Is there any scalping strategy which is simple AND effective? | Forex Factory

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Is there any scalping strategy which is simple AND effective?

  • #1
  • First Post: Aug 16, 2013 9:27am Aug 16, 2013 9:27am
It seems like most people trade on the 1-hour or day timeframe, but what do you guys thinking about scalping? It seems like most scalpers depend on "exploiting" sharp price movements for quick gains, often ignoring trends and instead focusing on market volatility. It would seem like many traders maybe ignore smaller periodicities as they are too volatile to consistently trade on. Do you think that scalping is viable, and if so, is there any strategy which has proven to be both simple and effective for you?
  • #2
  • Aug 16, 2013 1:38pm Aug 16, 2013 1:38pm
Quoting CindyXXXX
{quote} Yes
The brevity is alluring, can you elaborate please?
With each conspiracy, i add a new layer to my hat.
  • #3
  • Aug 16, 2013 2:09pm Aug 16, 2013 2:09pm
Quoting CindyXXXX
{quote} Fk no =)
So much for a discussion
  • #4
  • Aug 16, 2013 2:37pm Aug 16, 2013 2:37pm
there are many trading scalping strategies .If you follow moving average period 14 with timeframe 15 minutes you can make handsome amount of pis per day but always trade in the direction of trend never make any trade against the trend in this way you can win more then what you lose.best of luck in the forex market
  • #5
  • Aug 16, 2013 3:09pm Aug 16, 2013 3:09pm
Quoting smoothmove
It seems like most people trade on the 1-hour or day timeframe, but what do you guys thinking about scalping? It seems like most scalpers depend on "exploiting" sharp price movements for quick gains, often ignoring trends and instead focusing on market volatility. It would seem like many traders maybe ignore smaller periodicities as they are too volatile to consistently trade on. Do you think that scalping is viable, and if so, is there any strategy which has proven to be both simple and effective for you?
the risk reward from scalping really isn't worth it unless you can manage to have a 1 pip spread and use less than 10 pips of risk.

i guess you could try scalping with 10 pip stop loss but my scalps usually have a 3-6 pip of stop loss

professional scalpers usually use a stop loss of 1 or 2 pips, depending on their entry. their spread is also typically in the 0.5-0.8 range
Be hopeful in a winning position, and fearful in a losing position.
  • #6
  • Aug 16, 2013 3:15pm Aug 16, 2013 3:15pm
Heres one for you - use a 14 day simple Moving average
You could use it on the 15 minute or 5 minute TF - I use a 5 pip TP and a 20 pip SL - beware though - take the trades in the direction of the trend of the 1 hour charts
Do you know how to determine the trend?
  • #7
  • Aug 16, 2013 3:45pm Aug 16, 2013 3:45pm
This is a fascinating video of how William Greenspan day trades, or should that be day-traded as it's a very old video.

Inserted Video
With each conspiracy, i add a new layer to my hat.
  • #8
  • Aug 16, 2013 4:03pm Aug 16, 2013 4:03pm
Quoting CindyXXXX
{quote} Fk no =)
Than I will tell him, more exactly I will point to where other is telling:

http://www.forexfactory.com/showthre...52#post6396752

http://www.forexfactory.com/showthre...53#post3524553

http://www.forexfactory.com/showthre...99#post6415499

Now hope you got what needed
I want to buy PATIENCE
  • #9
  • Edited 5:16pm Aug 16, 2013 4:48pm | Edited 5:16pm
As I have searched between old and interesting posts I have re-read a few and got other interesting facts. About Socrates how he explained the key of the success and other how succeeded.

Now I stronger believe: that system is the best for you, which meets your personality. For that need to try a lot systems trade impulsive, passive, trend following, counter trend, whatever. If the system isn't meets your personality than you get frustrated and that will lead to break trading for short or longer term. Can lead to massive loss too.

About leverage:
If is to low: than it will be worse result, than giving to a bank for 1 year ( +8 or +20% /year), which no reason to trade.
If is to high: - mathematically, in long terms you should risk win rate - lose rate at each trade. For a system of 60% win 40% lose the optimum is 20% and not 2%! - no more and no less.
- psychologically if you risk to much than the fear of loosing can be harder than fear from death! If you are stressed, can't sleep, than reduce the position size. If you can't sleep if you loose 2% than reduce to 0.1%.

I would suggest to risk the minimum of the mathematically optimum and the psychologically maximum. Min (20%, 0.1%) = 0.1%. Min (20% , 100%) = 20%.

