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A scalping system for discussion

  • #1
  • First Post: Edited Feb 7, 2013 8:35pm Feb 6, 2013 10:03pm | Edited Feb 7, 2013 8:35pm
I originated this system 5 years back. a few people around me know. Now i share it and want to see more opinions.

I analyzed trading hours, and from the simple facts that Forex is 24 hours trading and there is a gap of 2 hours after US close and Tokyo opening. Yes, it is Sydney hour but observing the movement of E/U pair in this 2 hours let me conclude that it is ranging with a very high certainty. within this 2 hours, which is 5am to 7am Singapore time(GMT21-23), there is rarely any important news to cause big movement.

The pair will be confined within Bollinger Band. the profit in pips are most of the time single digit, but risk is small so leverage can be high to net a nice gain. a disciplined trader can get 15% return a month by trading 2 hours a day, 4 days a week.

i always trade 5 mins chart. Bband is 14,2,2, 1 or 2 trades within 2 hour period, highly leveraged.
  • #2
  • Feb 7, 2013 1:25am Feb 7, 2013 1:25am
Nice idea. I've thought about that myself. I understand that volatility moves the market in big waves but it also comes with more uncertainty in my opinion.

I've wondered about what type of results one could get by trading during the Sydney session.

I look forward to the discussion that can come from this thread.
  • #3
  • Feb 7, 2013 7:17am Feb 7, 2013 7:17am
Quoting david11
I originated this system 5 years back. a few people around me know. Now i share it and want to see more opinions.

I analyzed trading hours, and from the simple facts that Forex is 24 hours trading and there is a gap of 2 hours after US close and Tokyo opening. Yes, it is Sydney hour but observing the movement of E/U pair in this 2 hours let me conclude that it is ranging with a very high certainty. within this 2 hours, which is 5am to 7am Singapore time(GMT21-23), there is rarely any important news to cause big movement.

The pair will be confined...
Hi,

Yes, that's the case. But, what is your scalping system idea then? Buy on the touch of the lower band and sell on the touch of the higher band? I feel courious.

Happy Pips

gonso
  • #4
  • Feb 7, 2013 8:32am Feb 7, 2013 8:32am
Quoting gonso
Hi,

Yes, that's the case. But, what is your scalping system idea then? Buy on the touch of the lower band and sell on the touch of the higher band? I feel courious.

Happy Pips

gonso
entry is as u said. exit depends on risk appetite.
  • #5
  • Feb 7, 2013 11:59am Feb 7, 2013 11:59am
What time frame - 5M, 15M? Boll. Band default settings? And could you post a chart pls. Thank you
Quoting david11
I originated this system 5 years back. a few people around me know. Now i share it and want to see more opinions.

I analyzed trading hours, and from the simple facts that Forex is 24 hours trading and there is a gap of 2 hours after US close and Tokyo opening. Yes, it is Sydney hour but observing the movement of E/U pair in this 2 hours let me conclude that it is ranging with a very high certainty. within this 2 hours, which is 5am to 7am Singapore time(GMT21-23), there is rarely any important news to cause big movement.

The pair will be confined...
  • #6
  • Feb 7, 2013 1:42pm Feb 7, 2013 1:42pm
Good evening. Just a quick first time post for me. I'm looking for a way to trade the hours you have mentioned. so I am looking forward to following this thread. Thank you in advance.
  • #7
  • Feb 7, 2013 2:02pm Feb 7, 2013 2:02pm
I will be trade 1m time frame by this method..tonight..
Attached Image (click to enlarge)
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The market was bullish, turned bearish, and you'are brokish!!!
  • #8
  • Feb 7, 2013 8:32pm Feb 7, 2013 8:32pm
Quoting piprac
What time frame - 5M, 15M? Boll. Band default settings? And could you post a chart pls. Thank you
use 5 min , default BBAND 14,2,2
  • #9
  • Feb 7, 2013 9:30pm Feb 7, 2013 9:30pm
I also like those times to trade, so I'm interested in your results. Do you only trade E/U?
  • #10
  • Feb 7, 2013 10:21pm Feb 7, 2013 10:21pm
david11,

