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Scalping - boon or bane?

  • #141
  • Aug 19, 2014 5:56am Aug 19, 2014 5:56am
Difference America Accounts -Europe Accounts
Hedging possible?
When my account is growing I partialize ever my scalping trades. I can do it in Europe (by brokers where Hedging is allowed) so I can go with the latest entry order at first out and has not to follow the rule: "1st in > 1st out". It's an advantage when having different brokers in different countries.
Kindest regards
FXcube
  • #142
  • Aug 19, 2014 5:58am Aug 19, 2014 5:58am
Quoting Forexcube
Entry & Exit the 2nd order Profit: +50 cents, (+0.16%) I hope you did understand the logic.
I understand it that way. Overlapping Candle H1 form "range".
First entry in 5m with CCI . First close with 1m CCI hook.
2nd Entry overlapping candle in 5m - entry at the low of the previous candle!? I'm not sure.
2nd exit again with CCi 1m.
Is this the right direction?
  • #143
  • Aug 19, 2014 5:59am Aug 19, 2014 5:59am
EURUSD, M15, 2014 August 19
The market seems to be in a consolidating phase before a bigger breakout should occur.
FXcube
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  • #144
  • Aug 19, 2014 6:15am Aug 19, 2014 6:15am
Quoting romu
{quote} I understand it that way. Overlapping Candle H1 form "range". First entry in 5m with CCI . First close with 1m CCI hook. 2nd Entry overlapping candle in 5m - entry at the low of the previous candle!? I'm not sure. 2nd exit again with CCi 1m. Is this the right direction?

Hi romu.
You coud trade in in your own fashion. Of course try it out which fits best for you.
Don't get me wrong, but I'm not a friend of hard rules. I will give a lot of examples in life trading here & there more.
I'm not so indicator friendly. If other traders will prefer the RSI, or MACD and/or, ..or, ..or it's abslutely equal.
I like the CCI. The CCI gives me the information what I need immediately, fast and the most reliable data in comparison with other indicators.
I'm also not a friend to spend hours of hours in explenation a "*strategy" or a "concept", due to the fact we have then reached these "hard rule" again.
I like to trade in a more flexible way and I like to give some excamples here so that interested traders could feel sympathy for with it.

You could also compare the H4 overlapping candles, but then it's more a swining trades.
The hook seems important for a lot of traders, I know it, but also this wasn't my intention here. I'm a friend who will go in the market as early as possible, with the risk certainly, that the market could run more against me. Look also at the candles alone, only the candles. They are telling you everything. Nobody needs really more information then only these naked candles. Indicators are more a help for me. They can give me one more orientation.
Please bear with me.
FXcube
  • #145
  • Aug 19, 2014 6:29am Aug 19, 2014 6:29am
Quoting Forexcube
{quote} Hi romu. You coud trade in in your own fashion. Of course try it out which fits best for you. Don't get me wrong, but I'm not a friend of hard rules. I will give a lot of examples in life trading here & there more. I'm not so indicator friendly. If other traders will prefer the RSI, or MACD and/or, ..or, ..or it's abslutely equal. I like the CCI. ...
Thanks for the explanation. I agree with you. Everyone has to find his own style. But always nice to learn something new.
Thx romu
  • #146
  • Aug 19, 2014 7:53am Aug 19, 2014 7:53am
EURUSD, M15, 2014 August 19

The ranging has coming to an end and here's the bigger price movement.
So don't overscalping these ranging markets.
FXcube
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  • #147
  • Aug 19, 2014 7:57am Aug 19, 2014 7:57am
EURUSD, M1, 2014 August 19
...& here are somne scalping examples (always life) with nerves of steel,
- not-recommended at beginner level.
FXcube
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  • #148
  • Aug 19, 2014 8:02am Aug 19, 2014 8:02am
Quoting romu
{quote} Thanks for the explanation. I agree with you. Everyone has to find his own style. But always nice to learn something new. Thx romu

