Atheer's scalping method 1

would you mind to read post 26 again

what do you think about its correct?

If you mean that those are 2nd method trades no they are not
you need lines to spot type one candles
for bull candles we are spotting price coming back to lower thread of type 1 candle
for bear candles we are spotting price coming back to upper thread of type one candle
see last charts 179 and 178

ok thanks a lot

so here i have two examples
firts bad trade and second good trade

its correct ?

see you soon

Juan you are supposed to take sell trades based on red candles not green as in your 2nd trade
2nd trade green candle is not type 1 candle its type 3
if you suppose that its type 1 candle you have to take trades from lower thread not upper
same faults apply for the 1st trade

ok i understand

thanks for your time

i send you a Colombian Coffee !!!

2nd method is simple just try to digest type1 candles

thanks

Im with you... I don't get it.

What is the criteria for a "Type 1" candle? As previously stated (i don't mean to be negative here), all the screen shots just show cherry picked trades from the past. If you cant show live trades then perhaps at least use an indicator to show the trades taken? like the one in my pic. At the moment from what i see is it is just a guessing game with 50/50 probability.

So what is a "Type 1" candle? Before you say, i have read the thread and attachments. Although you talk about the candles you don't explain the criteria for them? Not trying to be negative.

As stated by someone, you say the method does not use indicators but it seems heavily reliant on BB indicator.

ok...lets see if I understood what a type 1 candle is.

As he said : "opening should be in between lines(not on them)"
I didnt see he shared already on #post66 the indicator with the lines.

And also: "for the bull one it should have a lower thread extending into other zones other than that of the open"
Wich I think it means the wick. So looking at his picture 180 on #post 106, I can see the lower wick come from another zone/line and the open is in between the lines.



And a more special type 1 candle would have: "its body should cross more than one line
its low/high is in the same zone of the close"
Wich can be found on Picture 169 at #post 53. The candles cross 3 lines and as its a bear special type 1 candle the lower wick is in the same zone of the close.

Hi

You can find it here

http://www.forexfactory.com/showthre...18#post8781418

Nice work Atheer1. You have obviously spent many months in study of M1 price action. For that, I thank you. And for sharing your experience, I thank you again.
Darryl

ops. I missed that. my bad. thanks !!!!!

Hi All,

I was interested in this method earlier today so I decided to write some code and test it on raw data from March 2016 for the EURUSD. I used the rules as outlined by Atheer1's scalping method 1 in the original post. I fooled with the settings in order to get 'optimum' stop loss / take profit levels. I couldn't get it to generate a profit for the month. These are the variables that can be tweaked in the code I put together.

Number of candles to look back (default = 5)
constant pair spread (default = 1 pip, best case for most on EU)
stop loss gap (default 5 pips). This is the arbitrary amount above the high (when entering short trade) or below the low (when entering long trade) point of the triggering candle that Atheer1 states to set stop above or below, respectively.
take profit gap (default 10 pips). This is the semi-arbitrary amount that Atheer1 has given as a potential take profit point. It would be easy to see where you 'should' call it a trade if you could see the future, but for testing purposes a value must be set.
trade size (default 1 standard lot) This comes into play with my next additional variable.
trade size multiplier (default 1) This is a multiple that you can optionally use which increases your trade size by its factor, only after a losing trade, like some kind of semi-martingale metric.

A lot of the situations I ran into were that I would get a triggering candle to enter short, and then, before a stop loss or take profit was triggered, another candle might come in that would trigger another short trade, and then before those two trades would hit a SL or TP, a candle would come in that should trigger a long entry. I ASSUMED that if you had a current short trade that was opened based on a previous valid candle and then you ran into a candle that triggered a long trade, the short trade would close and instantaneously a long trade would be entered. This is how I set it up. So there are three ways a trade can end.

1. Running into an opposite direction triggering candle.
2. Hitting a stop loss on the way.
3. Hitting a take profit on the way.

I used the first 25 full calendar days of March, 1M raw interbank data, and these are the results I got:

2,793 trades (yikes)
1,007 winning trades
1,785 losing trades

Trade Size = Constant 1 Standard Lot EUR/USD

Loss / Trade = $8.66
Total Loss = $24,194

Now, granted, with that number of trades the spread is going to destroy you, so I ran the same simulation with a 0.0 spread (I wish right!) and I will admit it generated a gain of $1,886 for the month, or about $0.68 profit per trade. A lot of work, and plus there is always a spread, or a commission, or something.

I would like to get some input on how I should tweak the parameters, or also possibly modify the code to zero in on more specific situations, instead of trying to trade every single qualifying candle.

Regards,
Eric

It's not that I'm doubting that this method can work, because I think it can and I find it interesting to try and take the method and back test it until I can get accurate profitable results. The next step I will work on will be to have another portion of code that is monitoring the instantaneous moving volatility (BB essentially) and put in some factor that can be tweaked to trim back the flat zones where money can be burned easy going back and forth.. Good work, I forgot to say earlier.

Thanks. Not sure i will trade with this method but good to find this Indi. Very helpful in ranging markets.

Green pips to you all!