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A scalping system for discussion

  • #21
  • Feb 13, 2013 9:26am Feb 13, 2013 9:26am
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
last year not so good as eurusd kind of depressed. risk averse.
every year before that is much better. 2013 shld be good. pls back test 2011 and give us ur feedback
  • #22
  • Feb 13, 2013 11:15am Feb 13, 2013 11:15am
Quoting david11
if it happens, exit at the end of the 2 hour trading period or earlier.
Oh david, is that to say you don't use stop loss...... pls expanciate much on how you handle your trade.. and by the way have you been trading this week... how is your result going ??
The End Justifies The Means
  • #23
  • Feb 19, 2013 12:35am Feb 19, 2013 12:35am
Hello fellow traders, whats happening in this forum there has been too much silence recently. David 11 sorry you haven't heard from me, I couldn't gt 2011 data for 5min chat, so it was impossible for me to backtest this system for 2011. By the way this system has a very high hit rate, but still it leaves some skepticism, as very high leverage has to be taken and at the end 60% of profit goes to the broker. I found that this system typical gives around 5 to 7 pips on EURUSD. With 5 pips been the most reasonable TP. Now how do we handle this when we have to pay a 3 pips spread already. David pls share more insight into this trading system as how you have been able to use it successfully for so long.
The End Justifies The Means
  • #24
  • Feb 19, 2013 2:49am Feb 19, 2013 2:49am
Quoting hanncy
Hello fellow traders, whats happening in this forum there has been too much silence recently. David 11 sorry you haven't heard from me, I couldn't gt 2011 data for 5min chat, so it was impossible for me to backtest this system for 2011. By the way this system has a very high hit rate, but still it leaves some skepticism, as very high leverage has to be taken and at the end 60% of profit goes to the broker. I found that this system typical gives around 5 to 7 pips on EURUSD. With 5 pips been the most reasonable TP. Now how do we handle this when...
IF are saying that you sometimes pay 3 pips of spread in the EUR/USD, its time you to change brooker, thats to high for a eur/usd spread.
  • #25
  • Feb 21, 2013 10:11am Feb 21, 2013 10:11am
Quoting hanncy
Hello fellow traders, whats happening in this forum there has been too much silence recently. David 11 sorry you haven't heard from me, I couldn't gt 2011 data for 5min chat, so it was impossible for me to backtest this system for 2011. By the way this system has a very high hit rate, but still it leaves some skepticism, as very high leverage has to be taken and at the end 60% of profit goes to the broker. I found that this system typical gives around 5 to 7 pips on EURUSD. With 5 pips been the most reasonable TP. Now how do we handle this when...
i am back and glad ur guys still interested.
spread normally 2 pips.
don't trade on Monday, post public holiday and etc.
in 2011, the band is wider and 7 to 9 pips average.
this year it ia better than last year i strongly believe.
can share with us ur backtesting gives how much return on capital?
  • #26
  • Feb 21, 2013 5:11pm Feb 21, 2013 5:11pm
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...
i can show you many days where there was no range rather change of trend with huge pip movements in those two hours. how do you handle such days ?
  • #27
  • Feb 22, 2013 12:28am Feb 22, 2013 12:28am
Quoting whatfx
i can show you many days where there was no range rather change of trend with huge pip movements in those two hours. how do you handle such days ?
hope u get the timezone right.
basically if US market last hour huge bull or bear movement, be cautious. better don't trade.
put a stop loss depends on ur risk appetite.
  • #28
  • Feb 22, 2013 12:33am Feb 22, 2013 12:33am
i hope to hear your feedbacks after you try to trade at least using a practice account.
no point talking without even trying.
it works as fundamentally the system contains certain degree of arbitrage. thats what i see. hope some of you see that. if u don't its ok.
  • #29
  • Feb 28, 2013 8:44am Feb 28, 2013 8:44am
hope someone out there actually dare to try a little. and most importantly speak up. otherwise i just.give up this thread.
  • #30
  • Feb 28, 2013 8:51am Feb 28, 2013 8:51am
Quoting david11
hope someone out there actually dare to try a little. and most importantly speak up. otherwise i just.give up this thread.
Have you tried this scalping? What is the result? I am interested to test with an EA.
  • #31
  • Feb 28, 2013 11:05am Feb 28, 2013 11:05am
Quoting ~bull.bear~
Have you tried this scalping? What is the result? I am interested to test with an EA.
Hi David,
Thanks for sharing your system.
I am fine tuning my own scalping strategy and will put yours to the test.
Reading through the thread, I will also try EJ in the same time span.
EJ may give a better return, depending on spread at that time of the day.
I have termed that time of the day as 'trading with the zombies',
and usually avoid it like the plague.
Hope your setup reveals a way to profit from it.
Cheers,
U2
Wait, or you will be slaughtered!
  • #32
  • Edited 8:27pm Feb 28, 2013 12:25pm | Edited 8:27pm
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'm a very pre-newbie so following my advice is at your own risk, here is the explanation for bolinger band the one came with every mt4 not in the custom indicator section:

I use bolinger band to calculate how far price have deviated from average. In statistic there is 3 major deviation which is deviation 1 = deviated 68,xx% from average, deviation 2 = deviated 98,xx% from average, deviation 3 = deviated 99,xx% from average. From that we know if price is playing around the border of deviation 1 means price already deviate 68,xx% from average (which is the middle of bolinger band).
For bolinger band setting period I think it's best if we use (for scalping) 60 on M1 or 12 on M5 which ever time frame comfortable with, why I chose those number?!? because 60 period on M1 mean it count 60 candle before = 1 hour period, 12 on M5 count 12 candle before = 1 hour period too. Bolinger band is best if used 2 deviation (deviation 1 and 2), so we know if price playing at border of deviation 2 it's already at 98,xx% deviated from the average and highly chance it it will bounced back, BUT this only apply when the bolinger band is flat the border not valid when the bolinger band is trending.

on the picture below I use 3 deviation:
http://img835.imageshack.us/img835/434/ej2102138x.gif

- on point B even price break down as long as the band is flat it 49% will bounced back (the 51% is God's will )
- watch out when bolinger band started to compress it means price ready to jump
- never ever use bolinger band deviation border in a trend because bolinger band not designed for dynamic data count (flat is static from my perception)

Thanks David for the info I never think about that time period, since flat market is what I'm searching for since every trend start from flat condition right
  • #33
  • Last Post: Mar 1, 2013 6:03am Mar 1, 2013 6:03am
Quoting Uturn2
Hi David,
Thanks for sharing your system.
I am fine tuning my own scalping strategy and will put yours to the test.
Reading through the thread, I will also try EJ in the same time span.
EJ may give a better return, depending on spread at that time of the day.
I have termed that time of the day as 'trading with the zombies',
and usually avoid it like the plague.
Hope your setup reveals a way to profit from it.
Cheers,
U2
i don't advise ej as japan pre open just after. hope to see ur feedback
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