Copy it and/or modify it and make more pips!
Every trader has his own trader personality, preferences, corpus rationale,.. and so on.
This is only how I like to mange some trades. No more, no less.
Kindest regards
FXcube
  • #149
  • Edited 4:07pm Aug 19, 2014 11:26am | Edited 4:07pm
Quoting Price
Thanks.... OK, One of my gameplans for scalping, and for any type of intraday trading, is what I call Multi-Pair Analysis. As you know Euro/Dollar times Dollar/Yen = Euro/Yen And GBP/USD * USD/JPY = GBP/JPY These pairs must always add up properly or there would be arbitrage opportunities in the larger market (not retail). In fact if you take a screenshot of the three prices and get out a calculator you would see that it always adds up to within the tolerance of the spread. So, what I do is look at the lower timeframe charts like 5 min +/- and with...

#97


Hi Price!
I will watching it & in conjunction with my overlapping candle concept.
Correlations aren't normally much valid & reliable at smaller time frames. I've favor it exclusively at swinging and long term trades since yet.
But I think it seems for practical doing some trades worth and also with higher risk, also for Hedging orders by scalping.
Could you deliver some experimental evidence?
Publish your charts at this board here, if you want.
Maybe we can develope further various concepts on your basics.
FXcube
  • #150
  • Aug 19, 2014 11:50am Aug 19, 2014 11:50am
Quoting Price
Thanks.... OK, One of my gameplans for scalping, and for any type of intraday trading, is what I call Multi-Pair Analysis. As you know Euro/Dollar times Dollar/Yen = Euro/Yen And GBP/USD * USD/JPY = GBP/JPY These pairs must always add up properly or there would be arbitrage opportunities in the larger market (not retail). In fact if you take a screenshot of the three prices and get out a calculator you would see that it always adds up to within the tolerance of the spread. So, what I do is look at the lower timeframe charts like 5 min +/- and with...

u might find this relative strenght indy interresting and might add it to your arsenal !?!..

to spot Strong Vs. Weak currencies.. and trade them against each other


http://www.forexfactory.com/showthread.php?t=163158

cheers
  • #151
  • Edited 4:14pm Aug 19, 2014 3:48pm | Edited 4:14pm
Quoting Forexcube
Scalping - Blessing or curse? ...........
FXC,

Re the wiki definitions (post #3):
"1. a legitimate method of arbitrage of small price gaps created by the bid-ask spread."
My understanding is that this is the traditional, and strictly correct, use of the term (obviously this kind of trading is not available to retail traders). However, over time, scalping has also come to mean
"3. a legitimate method of trading based on quick momentum trades triggered by order flow reading setups."
which I assume is what is being discussed in this thread.

Re the video in post #29:
Another example of the old adage: If you want to appear intelligent during an interview, sit yourself in front of a large bookcase full of academic books.
However, to be fair, I believe the presenter makes a lot of sense, especially when he says that a lot of intraday movement is "noise". The shorter time a trader is in the market, the smaller cross section of participants he encounters; longer allows for a greater amount of collective averaging to occur. (By way of analogy, if you flip a coin 10 times, the standard deviation of the resulting distribution is much greater than if you flip it (say) 500 times). Also, longer trends can have the backing of macroeconomic factors.

One thing the presenter doesn't mention: that the smaller the moves traded, the greater (relatively speaking) the spread becomes. For example, let's say the spread is 2 pips. If a scalper is trading 10 pip moves, then to accumulate 100 pips, he will need to place 10 trades, and incur 20 pips worth of spread. Whereas a swing trader who's trading 100 pip moves needs to trade only once, and incurs only 2 pips. Or put another way, the "house edge" against the scalper is 2 pips / 10 pips = 20%, while the house edge against the swing trader is 2 pips / 100 pips = 2%.

Is it possible to be a profitable scalper? Probably yes. But I expect that scalping requires significantly more skill and experience than longer term trading.

Why are new traders attracted to scalping? Perhaps it's because it's the lure of quick money, for less computer time. Perhaps it's because less trade time seems to involve less stress, i.e. get out quickly before anything too major can go wrong. Perhaps it's because the short term future seems easier to predict than the longer term. No doubt there are other reasons, also; after all, everybody is different.

