Trading off of 5 minute charts

[dobro]

Originally Posted by 4xfanatic

I've scalped on a 5 minute chart with just a 10 ema, buying above it and selling below it..that kind of thing.

Problem is I usually end up breaking even at the end of the day. I never know when to stop! My only concern is that when you win like 3-4 trades in a row, it’s hard to stop so if you can control yourself I think you should be in good shape.

I suspect there is more to the equation by your "...that kind of thing" - care to elaborate? I have always thought that scalping was the truest, purest style of trading price action; I'm just not very good at it but have never found a mechanical non-discretionary style. I think yours might be so if you will please elaborate. d

[TheRumpledOne]

Originally Posted by 4xfanatic

I've scalped on a 5 minute chart with just a 10 ema, buying above it and selling below it..that kind of thing.

Problem is I usually end up breaking even at the end of the day. I never know when to stop! My only concern is that when you win like 3-4 trades in a row, it’s hard to stop so if you can control yourself I think you should be in good shape.

When to stop?

WHEN YOU REACH YOUR GOAL!


EMA(10) works nice though I prefer the EMA(5) based on statistical studies.

FROM A FRIEND OF MINE...

Hello all.

Just some food for thought. One of the best books I've read - or
rather, perused is "The Encyclopedia of Technical Market Indicators"
by
Robert W. Colby. (Note this is a reference manual - pretty dry
reading,
but the knowledge is priceless). What he does is take about 80
indicators and backtest, then forward walk them through about 60
years
of data. He uses the Metastock program to do this, but the results
are
striking. He has a summary of the results in tabular format. He
compares the results to a "buy and hold strategy" over the same
timeframe (taxes and commissions, slippage, and stop losses were not
taken into account).

The number one profitable trading strategy was a 5 day exponential
moving average going long on the 5 day price crossing the EMA, and
selling short when the price retraces below the EMA. Altough this
strategy yielded about 60 trades per 62 trades/year (which might
qualify
you as a daytrader under the new NASD rules), it was a little less
than
767,000 times more profitable than a buy and hold strategy. Yep.
Which
if my math was correct equals about $822 million or so over the 60
year
period.

Surprisingly, an indicator like the bollinger bands actually lost
ground
to a buy and hold strategy by -35%. One reason is probably due to
how
Bollinger Bands are used. No shorting was used, first of all, and
buy
signals were only generated based on the lower bollinger band. And,
my
guess is that in most every major breakout the price is going to be
hitting the extremes of the bollinger bands, and run into the 3rd
standard deviaition throughout bold moves. The sell signals were set
at
the closing price +/- 2 standard deviations --- so in effect probably
much of the BIG increases over time were in fact missed.

There's about 60 or 70 indicators listed. I just picked two of them
to
share.....

Anyway - for what that is all worth, I figured I'd share my "book
review". It literally was an eyeopener. Plus the formulas are there
if
you want to copy them to a custom indicator. But, the results don't
lie. Take them in the context that they were used. Thanks,

FREE MT4 INDICATORS HERE

NEVER LOSE AGAIN!!

[dobro]

I don' understand the "5 day price" - was this 5EMA traded on the Weekly TF?

[TheRumpledOne]

Originally Posted by dobro

I don' understand the "5 day price" - was this 5EMA traded on the Weekly TF?

The number one profitable trading strategy was a 5 day exponential
moving average going long on the 5 day price crossing the EMA, and
selling short when the price retraces below the EMA.

Day means DAILY. That would be D1 on MetaTrader.

[TheRumpledOne]

Have to love those 5 minute scalps!

[dobro]

Originally Posted by TheRumpledOne

The number one profitable trading strategy was a 5 day exponential
moving average going long on the 5 day price crossing the EMA, and
selling short when the price retraces below the EMA.

Day means DAILY. That would be D1 on MetaTrader.

Thank you for the clarification. d

[mastergunner99]

I've been scalping off a 5 minute chart. Since I started keeping track of my stats here's what I have:

Wins - 24
Loses - 11
Win Rate - 68.57
Pips Won 240
Pips Lost 157

Now I'm just trying to figure out what's the best money management strategy. Right now I'm doing a 10TP 20SL. And please, if you're just going to reply based on the assumption that the current setting is a failure, don't. When you figure in winrate and size of position, you can come out ahead despite.

[atlefler]

I've been working with a system called the 4xrazor and it has been treating me well. It uses a minute and five minute chart and four indicators, the macd, rsi, stockastics and ADX. It's pretty simple and i'm in and out in less than a few minutes.

It's been working.

Is there anyone else that is trading that system?

A

[mastergunner99]

Originally Posted by atlefler

I've been working with a system called the 4xrazor and it has been treating me well. It uses a minute and five minute chart and four indicators, the macd, rsi, stockastics and ADX. It's pretty simple and i'm in and out in less than a few minutes.

It's been working.

Is there anyone else that is trading that system?

A

Lemme summarize for you.

"I'm selling a system for $99. Wanna buy it?"

[TheRumpledOne]

Originally Posted by mastergunner99

Lemme summarize for you.

"I'm selling a system for $99. Wanna buy it?"

Give the poster a chance to post the method/system/indicators BEFORE you make accusations.

So let's see the system.

Post a chart with explanation.