Scalping on the 30 second and 1 minute charts
I am using Tymens count back line entry method to scalp on 30 second/1 minute charts. I use bollinger bands at 22/2. I like the CBL entry method alot as it is very accurate. Once I enter, the trade almost always goes into profit within seconds.
I like the smaller time frames as I get more entries. Your suppose to enter at the outer B.band in squeeze areas. Or when the B. bands start to contract. Sometimes I have made entries when the b. bands are expanding in a downward sausage or bubble. The candles will move up, it will touch the CBL and I will enter very quickly. It will go into profit briefly then come down again. If I stay away from these trades and just stick to the entry rules 100% then I am sure I will have a much higher success rate.
Also every night when I trade, I write down my account balance and then after each successful trade write down the new balance. This just helps me to keep track and also I would like to finish trading each night with a pip gain. So if i made 20 pips, then had a bad trade and lost 5, then I might leave it until the next night.
Endinding with a gain boosts my confidence as a trader, and prevents me from `revenge trading` which is not a good frame of mind to trade with.
Is anyone else using the CBL entry method? If your scalping, what adjustments have you made to increase your success rate? I have only been trading LIVE for a short time and have made some very basic newbie mistakes. Even though I have tymens trading plan right in front of me. I guess I had to learn from my own mistakes first. Now I know how important it is to stick to the plan. I am happy with any profitable trades and hope to become a consistant trader.
wow scalping the 30 second chart... how long do most of your trades last?
I wonder on the 30 second, if you did a 100 trades with a stop of 5 and take profit of 10, and just flipped a coin for buy or sell, what the win rate would be... I think I will try it out and post the numbers later this week.
Flip a coin? Excellent idea. Did I forget to mention I also trade whilst wearing a blindfold, and after consuming a whole bottle of whisky.
For me, I've found that exits are the harder part. Entries don't cause me too much pain -- its knowing the best time to take profit or cut losses. For scalping, the takeprofit is easy if you just have a pip-figure in mind. But knowing when to cut losses is the hardest decision in my opinion.
I'm still looking at your CBL idea (mostly as an indicator for when to STOP)... let me know if you find a way to make it work good!
Factoring in the spread of course, I think it'd be a cool idea. I'm gonna demo that too. :P
Originally Posted by MyForexLife
PS, blindfolding and the whiskey is all part of my trading plan too, lemme tell you, it sure takes the emotions out.
The random idea or coin flip has been done to death. here it is on a 1min chart the first pic 5 pip SL 10 pip TP the second is the other way. I think thats how it goes as you can see once the spread is factored in your not gonna get very far with a coin flip on a short time frame chart.
Shot at 2011-02-13
Shot at 2011-02-13
My point here is if the OP is having results any better then this then he is doing something right and I am sure that you could make money by trading such a short chart. It would be to much work for most people and I don't think its the best way to trade at all but what do I know.
"Real knowledge is to know the extent of one's ignorance."