I like your thinking and it makes some good sense. A bit too early in the morning for me though! But having said that, I will be watching this post with interest to see how it develops as it would be nice to get up early, trade a couple of hours then have the rest of the day to do other stuff. I have attached the i-ParmonWorkTime custom indicator for those that don't have something to identify specific trading times on your charts. Just remember it relates to times on your broker's charts, not your local time, so you have to work out exactly what hours this method refers to on your charts and set it accordingly. Cheers. Jim
Attached File(s)
File Type: mq4 i-ParamonWorkTime.mq4   5 KB | 687 downloads
File Type: ex4 i-ParamonWorkTime.ex4   5 KB | 554 downloads
JAGfx
  • #11
  • Feb 8, 2013 2:09am Feb 8, 2013 2:09am
Quoting Timo7
I also like those times to trade, so I'm interested in your results. Do you only trade E/U?
yes, only EU.
mostly coz of spread.
  • #12
  • Edited Feb 9, 2013 2:43pm Feb 8, 2013 3:18pm | Edited Feb 9, 2013 2:43pm
Anyone: Sorry for the questions from an old guy but I assume the 2 & 2 refers to shift and deviation, correct? I didn't see any thing else that could be changed. I get the 14 setting. Thanks, p.

Edit: I have the answer, I found my old copy of "Bollinger on Bollinger Bands" One thing he consistently says is that if one increases or decreases the default setting of 20 then one should adjust the deviation setting too. For instance a setting of 10 would require a deviation of 1.9 per his analysis so the question now is, "What deviation would he suggest for 14 - 1.95 maybe?" But if the thread author has used his 14,2,2 successfully I would not be one to challenge his settings. Good trading all.
  • #13
  • Feb 11, 2013 9:25am Feb 11, 2013 9:25am
Quoting piprac
Anyone: Sorry for the questions from an old guy but I assume the 2 & 2 refers to shift and deviation, correct? I didn't see any thing else that could be changed. I get the 14 setting. Thanks, p.

Edit: I have the answer, I found my old copy of "Bollinger on Bollinger Bands" One thing he consistently says is that if one increases or decreases the default setting of 20 then one should adjust the deviation setting too. For instance a setting of 10 would require a deviation of 1.9 per his analysis so the question now is, "What deviation would...
i have made very decent gains monthly for past few years. onyly when the bands are too narrow my system will not be profitable.
charts are.redundant.
what are important are
only trade within these two hours
don't trade when any market has holiday
  • #14
  • Feb 11, 2013 10:05am Feb 11, 2013 10:05am
Thanks david 11............... actually backtested this system with a data of 6months and still backtesting but really it appears to be accurate and profitable, thou not much pips like you said. Will love to have more from your as the regards the system. thanks
The End Justifies The Means
  • #15
  • Feb 11, 2013 10:37am Feb 11, 2013 10:37am
Thanks for the comments. I looked last evening during that 2 hr time period but didn't see anything plus there were holidays that directly impacted the 2 hour period. I might also test the 1 - 2 hour period before the NY open, say 5am to 7am eastern time/u.s. Just a test, not trying to alter your good strategy as your time period is a good one for me.
  • #16
  • Feb 11, 2013 4:57pm Feb 11, 2013 4:57pm
David 11 - do you ignore the middleline (the ma), trade in its direction or just go long or short from the outer bands?
  • #17
  • Feb 12, 2013 5:54am Feb 12, 2013 5:54am
Quoting hanncy
Thanks david 11............... actually backtested this system with a data of 6months and still backtesting but really it appears to be accurate and profitable, thou not much pips like you said. Will love to have more from your as the regards the system. thanks
if eurusd go up beyond 1.35 the profit will be great and below 1.30, as what happened most of last year , profit will be depressed just like rate.
  • #18
  • Feb 12, 2013 6:39am Feb 12, 2013 6:39am
Thanks for the tip david.............By the way i want to ask, is there any other way you filter your signals from the BB like atimes price just break this BB resistance or support and keep going in that direction...............?? pls how do you filter such signals.
Quoting david11
if eurusd go up beyond 1.35 the profit will be great and below 1.30, as what happened most of last year , profit will be depressed just like rate.
The End Justifies The Means
  • #19
  • Feb 13, 2013 9:20am Feb 13, 2013 9:20am
Quoting hanncy
Thanks for the tip david.............By the way i want to ask, is there any other way you filter your signals from the BB like atimes price just break this BB resistance or support and keep going in that direction...............?? pls how do you filter such signals.
if it happens, exit at the end of the 2 hour trading period or earlier.
  • #20
  • Edited 9:32am Feb 13, 2013 9:21am | Edited 9:32am
Quoting piprac
David 11 - do you ignore the middleline (the ma), trade in its direction or just go long or short from the outer bands?
ignore the middle line. the rationale of my system is important to decide ur entry n exit. don't go beyond the 2 hour period.
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