Hybrid scalping system

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For sl i dont use any fixed number, unless there is clear resistance or support ahead. But 90% of time i use only system to tell me where to exit, and by system i mean signals either by PA, 10.2 TMA, Ichimoku or TMS, but TMS rarelly.
10.2 TMA overall is the best indicator to track your trade sl and tp durring the running trade. This means that with this you can adjust your possible exits very good just by observing this indicator, since for example if 10.2 TMA drops in power quickly against your dirrection of trade you should start looking for exit early. With PA all you need to look for is pinbar, a single pinbar or doji too is completly enough reason to exit trade. Ichimoku signals are rarely what i use for exit signals as my trades usually dont last that long to even recieve second Ichimoku signal, and if you are following this system on m1 and m5 charts i believe you shouldnt worry with Ichimoku as exit either. Fixed sl is only needed if you are trading higher tf charts, where you dont want disasters on account to happen, support and resistance is always what you should be looking for in that case.

Your entries are nice. Maybe 5 was too quick entry. I would defenetly not enter that one yet, on your timing you can notice that TMA did decrease in color but in value it was still increasing, TDI was not on cross either, and Ichimoku was in strong up trend.
Overall defenetly nice entries you have there keep it up, post more charts if you have free time for others to learn from.

What is the name of that last indicator you have attached? It looks like some sort of modified volume.

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Thanks Jan. I personally find taking profit is harder then taking a loss so hopefully I can do that better with some of your ideas.

Yeah with my 4th trade I actually set a limit order below the market so I got matched right at the bottom of that candle but it took a few minutes to get matched which was nice and yeah 5 in retrospect I should have held out a candle extra or 2 I think it went against me 4-5 pips then turned in my favor.

With the Volume indicator its just the standard MT4 one for Volume of Ticks its called ā€˜Volumesā€™. I use it as an indicator such as if you get high volume and you get pins and spinning top candles rather than continuation of price that is a good indicator that price will reverse (High Volume Rejection). Its called VSA (Volume spread analysis) but I defiantly donā€™t use it in the classic sense. I feel like if I use both volume and a few good indicators it will give me even more confluence to enter a trade. I was going to write about the volume in my previous post but I didnā€™t want to change the topic of your thread so I left it out.

No worries mate will post some more hopefully I get time to trade this week though thereā€™s a family wedding on so Iā€™m sure thats going to use alot of my time this week.

Cheers,
Tave

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okay, i thought scalping was not allowed. it rips off the broker, how do you get away with it?? too risky for me, but still good thread

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I trade with an ECN broker on E/U I literally get 0 pip spreads because they donā€™t take a cut of the spread at all and I just pay a small commission which is linked to how big my lot size it. Very cheap and they must love us scalpers because we pay more commission. Also ECN is matched straight in the market and the broker doesnā€™t take the other side of your trade like market makers do, only way to trade in my opinion.

Iā€™ve been scalping for 1.5 years outside of Forex making good profits its only risky if you donā€™t manage your risk correctly.

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Thanks Jan. I personally find taking profit is harder then taking a loss so hopefully I can do that better with some of your ideas.

Basically if you are scalping you are probably tracking all of your trades which means that only thing you need for tp are indicators as i said before. TMA and PA (pinbar, doji, engulfing) and Ichimoku breakout are three things to look for, but mainly using only TMA for expected profits is enough in most cases. It only matters where you entered. For example if you entered on bottom or tops, like clear ones with huge pinbars and TMA strongly in red or green, then you can expect swing trade until TMA enters in oposite swing, since most of the time TMA is ranging in oposite swings from ā€œ-100 to +100ā€. What i mean is set up by example here:

Numbers on chart determine shifts in TMA power or so called 0 areas. 90% of time TMA traves in those clean swings, but somethimes swings are interupted and another same swing begins after reaching 0 area. For example instead of swing from -100 to 0 and +100 it goes from -100 to 0 and again to -100. If you are in trade and the easiest way to preapare yourself what swing you should expect is simply by Ichimoku. Ichimoku will let you know if you should expect either bullish swing or bearish swing no matter what swing was before.

  1. and 5. are interupted swings. They both have identical conditions with clear Ichimoku trend and when entering on 0 area oposite TMA move would be against Ichimoku trend thats why it never happened. So if you would track TMA for take profit you and if you might be long before number 1. you know that you should put hopes on bullish TMA cross. Or if you would be short before entry 5. it goes the same.

All other marked numbers are perfect TMA swings, now 2. and 6. are also with Ichimoku trend but yet TMA swing was good, basically that is due that their position was after a long peroid of candles in Ichimoku trend, not on start on trend but after quite some time when you can expect reversal in trends.

