough ( mean above 70% win for ex) but I will post charts very soon here.

Great to see you TP on short GER30J, it's look like a lot of volatile there

I'm not purely a trader as I also work as agent/consultant for a HK broker firm so in order to improve my career, I need some certificates such as CTA, CFA etc

After 5 times blow accounts ( 2500$ ) maybe this is a time to invest bigger (anyway it's not my money and I am not intent for quick& dangerous earn)!

Other issue is how much pips your broker get on spread/commission/swap? Today your account have profit of $172.59, it's that your gain after deduct all of spread/commission/swap?

My broker have spread from 40 to 80$ per lot; commission fix on 40$/lot, swap is depend on each pair
  • #177
  • Apr 11, 2011 12:14pm Apr 11, 2011 12:14pm
Quoting moneyrain
Below is my scrap result today ( base-on tiny TP and big ST strategy)
http://2.bp.blogspot.com/-lEIGiqxoTU...emo+11+apr.gif
From my trade result, silver seam so dangerous now ( should set huge ST or far-away hedge position)...
Good results!
  • #178
  • Apr 11, 2011 12:20pm Apr 11, 2011 12:20pm
2011 April 11
250.-$ Real Account
Target: 1% per Day

Profit: 38.57$

(15 % within 1 Day)
Attached Image (click to enlarge)
Click to Enlarge Name: Profit, 2011 April 11.jpg Size: 53 KB
  • #179
  • Edited 1:41pm Apr 11, 2011 12:37pm | Edited 1:41pm
Quoting Forexcube
USDCHF, M30, 2011 April 11

M30 Hammer and DS1 0.9056 has reached.

Long @ 0.9067
Forexcube, I give you the award for the best organized First Post. It is very clear and clean. I thank you big time for that.
I have a question on the system; at the beginning the prescribed CCI is 14, however I have seen you using 20 and 14 in the same window. Why do you use two. I am not criticizing you, rather I am trying to see what your eyes see in the chart.
Thank you,
Bcarbon
  • #180
  • Apr 11, 2011 12:48pm Apr 11, 2011 12:48pm
Quoting bcarbon
Forexcube, I give you the award for the best organized First Post. It is very clear and clean. I thank you big time for that.
I have a question on the system; at the beginning the prescribed CCI is 14, however I have seen you using 20 and 14 in the same window. Why do you use two. I am not criticizing you, rather I am trying to see what you eyes see in the chart.
Thank you,
Bcarbon
Hi Bcarbon!

It makes no odds!

That makes no difference for my practical trading where I have to switch between the different timeframes often. May be the 20 is a round number, so I take the 20 sometimes. Try the 14 and the 20 at different timeframes and tell me which one could give your trading a tactical advantage, please.

Kindest regards
FXcube
0 traders viewing now