(binned per thread starter's request) Trading system replication

Always draw trendline from extremes, thats when you are early in entry.

I like this way of scalping alot, makes it easy to make money.. im not sure if my example below is right janpec?



Thanks for your work

janpec, could you make video with live trading and post here ? please, thanks.. its easy to show at the history chart...
i tried this strategy many times.. lot of fakes. please could you do that ?

that would be great, because I also have lot of fakes in the past

Ok so lets see how many pips could one make today shorting GBP after flash crash, trading with down trend using 5 sec chart for entry:





That is 170 pips just in 2 hours of trading in the morning. Just pointing out scalping is all about hanging around where oportunity is, and that is where the large liquidity is usually. When large event happens embrace it instead running away, if there is enough liquidity such as it was in todays case you can go even lower than M1, which is 5 second chart or tick chart. I didnt woke up early enough today to catch it but thats my usual pattern how i trade around news on currencies. Wait for large move (dont care which way) and then go to 5 sec and catch few trades within 1 hour.

The difference in the way i draw trendline from what many other traders would draw it, is following the latest changes in price structure and using that as priority which means that if there is clear disconect and change in lets say last two highs and lows from the trendline that you drawn before, you have to redraw the trendline so that it follows the last changes in structure the most, that is how you identify change in volatility. And if you have structure where you cant identify the extremes correctly that follow the trendline, just skip it and dont draw. Look for another oportunity. If you are in doubt no need to force it, look for another more clean structure.

Looking to long GU on zone (stopping volume) if there is 5 sec trendline setup in it. Otherwise just shorting on regular basis.

+45 pips in less than 30 seconds, was bit lucky there price moved that far before i set my TP on 15 pips heh.


Another scalp for 3 pips.


EDIT:
+7


+8 on this one. Just following strong up trend on setups.


By the way for those who are wondering i am using Oanda free 5 second chart but order is executed on MT4 of ICM. Another option is tick chart for MT4, but since its paid indicator i dont want to make any promotions here.


EDIT:
-4.

Quite like this idea and today is NFP, so great day for a bit of charting.

LuXing

Yeh ill be trading 5 sec around NFP, until the NYO then focus is on stocks.

Awesome thread janpec really like this way fo trading.
By the way theres a free indie for second charts do a search for flexiicharts 2.0 works a treat.
What pair you usually trade for NFP.

Cool thanks for info ill check it out. On news events when trading 5 second or tick you always trade the pair that has the lowest spread. So for example if there is CAD news ill check what is avarage spread on all 3 CAD pairs and trade the one that is keeping it the most tight which is usually USDCAD. For USD news usually EU will be my pick as it has default lowest spread, however if there is double combo like USD+CAD news and both are strong and oposite of each other for example strong bull USD but bear CAD it will create large volatility in USDCAD and thus ill trade that instead of EU becouse spread will tighten a lot and it will simply create more oportunity due to larger move which EU would have just from USD. So the pair chosen is in the end the one that moved the most and has the most solid spread. And there is no need to track more than 1 pair on news events, becouse generally everything its gona move the same since its going to be lead by the currency that is attached to move (eg GU EU AU are all gona go same direction on USD news most of time).

EDIT: Maybe i should add in case if it isnt clear, the reason for that is so that your actual profits on trade are in decent proportion to the spread that you pay, since the lower you go on TF the larger the trade cost (spread+commision) relative to TP and SL. General rule that i follow is that max cost i am willing to pay is 20% of my whole TP size. Thats why its important to have spread line visible on all crosspairs on FX and on all stocks to see where the bid and ask prices are. In stocks its important to track both bid and ask depending on position since as oposite of FX those can differ a lot to each other, for example bid is 1 cent away, while ask could be 5 cents.

150 tick chart.
Short entry on the blue line (trendline break & 150 tick candle close) would have been easily good for 10 pips.

LuXing

Same setup, on M1 TF.

LuXing

Alright done with NFP, 5 trades ,5 winners. I traded GU becouse the spread was fine and it had largest volatility from all USD pairs. So whats the take away? Its not the fact that i made 5 winners, becouse on long run i know statistically ill bump soon enough in loosing trade, its about trading the pattern, and that pattern is not just what you see on chart in terms of structure, but rather the news event itself. There is 99% statistical probability that NFP will make large move and change the flow of markets for next hour, so you use that information to increase the number of repetitions of entries by using as low TF chart as you can. Noone knows which way is the news gona push the market, thats what everyone focouses on and yet its the most irelevant part. The only important reliable part is that there will be change of volatility on larger scale. That way you can pre plan ahead exactly when will you trade, and have also good aproximation how many trades will you be able to put in within 1 hour, becouse there is historical data that gives with this system usually 3-6 trades within 1 hour and 30 minutes of large volatility event.




There were 3 additional entries, but i sticked with trend only, with exception of first trade.

Alright stocks now.

Yep good, i would enter on different one though, inside this whole structure there is this middle trendline already broken.

GBPUSD M1 long:

janpec after how many pips you set your position to Break even ?

Hey i only set BE SL if i am trading higher TF setup with M1 entry, where TP is very large, so usually thats less than 10% of trades. I set BE SL once the price traveled 2X the TP distance size of M1 structure. So if your TP is 5 pips, i would want price to go around 10 pips and then set BE SL.

Solid entry, well drawn trendlines.