Scalping For 100-200 Pips

[P1PTRAD3R]

Hello everyone, i am new to babypips.com. i do trade fulltime. i will start to post my trades in this forum with my specific money management and trading rules. I am a scalper, i trade GJ exclusively but i do take trades in EJ GU EU when trading oppurtunities set up in those pairs. I try to shoot for about 100-200 pips/day, especially where the VIX is nowadays. I do credit my success to discipline, money management and experience. I will start this monday on my trades. My trading system is basically my strict money management rules that i follow. I trade about half of my account size(personally), meaning if you have a $30,000 trading account you should be trading 30k units. I do scale into positions, with a max drawdown of 4-8% You will see more clearly what i am talking about when i start posting my charts.

P1PTRAD3R

[airbeat]

I look forward seeing your results. I'm just getting into scalping myself to see if its viable for me.

[pipnewb24]

wow, excited to see a trader who truly has a "pair" (pun intended) and trades with their entire account! I know what many say about proper money management, not risking too much than you can afford, and i only succumb to it if i've seen it 1000 times. this on the other hand is pleasing for me to see and would love to know more about. please do share your scalping techniques with their S/L and T/P margins, pairs, and possibly preffered trading times.. i await your results on monday! i hope for the best!

[ThePhoenix]

Originally Posted by pipnewb24

wow, excited to see a trader who truly has a "pair" (pun intended) and trades with their entire account! I know what many say about proper money management, not risking too much than you can afford, and i only succumb to it if i've seen it 1000 times. this on the other hand is pleasing for me to see and would love to know more about. please do share your scalping techniques with their S/L and T/P margins, pairs, and possibly preffered trading times.. i await your results on monday! i hope for the best!

I think you missed the part where his drawdown was only 7-10 %. He's just trading the size of his account. While 7-10% is a high drawdown, it would be way worse if he was trading a size larger than his account. For instance if he used all the leverage available to him and traded 300,000 on 30 k account 10:1, and hit a 10% loss just once, he would lose his whole account. Since he's only trading the size of his account 30k, the most he's going to lose is 3k.

The problem comes when you trade with a small account, use a large risk percentage and try to control full lots with a small account. The drawdown would be too much no matter how good of trader you are.

[P1PTRAD3R]

Glad i got some feedback already for this thread.

ThePhoenix is correct, i do not trade heavily, i trade quite small. I look to make more trades than most and i keep trading throughout the NY session. I trade off of heikin-ashi candles and trade with no indicators. They all lag. I am more of a tapereader than someone waiting for a signal to happen (waiting for MAs, Macd, stoch, etc all to line up perfectly), usually i am in the market before the signal would ever go off for most traders. You have to anticipate the future of the chart and act on it. If you wait for confirmation for each trade you will be nothing more than a break even trader. I am looking to make 1%/day. With my money management rules that means i should be making about 100 pips on average each day.

Looking forward for tomorrow to see everyones reaction and opinions on my trading style/system/strategy.

P1PTRAD3R

[ThePhoenix]

Originally Posted by P1PTRAD3R

Glad i got some feedback already for this thread.

ThePhoenix is correct, i do not trade heavily, i trade quite small. I look to make more trades than most and i keep trading throughout the NY session. I trade off of heikin-ashi candles and trade with no indicators. They all lag. I am more of a tapereader than someone waiting for a signal to happen (waiting for MAs, Macd, stoch, etc all to line up perfectly), usually i am in the market before the signal would ever go off for most traders. You have to anticipate the future of the chart and act on it. If you wait for confirmation for each trade you will be nothing more than a break even trader. I am looking to make 1%/day. With my money management rules that means i should be making about 100 pips on average each day.

Looking forward for tomorrow to see everyones reaction and opinions on my trading style/system/strategy.

P1PTRAD3R

I like candlesticks as an the most important indicator myself. What are heikin-ashi candles? How are the different from regular candlesticks?

[P1PTRAD3R]

ThePhoenix,

I prefer them over candlesticks. Been using them for over a year for my FX scalping, been having great results.

P1PTRAD3R

[pipnewb24]

Originally Posted by ThePhoenix

I think you missed the part where his drawdown was only 7-10 %. He's just trading the size of his account. While 7-10% is a high drawdown, it would be way worse if he was trading a size larger than his account. For instance if he used all the leverage available to him and traded 300,000 on 30 k account 10:1, and hit a 10% loss just once, he would lose his whole account. Since he's only trading the size of his account 30k, the most he's going to lose is 3k.

Pheonix thank you for the clarification... but rather unneccessary. I've read p1ptrader's post-- even the part about the 7-10% drawdown. I am only admiring the fact that he is opening a position the SIZE of his account and possibly bailing once he is in the red about 7-10 pips (which is typical when scalping).

P1PTRAD3R-- once again, still enthused about your results for tomorrow. Can you please let me know around what time (and time zone) you will be trading? As for a technical question, you mentioned a minimum 1% account gain objective through earning at least 100 pips. Does this mean that you will be trading with no leverage? Ex: $5,000 x 1 (leverage) = $5,000 (lot size) = $.50 pip value. So... 100 pips x $.50 = $50 = 1% of $5000.... correct?

which brings me to another question... if you are only looking to scalp and make several small pip gains (and hopefully smaller losses), why would you not use leverage and trade a smaller fraction of your account?

[EternalFxStudent]

P1PTRAD3R,

Since you are not using indicators, is it safe to say that your trading methodology requires some instincts that you have developed over time by watching price action and that this is not a method that a newbie would likely find a lot of success trying to emulate?

Regardless, I am excited to track this thread, I am sure that I will learn something regardless of your answer to my question.

[pipnewb24]

Originally Posted by ThePhoenix

For instance if he used all the leverage available to him and traded 300,000 on 30 k account 10:1, and hit a 10% loss just once, he would lose his whole account. Since he's only trading the size of his account 30k, the most he's going to lose is 3k.

One more thing Pheonix, you might need to revisit the school and learn more about using leverage because your numbers don't match up. When you say "used all the leverage available to him and traded 300,000 on 30 k account," if you mean 300k on top of maximum leverage (usually 100), then yes, the $30M position would have $3000/pip movement meaning that his account would dissappear after a 10 pip loss-- BUT thats not possible since all FOREX brokers require you to have a minimum of 1% (when using 100 leverage) of the FACE VALUE of all OPEN positions in your account balance. In layman's terms.. you need to have the amount (before leverage) in your account in order to trade it.

remember: FACE VALUE OF POSITION = MARGIN (subtracted from account) x LEVERAGE

If you meant trading 300k INCLUDING max leverage (100) that would mean a $3000 subtraction from his $30K account balance. this position would require a foolish 1000 pip tumble to clear his account.
300k position = $30/pip
$30 x 1000 pip loss = $30,000 loss (account value) ==> back to the drawing board!

hope that clears any confusion