Remember: every profitable system can turn on loo loosing one with leverage, that's why you need to ask, experiment the win rate of the system.
I want to buy PATIENCE
  • #10
  • Aug 16, 2013 5:19pm Aug 16, 2013 5:19pm
Quoting Feefee
Heres one for you - use a 14 day simple Moving average You could use it on the 15 minute or 5 minute TF - I use a 5 pip TP and a 20 pip SL - beware though - take the trades in the direction of the trend of the 1 hour charts Do you know how to determine the trend?
Sometimes I want me too to know
I would be multi billionaire, if I could know: it is a retracement or it is a trend change!
I want to buy PATIENCE
  • #11
  • Aug 19, 2013 12:13pm Aug 19, 2013 12:13pm
Thank you honestfx, Rags2RichesFX, and Feefee, that is the exact type of advice I was looking for. I will definitely have to test these strategies out.

matheszabi, some very interesting threads (especially the last two) and information, thank you for sharing.

Tin-Foil-Hat, I'm still not really sure what you're getting at, but I guess your username and signature match the content of your posts
  • #12
  • Aug 19, 2013 12:18pm Aug 19, 2013 12:18pm
Hi

You are welcome

The 15 min MA I use every single day and couldnt be happier
  • #13
  • Aug 19, 2013 4:43pm Aug 19, 2013 4:43pm
Locaate converged average price levels were during accumilation phase scalp both ways back to thre average this can last for hours keeep your stops behond the rrrange and enter on the tipping pooint you can see the tipping point from your qoute prices
  • #14
  • Aug 19, 2013 6:33pm Aug 19, 2013 6:33pm
Quoting smoothmove
It seems like most people trade on the 1-hour or day timeframe, but what do you guys thinking about scalping? It seems like most scalpers depend on "exploiting" sharp price movements for quick gains, often ignoring trends and instead focusing on market volatility. It would seem like many traders maybe ignore smaller periodicities as they are too volatile to consistently trade on. Do you think that scalping is viable, and if so, is there any strategy which has proven to be both simple and effective for you?
There are traders that successfully scalp on smaller timeframes (<5 minutes or less), but ironically it requires more time due to a more "hands on" approach whereas someone trading on a larger timeframe takes a quick look at their platform and makes adjustments then walks away. I personally feel scalping drastically elevates risk since it makes the trader more susceptible to unpredictable price fluctuations. Trading on smaller timeframes also brings spread into play more. In other words, the scalper incurs higher costs.
  • #15
  • Aug 20, 2013 5:05am Aug 20, 2013 5:05am
Quoting smoothmove
It seems like most people trade on the 1-hour or day timeframe, but what do you guys thinking about scalping? It seems like most scalpers depend on "exploiting" sharp price movements for quick gains, often ignoring trends and instead focusing on market volatility. It would seem like many traders maybe ignore smaller periodicities as they are too volatile to consistently trade on. Do you think that scalping is viable, and if so, is there any strategy which has proven to be both simple and effective for you?
Well, let's keep in mind that 'most people' don't make money in the markets to begin with. I've been trading for about 3 years and have spent thousands of hours watching charts. I wouldn't say there is a simple and effective strategy that you can just pick up and put to use, in my experience it's been about watching the markets so long that you truly get a feel of how it ticks, what a good set up looks like versus an average one.

If you want to scalp, as in look at 1 min charts and have very short trade durations, the only way your going to have success in doing so is through analysing Market Depth. Most FX brokers don't offer this unfortunately, but it really is a crucial component to scalping success. I actually have a friend who is a prop trader for futures contracts and the strategy they implement is somewhat a scalping strategy and its 80% about market depth/volume and only 20% charts.
  • #16
  • Aug 22, 2013 2:31am Aug 22, 2013 2:31am
There are many strategies , you need to test them how much they are effective for you .Choose best for you . I think your practice will tell you the right way to do trading in scalping method. choose best time of trading according to your targets and capital .
Master Forex ║ bonus up to 75% ║Minimum deposit $1 ║Swap free trading
  • #17
  • Last Post: Aug 22, 2013 9:14am Aug 22, 2013 9:14am
Quoting Trade2Day
{quote} There are traders that successfully scalp on smaller timeframes (<5 minutes or less), but ironically it requires more time due to a more "hands on" approach whereas someone trading on a larger timeframe takes a quick look at their platform and makes adjustments then walks away. I personally feel scalping drastically elevates risk since it makes the trader more susceptible to unpredictable price fluctuations. Trading on smaller timeframes also brings spread into play more. In other words, the scalper incurs higher costs.

I see what you're saying and this was my thought as well. Even though you can theoretically gain a lot of pips with scalping, it is more of a gamble than other trading strategies because of, as you put it, unpredictable price fluctuations. I have personally tried trading 1 minute charts in demo accounts, and while I do occasionally make a big win, this is usually countered with a heavy loss at some point. I suppose I had this in mind when I made the topic, but did not mention it specifically.

Are the 1 and 5 minute charts not viable? trendytradin suggests that the only 1 minute charts would only be worthwhile if you were able to analyze market depth. Have the rest of you found this to be true? I guess a supplemental question I have to the main question is, has anyone had consistent success trading (scalping) the 1 or 5 minute charts or are they just too volatile?
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