Jump to content

Scalping...is this a waste of time or can you....


Recommended Posts

  • Replies 177
  • Created
  • Last Reply

Top Posters In This Topic

. . . I am using MT4 ECN broker . . . .

P.s I think Maybe black line is ichimok.. not certain.

 

Hi ntynamoo, thanks for explanation.

 

To identify the black line, if you are using MT4, then you can point your cursor arrow on top of the black line, and usually it says something. For example, if it is Ichimoku, it may say something like "Ichimoku . . . Senkou Span".

 

Because when I try the full set of Ichimoku indicators on the M1 chart, I notice there are several potential "boundaries" to be used. They can be "Ichimoku ... Kijun Sen", "ichimoku . . . Tenkan Sen", etc. It would be good to narrow down to ID which one.

 

Also thanks to hermanhess for the suggestion of super trend too. I will also take a look at that one as a potential filter.

Link to comment
Share on other sites

Scalping I'd say can only really be learned with a lot of screen time. I think to be a good scalper you have to get to the stage where the trades happen intuitively. To use the analogy of driving a car... you don't need to think about all the actions to get from A-B... it's internalised... you just anticipate and react. Personally I only scalp on one currency pair for a period of time, don't use any lagging indicators... just go with the flow on the tick chart and base trades on a confluence of price patterns, momentum, and correlation in other pairs. You'll find some good info in the book 'No BS Day trading' by John Grady which is shared on here. The part where he describes the 'traders edge'... price moving in your favour immediately is really key. He's looking for precise entries where anything more than a -3 stop is simply being in the wrong trade. Small stops and getting the edge immediately is a really profitable way to trade in my experience.
Link to comment
Share on other sites

  • 1 month later...
To..Cubicrey

 

Well, I can't explain to hard... My english is poor. The trend --EX) When 30M chart MA20 is center, the price is under the 20ma, trend is down. you must ready sell limit 1M chart, when the price up 1m 20ma it will touch BB20 upper line, wait then it makes several candle box, then sell limit under 3pips . The price is going up, your oder is not process, But price is down you have position, then you can takes 2or3pips, I don't know how can i post the picture... when you trade 10times, you can take 7wins.. But you have a sell position, price is up you must close your position, you lose 2 or 3pips.. tha's my skill

 

I learnd this 1months ago from my forex teacher, He takes 50-100pips every day... I saw his real account. So I belive this and practice to winning trade..

 

http://i630.photobucket.com/albums/uu24/cubicrey/scalpingskill.jpg

 

http://i630.photobucket.com/albums/uu24/cubicrey/scalpingskill1.jpg

 

This is a very interesting methodology. Please keep us abreast of how things are going and if there are any other nuances you learn from your teacher. Thanks!

Link to comment
Share on other sites

This is my incomplete understanding of ntynamoo's strategy so far:

 

Using ntynamoo's first chart, for sell trades:

 

(1) If price is below 20 periods SMA on M30 chart, and also below the Ichimoku Kijun 104 line on M1 chart, your are to take only short trades.

 

[i am lazy, so to avoid opening up 2 separate charts of M30 and M1, I only open one M1 chart, but also add a 600 periods SMA to the M1 chart, this is the same as the 20 SMA on M30 chart]

 

 

(2) For short trades, on M1 chart, when price has touched the upper band of 20 periods Bollinger Band, and price has consolidated for a few candles in the area, place a pending sell order a few pips just below these congested group of candles (what ntynamoo drew on his chart and what he called the boxes), and let a drop in price trigger your sell trade. If price continues to move up, you pending order is not triggered. Just cancel, and look for next set-up.

 

(3) His suggested first target is around 3 pips or so.

 

So this is my interpretation so far. Unfortunately, I have not figured out the 2nd chart that ntynamoo showed us. Those expanding "envelopes" do not look like simply bollinger bands with bigger standard deviations. If someone knows what they are, it could be helpful.

 

ntynamoo or Diesel or anyone with better understanding, please help out.

Link to comment
Share on other sites

This is my incomplete understanding of ntynamoo's strategy so far:

 

Using ntynamoo's first chart, for sell trades:

 

(1) If price is below 20 periods SMA on M30 chart, and also below the Ichimoku Kijun 104 line on M1 chart, your are to take only short trades.

 

[i am lazy, so to avoid opening up 2 separate charts of M30 and M1, I only open one M1 chart, but also add a 600 periods SMA to the M1 chart, this is the same as the 20 SMA on M30 chart]

 

 

(2) For short trades, on M1 chart, when price has touched the upper band of 20 periods Bollinger Band, and price has consolidated for a few candles in the area, place a pending sell order a few pips just below these congested group of candles (what ntynamoo drew on his chart and what he called the boxes), and let a drop in price trigger your sell trade. If price continues to move up, you pending order is not triggered. Just cancel, and look for next set-up.

 

(3) His suggested first target is around 3 pips or so.

 

So this is my interpretation so far. Unfortunately, I have not figured out the 2nd chart that ntynamoo showed us. Those expanding "envelopes" do not look like simply bollinger bands with bigger standard deviations. If someone knows what they are, it could be helpful.

 

ntynamoo or Diesel or anyone with better understanding, please help out.

