Scalping - boon or bane?

Yo-Yo Ma - Bach, Cello Suites

Bach - Cello Suite No.1 i-Prelude

Valentina Lisitsa plays Liszt's Hungarian Rhapsody No. 2

Liszt Chasse-neige Transcedental Etude #12 Valentina Lisitsa

#399
Swiss-Scalping-B - (x4) - Leverage 1:50, Deposits: +300.-$ (Beginnig Date: 2014 August 15); actual: 362.43$, +20.8% - since 2014 August 15

...when scalping you should be reflect, how well you cope with the effects of worry & stress.
FXcube

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sporting activity could prevent

Blessing, if it is done correctly. Curse, if done incorrectly.



A Possible Solution

Scalping is a Timer's domain. If you miss the boarding call, each second that elapses afterwards reduces the probability of reaching your target, wherever that target may be. Scalpers tend to fail in this area the most. They never accounted for the importance of Timing. Every trade one makes always has four components: Timing, Direction, Magnitude and Probability. No matter what form of trading one might do, these four (4) elements will never become irrelevant for the non-spread Trader.

The scalper, more than any other Trader in the world, must enter at the point were the Magnitude of a particular time frame is just beginning. This allows for the greatest degree of risk mitigation possible. Combine Timing with Magnitude and risk is reduced even further. Direction has to be handled in one of two ways. Either through Hedging the Scalp, or through trust in a superior Directional Bias Indicator that has strong historical and empirical significance attached to its output. Hedging makes Scalping too easy and that's one of the main reasons why the FIFO Rule was created in the U.S. for Retail FX accounts. If you are a serious minded and dedicated Scalper and you are under the FIFO Rule, then a multi-account set-up under the same platform will net the same results as having no FIFO Rule applied.

Scalpers must develop solid Timing Triggers based on the Magnitude of the time frame (bar of data) they are scalping. The other method is simply attempting to scalp the trend on corrections. This works - right up to the point where the trends stops trending. At which point the Scalper typically gives back their profits minus additional losses for not exiting the trade sooner where there was a trend reversal in progress. Of course, the trend trader does not know the trend is reversing until it has reversed. Too late. Game over. Drop another quarter and try again.

This is why I do not favor scalping the trend for long-term gains, unless you have mastered a way to properly identify WHEN the trend is about the Transform. Thus, you are back to Timing the bar of data to initiate your trade precisely when that bar initiates its own expansion - which places your trade right at the start of that bar's Magnitude. This is the safest place to initiate a scalp but there are other hide-outs for the Scalper to consider as the launching point for their trade.

Scalpers, more than any other Trader on the planet, need to be fully aware of what the market is doing in all relevant time frames above that which is being scalped. Scalpers tend to make the mistake of believing that the larger time frames don't impact their trades. Nothing could be further from the truth. Those higher time frames help to provide the risk mitigation and security against unannounced market spikes that Retail Forex is so well known for. Thus, scalping with tight stops is unwise. The Scalper must Become The Stop. Scalping is an intense form of trading requiring uninterrupted focus, dedication and commitment to sticking to your rules.

Scalping is NOT necessarily high frequency trading. Retail Forex Traders cannot engage in HFT. They do not have the facilities, technology or trade execution platforms to engage in such warfare. Therefore, the Scalper must develop the patience of a Sniper - because that's what you really are. It take time, patience, skill and a lot of discipline (emotional stability) to become and effective Scalper. Just like the Sniper needs a good rifle as their tool for sniping, the Scalper needs a good visual reference for scalping. The trading panel that I have created is a multi-purpose trading tool. I can scalp with it or execute intermediate range signaled trades with it.


How I Scalp

http://i58.tinypic.com/2mhd8aq.jpg
(Not for sale at any price. Please don't ask.)

The key to scalping is having "eyes on" each relevant time frame and real-time feedback on what's taking places with respect to the Timing, Direction, Magnitude and Probability, of any potential trade that may emerge. You don't have to go to this extreme. However, such extremes are very helpful to the Scalper. You want quick and instantaneous visual referencing on every dimension of the trade before you enter or exit any position. You need to be able to see At-a-Glance the differentials in historical performance of each time frame, so that you can know where to attack the market. With good visual referencing, you can set-up a Sniper's position with cover and take shots at the market with relative ease.

I can toggle a value on the back-end of this panel inside its engine and switch the panels output into Scalping Mode, which then turns it from a Predictive Panel into a Momentum Panel used for Scalping. The two horizontal bars at the bottom colored in Green (on the left side) and Red (on the right side) provides me with directional bias and a probability for the strength of that bias. So, I can look both sides of that bar and know instantly which direction I should be scalping and the directional strength supporting the scalp position.

I can then look at HS column and know precisely what direction to enter the position (Long or Short) and I can then trace down to the Time Frame most appropriate for the scalp and know precisely how many pips to expect and the probability that those pips are still remaining in the trade. All with a quick glance at the screen.

In the X60 Density Probability Sub-Panel area, I get instant information about whether or not I should "Hold" a scalp position gone bad and the probability that price will return to BE or better. Under the True Synergy Cluster, I get information about the seven (7) pairs within the Panel and their aggregate performance projection for up to four (4) hours into the future (in Momentum/Scalp mode).

If you are going to Scalp, take a good Tool with you into combat and be patient. Wait until you have a high percentage shot and then pull the trigger on the trade.

I was never here. I am a ghost. I just wanted to highlight a good thread topic.

Andrea Zani (1696-1757) - Concerti da chiesa op. 2 (1729)

#530


Hi iDoubleStoch,
I hope it's okay for you...

...as listed below:
(see p.1, #1)
___
Further comments: p.25, #481 - p.26, #518 (FXcube), p.27, #530 (iDoubleStoch)

Excellent statement!
Best wishes from Switzerland!
FXcube

What do you think about this System for us Session On majors.

I want trade at 1min and 5min for confirmation.

http://forex-strategies-revealed.com...bands-scalping

firs for day..48/38 ..9 clear 5 min asx200

asx 200 4 hr looks hard down.. am short again at 44.. 15/30/1 hr decision made

closed at 29 ..14 clear.. reason.. 20 ema and resistance line..4 hr chart.. will watch for possible setup below this point..or above.. picture 15 min.. 22 clear for morning.. will just about do me till nite.. come back and have a go at D30

short again

That's it another 5 clear I go now..15 min OZZZ 200 u beauty

#533

Hi arlucad!
...this concept should be favored in ranging market.
I would put in an ADX additively. If so you could make much more profit.

...and why would you incorporate two indis which deliver the same information?
RSI 8 (horizontal lines on 30 & 70)
Full Stochastics 14,3,3 (horizontal lines on 20 & 80)
...one seems absolutely enough either RSI or Full Stochastic...in keeping with the motto: create the charts "as simple as possible..."
Hope it helps!
Kindest regards!
FXcube

Mahamrityunjaya Mantra (Hinduism) Mantra singer Hein Braat & Medicine Buddha's Mantra (Buddhism)