Rather than just jump in straight away why don't you put a pending order at the top and the bottom of the previous candle and cancel the opposite order when the other one is hit? That way you have some sort of directional bias in your favour.
Hey Fxscalp, thanks for your post and time taken to reply. Yea, there are a lot of "if's" and "maybe's" but you gotta try.
Can you point me in the direction of your system? Sounds great - you makin good pips with it?
AndyG
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Yeah, sent you a PM. Be happy to chat with you online sometime and share some ideas with you.
Lately on AUD I prefer to go long and when short signals come around.... Euro has been good for those.
Right now I'm not sure which way everything is going because Euro seems to have found a bottom recently.
But here's a couple of possible scalp trades that are good for 10 or 20 pips.
*Of course, I prefer long trades on AUD, but if you dial down to a 30 second chart, you could catch momentum as it begins. It is going to take some skill though to stay out of a whole lot of crap trades. Good Luck !!...
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Hey price, thanks for your interest in replying. Really appreciate the pointers you gave - will have to think some more about this.
AndyG
Rather than just jump in straight away why don't you put a pending order at the top and the bottom of the previous candle and cancel the opposite order when the other one is hit? That way you have some sort of directional bias in your favour.
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Hello Hugh Briss, really glad someone of your stature stopped by. Thanks for your post - I will look into this.
AndyG
In FX I think nothing is impossible. But one thing you should bear in mind is that price will retrace at least a few pips at the start of the hour most of the time. For example if the hour candle is a cell, when the next bar opens, the price may go up say 8pips before resuming the down trend again. If your spread is reasonable, you ill make your 2 or 3 pips on your counter trade most of the time. problem will arise when your one loss wipes out 5 or more of your wins. This has happened to me before. Ther was a time when I was registering a 7 to 3 win loss trades but was always in the red because the losses were far bigger than the wins.
Give your idea a try ( atleast in demo). We shall follow to see how it goes.
What about to enter only buy if the previous candle show Pull direction (Up-Green) and enter only Sell when the previous candle show Bear direction (Down-Red)
this is the first filter to this method with stop loss as the price break the low of the previous candle in case of buy and at the high in case of sell
with TP 5 pips and enter another order if the price violate the high of the previous candle in case of Buy and when the price break the low in case of sell
I'm not a programmer and i don't like ! , but only I try to catch my view !
Hello all, I just thought I would give a bit of feedback on this and let you know where I am with it.
If you have read through the thread you will know that I received some very good advice and pointers from various contributors, for which I am grateful. Also, gdf1953 (Terry) very kindly took some time and applied his knowledge to produce an EA which is a couple of pages back - thanks again Terry.
Using the advice given and the EA supplied I started looking again at the original idea, fiddled and played with the EA and moved from the 1 hour TF to where I am know, the 1 day TF.
My RR ratio has changed to 1 to 5, buy and sell still open at 00:00 (GMT+2 broker time), there is a little wriggle room between the stop losses for the PA to decide which way it wants to go and the TP is obviously 5 x SL.
I did a bit of back testing (EURUSD) using the strategy tester on MT4 (I know "back testing is useless......blah, blah.....") but it shows a ROI of around 42% for last year. I started a forward test last night with the following result
10/8/12 buy -5 pips
10/8/12 sell 25 pips
I know "one swallow doesn't make a summer" but it's an ok start and I'm sure there will be losses. This is without considering letting the winners run with trailing stops for example, or perhaps you experienced traders can suggest a way of improving this.
Hey Andy, how can we manage the spread? We need "5+spread" for SL and "25+spread" for TP?
Which pairs should we trade? I'm interested in forward test
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Hi lucariga, at the moment the spread is included in the 5 SL and 25 TP - my broker has quite alow spread of around 1. If you can suggest a better way of handling this I would be grateful to hear it. I have only started demo testing this on EURUSD for the time being. I would be interested in the results of your test.
AndyG