But to keep it short you should mostly expect TMA traveling in swings, even if its interupted swing thats ok just when TMA reaches 0 pay attention to what is going on on TMA first two bars are usually the most important one that will tell you in which dirrection it will turn.

Once you are long enough in trade that TMA power went to 0 on cross this means in 90% cases that you should additionally expect more profits from trade.

okay, i thought scalping was not allowed. it rips off the broker, how do you get away with it?? too risky for me, but still good thread

Why would scalping not be allowed? Brokers earn much more commision from scalping than from long term trading.

I trade with an ECN broker on E/U I literally get 0 pip spreads because they donā€™t take a cut of the spread at all and I just pay a small commission which is linked to how big my lot size it. Very cheap and they must love us scalpers because we pay more commission. Also ECN is matched straight in the market and the broker doesnā€™t take the other side of your trade like market makers do, only way to trade in my opinion.

Really? You pay almost no spread? Now thats scalping heaven:D

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Yeah very much scalping heaven :smiley: hehe. IC Markets | Forex | Forex Trading | True ECN | Zero Spreads

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Tave so how exactly is your commision calculated? Like how much do you pay from 0.1 lot trade? This is really really tempting to join broker such as this, sadly i am not sure if its option now for me as i have just joined Zulu trade.

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Example of h4 trading with system, all long entries along with Ichimoku trend. Pretty clean and simple:

1.A Enter long.
Candle closed above kijun crossing it in bullish Ichimoku trend. TDI is aswell on bullish mode.
1.B Exit long.

2.A Enter long.
TMA is in bearish teritory, but take a notice that Ichimokus Kijun is still pointing sharply up showing that bullish trend is not yet over. Right on entry TMA power started to decrease from bearish slowly to bullish, pretty much the strongest bullish signal overall is clean TDI cross over very long peroid of candles. There is no PA signal for entry which is quite rare as price usually forms pinbar in such occasion but its still enough confirmation to enter.

2.B Exit long.

3.A Enter long.
This entry is pretty much the same to 2.A.
3.B Exit long.

4.A Enter long.
Clean TDI cross, Stocastic pointing upwards. If we enter in this one we should defenetly keep and eye on TMA slope what its doing when our trade is running, if it goes to 0 area we should consider exiting it, but you can notice that over next 3 candles TMA keeps steady bullish value.

4.B Exit long.

5.A Enter long.
PA formed pinbar before and strong bullish engulfing candle. Very clean TDI cross and Stocastic in OS area.

5.B Exit long.

6.A Enter long.
Strong decrease in TMA power, clean TDI cross and Stocastic in oversold area.
6.B Exit long.

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You do pay a small spread (tends to be under 0.5pips and its variable) plus The standard rate is $7 per 1 standard lot so you would pay 7cents per 0.01 or 70cents on 0.1 lot but if you do a google search for ic markets discount you can get it for $5.50 per lot or 0.1 55cents. If you cant find it let me know ill send you the link (donna forex forum).

So overall my price to get in a trade is usually under a pip. Actually E/J was the worst spread (0.5-1pip) iā€™ve seen but it didnt seem to be much of a disadvantage on Friday night.

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Here are Ichimoku entry examples for learning. This explains what Ichimoku signals are taken as valid and what not and also what signals are already late.

All entries listed bellow would be perfect Ichimoku breakouts and clean entries. Basically how you determine quallity of Ichimoku signal is visually based on those factors:
-distance between PA and kijun on breakout (the closest they are the better. If distance is huge it means signal is not valid)
-kijun angle before breakout and after breakout (best is if kijun is not flat and is in sharp angle before and after breakout)
-PA before and after breakout (this means what sort of candles. The best is if candles are small body candles without wicks and trend is slowly following Ichimoku breakout dirrection.)

Both entries bellow here are perfect breakouts where all above criteria is meet at best state.

Those two entries are even better breakouts, this is as good as Ichimoku signal entry could get. Besides all above meet criteria there is one additional powerful factor for entry: PA and kijun cross. So basically what happened is that on breakout there was also PA and kijun cross this is completly reliable entry.

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Here is no go entry. Kijun and PA on breakout are far apart, if we would enter here it would be entry straight on pinbar and trend reversal.

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Thought I might as well post my chart. These are potential trades I spotted and also some I took (red lines are potential setups). I only took 2 of these because I ran out of time tonight. I put little arrows on the trades I actually took. The first setup was particularly good if you held it to completion it would have netted 60 pips shame I wasnā€™t even home from work then hehe.

I was happy with my first short managed 10 pips and my buy managed to scalp 5 pips.

This chart is E/J 1 minute time frame.

