I would like to gather together a few fellow traders who trade in the style I'm currently trading in. Since the euro fell into shambles I have been unable to trade my previously profitable M5 price action strategy and had to develop a new method to scalp the uncertain currency on a lower time frame.
I always hear from other traders that we have to go with the trend, to follow the big moves and forget about trying to pick tops and bottoms. The vast majority of traders say this. Well, the vast majority of traders are not profitable. Listening to them in the past never got me anywhere wheras thinking for myself and going against what the masses and the brokers instructors tell me has been the way I've made money.
I want to talk about scalping small profits out of short term price reversals. I'm not looking for a strategy as I am doing fine at the moment already. But I would like to see if any of you also pick tops and bottoms on the short term timeframes and why you think most traders say to avoid this style.
I find I am able to scalp 10 pips from tops and bottoms with a very high win rate in either trending conditions or ranging conditions on the M1 timeframe. I use a fixed stop of -9 pips, leaving me down -10.7 for each loss and up +9.3 for each win. A slightly worse than 1:1 RR. My win rate is very high though and that is what makes this so profitable.
If there is a solid trend I mainly look for trades in the direction of the trend. If there is a range I take either side. Ranges are my favourite market condition to trade. I stop for news and market opens. And I trade from 6am -12pm EST. I use an RSI, a stoch and simple price action analysis to determine entries and I usually exit for 10 pips, sometimes less if I get signs that the move is weakening off and the trade is no longer valid. I won't go into the exact details of the trading strategy as this thread is not for that, plus I have spent many thousands of hours to get here and I really believe that with this method, dedicated screen time is key.
I didn't use to believe picking tops and bottoms was a valid method but after a few years of watching the M1 charts for an average of 12 hours per day I am able to enter within just a few pips of the reversal most of the time. For a so called random market there is a great deal of predictablility with this style of trading.
I would love to hear thoughts from traders using similar styles as well as from traders who believe picking tops and bottoms is not profitable.
I always hear from other traders that we have to go with the trend, to follow the big moves and forget about trying to pick tops and bottoms. The vast majority of traders say this. Well, the vast majority of traders are not profitable. Listening to them in the past never got me anywhere wheras thinking for myself and going against what the masses and the brokers instructors tell me has been the way I've made money.
I want to talk about scalping small profits out of short term price reversals. I'm not looking for a strategy as I am doing fine at the moment already. But I would like to see if any of you also pick tops and bottoms on the short term timeframes and why you think most traders say to avoid this style.
I find I am able to scalp 10 pips from tops and bottoms with a very high win rate in either trending conditions or ranging conditions on the M1 timeframe. I use a fixed stop of -9 pips, leaving me down -10.7 for each loss and up +9.3 for each win. A slightly worse than 1:1 RR. My win rate is very high though and that is what makes this so profitable.
If there is a solid trend I mainly look for trades in the direction of the trend. If there is a range I take either side. Ranges are my favourite market condition to trade. I stop for news and market opens. And I trade from 6am -12pm EST. I use an RSI, a stoch and simple price action analysis to determine entries and I usually exit for 10 pips, sometimes less if I get signs that the move is weakening off and the trade is no longer valid. I won't go into the exact details of the trading strategy as this thread is not for that, plus I have spent many thousands of hours to get here and I really believe that with this method, dedicated screen time is key.
I didn't use to believe picking tops and bottoms was a valid method but after a few years of watching the M1 charts for an average of 12 hours per day I am able to enter within just a few pips of the reversal most of the time. For a so called random market there is a great deal of predictablility with this style of trading.
I would love to hear thoughts from traders using similar styles as well as from traders who believe picking tops and bottoms is not profitable.