Just my 2 pips,
David
  • #152
  • Aug 19, 2014 3:50pm Aug 19, 2014 3:50pm
Inserted Video

Forex Scalping Strategy
  • #153
  • Aug 19, 2014 4:02pm Aug 19, 2014 4:02pm
Quoting hanover
{quote} FXC, Re the wiki definitions (post #3): "1. a legitimate method of arbitrage of small price gaps created by the bid-ask spread." My understanding is that this is the traditional, and strictly correct, use of the term (obviously this kind of trading is not available to retail traders). However, over time, scalping has also come to mean "3. a legitimate method of trading based on quick momentum trades triggered by order flow reading setups." which I assume is what is being discussed in this thread. Re the video in post #29: If you want to...
#151

Hi Hanover!
Excellent statement. Congrats!
FXcube
  • #154
  • Aug 19, 2014 4:10pm Aug 19, 2014 4:10pm
Spread by scalping trades
When scalping the EURUSD par example you should not more have a spread from about 1.2 pips (on a low(er) budget account).
0.3-0.8pip spread without any extra costs is better.
FXcube
  • #155
  • Aug 19, 2014 4:37pm Aug 19, 2014 4:37pm
Inserted Video

Formation gratuite au Trading : 6 conseils pour devenir un Trader pro !
  • #156
  • Aug 19, 2014 5:07pm Aug 19, 2014 5:07pm
http://www.forexcrunch.com/3-indicat...n-be-too-much/

3 Indicators Can Be Too Much
If you're new here, you may want to subscribe to receive daily updates. Thanks for visiting!

Technical analysis has been with us for many years. It has developed significantly and today there is a huge variety to choose from. That’s great! But it doesn’t mean you should use them all at once. It could hurt your trading.
Not only has research advanced, but it has also become very accessible. Any charting provider, whether given for free or state of the art professional charts, have a vast amount of indicators available to the traders. You may think that by loading many of them, you’ll find the perfect confluence. You have better chances to produce modern art in your chart.
By using too many indicators, your messy chart won’t be useful. This is the case of “analysis paralysis“. Over analysis can hide obvious opportunities that you could spot if there weren’t so many lines on the chart.

http://forexcrunch.wpengine.netdna-c...8583911_XS.jpg

Worse yet, a messy chart can yield wrong decisions. The eagerness to see opportunities might make you believe that you see some opportunity when there’s nothing there.
There is no quick solution and no magic trick. It is up to every trader to develop his trading system, test it, apply it and stick to it.
A trading system just cannot be made using too many indicators. Using one indicator can be perfectly sufficient.
Using two indicators is more common and helps traders with verification.
Added a third indicator? At this spot, you are entering the confusion zone. If you can handle three without getting confused, continue to have full control, go for it.

More than 3? That can be too much…
Here are some indicators, and how you can use them with care:

  1. Support and resistance lines are important. Using Fibonacci? Great. But consider removing some of the lines after adding those Fibs.
  2. Oscillators can be very useful. One type is good enough.
  3. Moving averages crossing each other indicate a trend change. But also here, too many moving averages make your graph move in no direction.
  4. Using Elliott Wave Analysis? Nice. But mixing it with another method can be messy.

I think you get my point. How many indicators do you use?

  • #157
  • Aug 19, 2014 5:30pm Aug 19, 2014 5:30pm
Pip Value - Fractional Pip
Do you know what a "pip value" is or a "fractional pip" ?

If not, maybe look here:

Inserted Video

What is a pip?
  • #158
  • Aug 19, 2014 6:46pm Aug 19, 2014 6:46pm
this is 4 hr AUD 200 note diverges on CCI at OS point am short but using 15 and 30 mi chart..currently in blak 7 points temped to take
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  • #159
  • Aug 19, 2014 11:08pm Aug 19, 2014 11:08pm
Cube,

I am going to try a different approach on scalping if you do not mind, instead of scalping only the EU on 1m TF, I am going to try to scalp EU,GU and UJ on the 3m TF, I have a bit on work on it.....lets see how it goes live trading.
  • #160
  • Aug 20, 2014 3:19am Aug 20, 2014 3:19am
EURUSD, M1, 2014 August 20
EURUSD, M30, 2014 August 20
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