 

I agree with all you say except we should further clarify the exits. I believe his problems with english has confused. From what I can see, the entry is just below the consolidation on a stop. Then once you enter, if the position is not soon moving in your favor, close immediately for 1-3pip loss. If it is moving slowly in your favor, exit at 3pips. If it is moving swiftly/nicely in your favor you can go with it for 5-30 pips. Bytheway, when he says "limit" order, he really means a "stop" order to enter I believe...

Link to comment
Share on other sites

  • 4 weeks later...

From the information given.

 

Use the standard MT4 Ichimoku Kinko Hyo indicator, set in the parameters Kijun-Sen to 40, and in colours show none for all except Kijun-Sen set to black & thicken the line. Set the Bollinger bands as shown.

 

Method: trade break of KS line and set SL other side of BBands. Trade only in the direction of the main trend.

Link to comment
Share on other sites

With all the people against scalping...I need to tell that scalping is the easiest and fastest way to make money and it is easy...........the drawdown is minimal with 1-10 pips and it is better to get out of the trade in a few minutes than be in the trade and take a drawdown of 20-50 pips..........the longer you stay in the trade the risker...

 

i have been using scalping stategy for the last few months and did not have a losing trade so far....the maximum drawdown was 20 pips and the minimum was 1 pip...it just needs patience...let the trade coem to you...dont chase trades!!

Edited by dannydon786
Link to comment
Share on other sites

Hi Posterx,

 

What settings do u use for macd and adx??

 

Thanks.

Ok.The 10/21 crossover will give buy/sell signals. MACD should be crossing above/below 0 level. ADX should be rising above 20 for strong trend.

 

If you have missed the crossover signal, wait for a retrace to 10/21 EMA. Usually most powerful trends do retrace at least to the 10EMA. Then you enter.

 

The exit signal can be a break of the 21EMA or better, an opposite crossover.

 

I use this 10Min system in conjunction with a 1HR system to get the broader picture.

Link to comment
Share on other sites

. . .

i have been using scalping stategy for the last few months and did not have a losing trade so far....the maximum drawdown was 20 pips and the minimum was 1 pip...

 

Hi dannydon786, any specific scalping method or strategy that you use for your scalping trades? I think many scalpers or potential scalpers would be interested too.

Link to comment
Share on other sites

Hi Guys and Girls if any.

 

Really it just comes down to what works for you. Those who claim scalping doesn't work are simply stating what they are unable to achieve. They can't turn a profit through scalping so therefore scalping must not work.....While it maybe true that scalping does not work for the Traders that fit the above profile, it does not mean scalping doesn't work....There are traders out there that do have the capacity to scalp.

 

Scalp trading is one of the most challenging styles of trading to master. It requires unbelievable discipline and trading focus. When scalping WINNING IS CRITICAL!!! Unlike a number of day trading strategies where you can have a win/loss ration of less than 50% and still make money, scalp traders must have a high win/loss ratio. This is due to the fact that losing and winning trades are generally equal in size. The necessity of being right is the primary factor scalp trading is such a challenging method of making money in the market. Most of all scalping is time consuming. You have to spend hours in front of your PC glued to your charts trading all day to make your money.

 

So the question is not about whether scalping works? The question is why would you want to scalp in the first place.... I remember when I first started out in the game of Forex I was attracted to the idea of more free time, then I get into scalping and guess where the free time goes?....Down the time consuming toilet, thats where.

 

The point i am trying to make is... its not about what style works in general, its about what works for you! Trading as most are well aware is not as easy as first thought. It takes time and desire and a absolute s*** load of trial and error, the time it takes to become a consistent profitable trader by the book on average is around 4-5yrs.

 

The more time you invest in yourself the quicker the processes will be. There is much to learn along the path to becoming profitable but you must be willing to do the work....nothing worth achieving is easy and anything easy to achieve is not worth achieving. It won't be handed to you on a plater....You MUST be willing do the work......Your results are a result of the effort and work you have put in.....If you are not achieving the results you desire, then you need to put your head down and your a** up and work harder....If you feel like you have worked as hard as you can and have nothing else to to put in.....Give up!! This game is not for you.

 

Amen, my friend...

 

Ain't this the Truth!!

Link to comment
Share on other sites

Sure Vladv my friend ;)

 

Why not ... :)

 

This is one of examples :

 

 

Rules If CCI Break Level 50 we take BUY Position. If CCI break Level -50 we Sell; thats it. Keep It Simple Buddy ... :-bd

 

You can made an alternate exit strategy for maximum profit; example by Buy/Sell 2 Contracs, 1st you liquidate at 20 pips, & the rest SL you move to Breakevent & exit by using AWESOME OSCILATOR, or you can exit when CCI come back to 50 again (if you Buy) or -50 again (if you Sell), etc...

 

This is the pictures :

 

http://img87.imageshack.us/img87/474/80493719.png

 

In the Pictures Exit No.1 is by using AO, & Exit No.2 By Using CCI itself. Feel free use your discretionary ... =D>

 

Although this post is so long ago. Anyone did try this method?

 

Smile

Chankl78

Link to comment
Share on other sites

  • 3 weeks later...
Oh yes my friend it is

 

to my mind, scalping is the best way to feel the trading. i don't know how to describe... I mean that when u r sitting in front of your screen and looking for the chart m1 or m5 or even m15, u feels marker movements, u feels like u r the part of it. and every pip becomes as a little explosion inside u.

 

i don't know.. i'm really exited of scalping. i've never met anything better :))

Link to comment
Share on other sites

  • 2 weeks later...
  • 2 weeks later...

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




×
×
  • Create New...