Trading off of 5 minute charts

Set a daily pip goal, 10-20 pips, stop wnen you`re there!

The biggest downfall of scalping is over-trading. However, if you can find a good entry price with a tight stop and let your profits run, then your risk reward will be the bomb. Once you win, you should STOP. Like in a casino, you have to know how to quit while you�re ahead

Not to bgrag but i just had a lot of fun.


This sounds like an interesting way of investing, but I don’t know if I would have the guts to do it… maybe I need some more time to think about it. But nonetheless, congrats! It requires a special kind of investor to be on the trenches of daytrading!

Maybe I’m wrong but can you even put “Investing” and “daytrading” in the same sentence? :slight_smile: I never consider any FX trades that I make investing since I never hold them past Friday and most of the time there closed by 5pm. Just my opinion.

just proceed with the lower ema setup for scalping with one indicator setup , the indicator you need to analysis by your self which one suite for that currency . when you are familiar with the indicator setting then the scalping will be easier for you. and only refer to 1 min chart for scalping. For the bigger move u can refer to 5 min chart ( can profit up to 30 pips in few hr). depending on the movement and just enter or exit on 1 min chart.

I agree, scalping on the M5 chart can be highly profitable especially when the reward is worth the risk!

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I hate to be redundant.(I guess that’s not true) but I scalped last month only missing 4 days of trading. I had one losing day and the rest were profitable. I made 41% based on a $5,000 account. I’m sure there are more on this site that made much more than that.

Is your method mechanical or discretionary?

Leo you had a losing day must have been a Friday or Sunday

My losing day was August 8th. My plan is mechanical but since I have so many conditions and am not able to code it into tradestation I am forced to call it discretionary.


I could probably code it. Have coded over 200 if not 300 or more TradeStaton indicators. I am better at EasyLanguage than MT4;)

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Or eSignal.

By the way, I DO NOT CODE FOR MONEY!!

I will code it for FREE, if I think it is worth doing or I just want to understand it or if I want to see if it works…

I’m not sure how to even code my trading. I have written about 200 strategies but this one is so hard to reduce to a formula. For instance, I will trade gold off of the petroleum stocks report if there has been a sufficient run (measured by rsi) and has had a pullback. I look at the longer term charts and determine where the underfunded accounts have their stops and where those that have good profits would exit. If they coincide then I will place my order. I also use tick volume for a filter before placing trades.(in futures). I will use size of range in the forex as a pseudo-indicator for volume. That is only 1 example of many that give a set-up. Then the exits are variable depending on how the market reacts when it hits my entry price. I generally place a breakeven order in when only 50-100 ahead and if it doesn’t slide through the price with some volotility I’ll just take the pop. If it moves well initially I’ll trail it with pivot points and exit on a blowout in my direction for a good profit. I also use support/resistance levels intergrated with all this abiguity. I’m not even able to clearly define every entry, let alone code it. I just know out of 17 days traded I had one losing day of $200 and made $2050 that can be traded on a 5k account. I trade with the trend many times but prefer to trade a rejection of a continuation as that is usually a trap for inexperienced traders and a good profit point for the profitable ones. I have probably rambled on enough but as you see the plan is somewhat incoherent, but profitable.

Ok… piece by piece.

How do you do that?

I trade the 1 and 2 minute charts so “long term” in my case is 5,15, or 60 min charts. I think most trade the 5. I think the inexperienced are also the underfunded. I believe they will many times take a trade after they have realized they may have missed the move and are the “last hurrah” of the move. If there is a low volume break of the resistance and a pullback then I think they start sweating because they can’t afford to risk a lot and were hoping the breakout would be valid. Likewise, those who initiated early and rode it to the same resistance point are happy to lock in some profit. I place my entry where I think their stops are. (after a pause of a few bars I would sell new lows out of the consolidation). Then I exit as I basically outlined in the previous post.

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

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,

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I don’ understand the “5 day price” - was this 5EMA traded on the Weekly TF?

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

Day means DAILY. That would be D1 on MetaTrader.