EJ 22042013.jpg700Ɨ481 61.1 KB

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Nice entries, looks like you are entering TDI and TMA on extremes no matter how nice crosses are. Keep it up. Btw how many pips did you caught that day? Also did you use m5 for confirmation or strictly m1 for trading?

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Yeah I was trying to find trades where most things lined up, the short I took was a triple top in the resistance zone on 1 minute TF so I felt extra confident, stoc had come down but TDI and TMA still were still in the right area, volume looked good. The buy I wasnā€™t really happy with it but everything lined up really well, but I still managed to catch a quick spike in price so it worked out well.

So do you wait for the indicators lines to actually cross over? Iā€™ve been more focusing on the indicators position but yeah maybe I am not looking at it in the right way.

So yeah so far 32pips friday 15 pips today. Iā€™m pretty happy with this system in combo with my own method Iā€™m finding its giving me some really clear entries, extra confidence to enter the market.

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Tave yes i do almost always wait for cross to happen on TDI becouse you can always get bump of, this means that cross does not happen and TDI keeps sailing more into extremes along with trend. So the safest play is to wait for cross, but on other hand while i am trading on phone i rarely take crosses becouse i am using substitute for TDI and cant even see crosses well so i am mainly looking for extremes there like you.

Overall today a bit mixed day for me. I have started new account which i needed for zulu which was actually old MT4 account where i forgot EA turned on and it emidently spawned few entries on three pairs which all ended in -50 pips. Altrough i was still able to get on 0 with decent trading trough day and two positions still left open. PA today was not good bottoms on EJ failed few times on pinbars, even when TDI and TMA were in deep teritory, overall Ichimoku was the king of signals today.

I have been looking into some sort of indicator that provides alerts with Ichimoku signals so far i have found ichi360 v8 but not sure yet if it works well. Indicator with alerts for TDI crosses is useless becouse there are so many useless crosses spawned each day that it keeps beeping too much:D

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Hi Jan, where can I get the 10.2 slope indicator for MT4? Iā€™m eager to try your system.
Thanks, John

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Hello jweber all required indicators are attached on bottom of my main (first) post. Feel free to download them.

Well just wanted to mention that trading in friday for me was quite bad, it was defenetly one of those times when technical system fails. EJ keep breaking low, first i though 128.00 would hold considering all indicators showed bottom, then it kept droping even more. Hopefully i am going to be able to make up for losses next week. Meanwhile i have missed all entries on GU, i really need to get some decenet alert indicator either for ichi or TDI, if i get some i will post it here.

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Hey Jan,

Hope this weeks going better, sucks when you catch a few bad signals in a row. I didnā€™t get to trade the system yesterday but am back to trading tonight so anyway. I hope I can get in a few weeks of full 5 days starting from now.

I spent the weekend examining the charts since I had a lot of time in hotel rooms with not much to do.
So what I am doing is running two screens 5 minute/1 hour chart on one screen. 1 Minute chart on the other. Gives me a much better overview I think. Iā€™m looking at purely trading E/U, feeling a bit spoilt ICM put in some new servers on the weekend and Iā€™ve noticed the spread is going below 0 to -0.1, no idea how thatā€™s possible but apparently it is.

With the system iā€™ve decided that I am going to wait for the Stoc to cross and then wait for TDI, this seems highest probability.

Iā€™m finding TMA is very lagging in turning red or green so Iā€™m thinking its best to use it when its either looking to end its green or red session or get in before it turns red or green? Sorry if you mentioned how you use it before but do you only use it for exits or do you use it for entries as well?

Finally getting the hang on Ichi, I manually plot support and resistance zones on the chart myself I am finding its actually lining up with my channels so its just adding to the higher probability and great guides for the trade.

So tonight 5 trades, 1 loss, 3 wins, 1 scratch.
Just want to have a winge about this one, Had the best position and I got caught by the fake out took my stop on the tip of the candle, then went straight in my direction so I bought back in, -5 +10 pips = +5 :slight_smile:

In any case with the addition of the indicators with my VSA SR method iā€™m really getting high quality trades now so thanks heaps for sharing your system :).

Cheers,
Tave

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Hey Tave, its nice to see that you keep going on with system. In past few days i have been doing a LOT of testing and improving the system, actually preaparing system to be put into EA. I have discovered few really great things that should improve system quallity by at least 30%, overall i was doing trading in Forex tester software on old historical charts (live) with newer version of system and trades that ā€œwouldā€ be triggered by EA and results were very impressive, on a yearly basis over 10.000 pips on 5 pairs and pretty much less than 1 of 10th trades was a loosing one.

I will update all new stuff about system soon.

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Cool man looking forward to seeing what you come up with, iā€™ve made a few modifications myself.
What do you use for back testing? Iā€™ve been doing it manually its a bit time consumingā€¦