SwingCalping system

[medisoft]

Hi! This is my first thread on Baby Pips

I decided to start my own thread because I'm using a system that is an hybrid between scalping and swing trading.

First, I have only 4 months of forex trading and I'm really a beginner on it. I have 2 years of stock trading experience, and tons of documents & books readed, including the Babypips school.

In the test here in Babypips, I resulted to be swing trader, but the "normal" swing timeframe is for me a little slow, so I started looking at scalping methods, specially the Steroid Scalp system from PipSiphon.

I found that thread very, very, very useful, and just started understanding the price action. Please, read that thread if you are interested on scalping.

I use the recomendations from PipSiphon on my own system, but I mixed them with swing techniques, candlesticks and the famous "GoldMiner" indicator.

I'm going to place here screen shots of my trades, so you can see the advance, give recomendations to me and use the information for yourself if you find it useful.

I'm a programmer, speciallized on PHP, and fanatic of automation, so the first thing I did when started on forex, is to learn MQL4 language. At this time, I programmed a group of Custom Indicators. One is to show the trades on the screen, I use bullets with number 1 to 10, indicating the size of the trade, and colors, green for long entry, red for short entry, blue for take profit and purple for stop loss.

I also made modifications to de MABasedZigZag to draw fibonacci retracements, fibonacci fans and pitchwork channels.

I also made two more, one to place on chart the Bollinger bands of various timeframes, all at the same time (with different colors), white is 5M, yellow 15M, red for 1H, green for 4H and blue for 1D.

The same sequence of colors is used for moving averages, I use ema34, ema50, ema100, sma150 and sma200 with those colors and timeframes, all placed on my basis chart (1 Minute)

I also draw manually fibonacci retracements and fibonacci fans if the automatic indicator does not place something useful (I mean, if I see the automatic fibos are too small then I place ones myself), I use light blue for manual placed indicators.

Also I use pivots, daily, weekly and monthly pivots, and S/R using fractals of 15 minutes.

Finaly I use two more indicators that I found on the codebase.mql4.com, jj_infobar and zcomfx dailytrend.

Oh, of course, I use the goldminer indicator! But I use confluent (remember this word please) goldminers from 1M to 1H.

I think this is a lot of information, but there is more: Price Action (15 M), Market Flow (4 H), Average Daily Range or ADR.

Because I consider this is too much information to be processed by hand, I also made an expert that checks all the information and resumes it on simple figures, automatically calculates lot sizes, do 6 types of trailing stops (normal, ATR, Average Candle Size, parabolic sar, last fractal, normal at bar close), and gives a very nice "one click" buy/sell, buy*2/sell*2, close/close half, invert all trades.

Also it does visual trading, and permits to drag & drop lines on the screen to move stop loss and take profits.

This helps me to worry only on click entry or exit of trades without worring me about lot sizes, reducing the time I need to think before I click.

I'm starting with very small equity, only 150 USD (after trading successfully with 10 USD for a month), with mini account, with min lot of 0.001 of normal lot, that's only 100 USD. The account's leverage is 500:1, but I use my absolute max risk of 2%, with min risk of 0.2%.

In next posts I will starting placing charts, and comments about what I feel is wrong to do and what is good to do

And remember! I consider myself a newbie, non expert, easy prey trader... at least for now.

[medisoft]

Well, in this week I had one very ugly day, and I found the cause: a lot of confluences in the wrong place.

For you that don't know what is confluence, think about something that reinforce a signal. Is like factors that contribute to increase probability of some event, like if someone is fat, with high collesterol levels, high blood pressure, very low excersicing, inherited heart disase, 78 years old and very stressful situation. All of that factors are confluent to cause a heart attack.

I found (thanks to PipSiphon) that the more confluences in your favor, the better. If you are trading a long position, you want to have a lot of confluences that prevents the price to drop (lot of support), and zero confluences in your direction (zero resistance), the inverse for short positions.

In the day I had that was ugly I had lot of confluences on both sides, so the price was bouncing with very short moves, and I wasn't enough experienced to be able to catch a good trade, and finished losing 5% of my account.

The other days I found that I had lot of confluences that favor my positions and I recovered the loss and generated some profit. Here is the first chart I'm going to place here.

EURUSDX-20119222145.jpg

[medisoft]

I just finished some trades, and wish to share with you. This one was a big one, with 80% o my max risk. If you see the chart, you will see that there is a lot of confluence on the top, and very low confluence below. First I entered in what I saw a possible bounce, it then went contrary my trade for a while, and also goldminer showed a contrary arrow, tempting me to click on close button, but I resisted it, and after some minutes, I closed half of the position with profit, and on the next bar the move was strong enough to hit the take profit.

If the price continues in this side of the confluences, this will be a good afteroon

EURUSDX-20119222352.jpg

[medisoft]

I found this trade insteresting. It was a "sure" trade, so I use the max lot size. Clicked on sell and.... a big move made my trade to fill at very bad price. After that I waited and see how the trade went contrary my target until the stop loss was hit.

After that trade I placed another max size trade that went successful and recoup some of the first one loss.

But this only shows how sometimes a good trade transforms in bad trade because fast moving market.

EURUSDX-2011923112.jpg

[medisoft]

This are some of the today's trades. I did a very big trade with 30 pips profit. I modified my expert adding buttons to change the profit:loss ratio to 2:1, 3:1 and 4:1 and changed the default profit:loss to 1:1. Also added a button to clean all manual inserted objects, to ease the operation.

I'm looking to do some trades at M5 timeframe, in addition to M1, I found that the combination of the two of them, using basically Fibonacci retracements and fans, manual and automatic ones, works wonderful to enter using swing and scalp techniques. If a trade seems to be very strong, and respecting fibonacci levels, then I can move the take profit.

I'm using the trailing method 6, on M1, with 3 pips trailing. This method moves the stop to 3 pips below of the most recent closed bar's low, only if the stop is locking profit, so once the stop is moved, the trade is zero-risk one


EURUSDX-M120119232110.jpg

[medisoft]

This image shows what I think was the worst part of my trading today... almost lose all the profit of the day.

In this screen you can see that after a big swing (with huge profit for a scalp method, 30 pips) there is a retracement, and after the retracement hits the 50% (and some nice profits from it), it started what seems to be a continuation of the trend, but the swing was not able to reach new highs and entered in a consolidation / range mode (big range mode if you want) of about 50 pips. It is enough to scalp, but I was in "swing mode" instead of the "scalp mode", and tryied to do swing trading there, and fnished with loses.

EURUSDX-M520119232359.jpg

[medisoft]

I think I discovered a Head & Shoulders pattern on EURUSD, this is the chart:

headandshoulders.jpg

What do you think about this pattern?

[medisoft]

Some trades of the day, using swincalping strategy and the head&shoulders pattern.

EURUSDX-M120119282247.jpg

[medisoft]

I'm back from lunch, and I want to share a new pattern, a triangle I found on M1 and M5 charts of EUR/USD

ejemplo-triangulo.jpg

[medisoft]

A small scalp from this triangle

EURUSDX-M12011929044.jpg