On the Internet, there seem to be a few sites warning against the
day trading and scalping. A few point out that there is no gain to
be made at all, especially with scalping. And broker love these
sort term traders they make more money on spread because of
high activity .
I intend to do more mid to long term trading but I thought I may
get better understanding of forex by doing short term trading on forex.
What do you think.
There is definitely an advantage to watching short term charts (no less than 5m). You get a better feel of themarket and can capitalize on short term volatility. Like you saod trading short term is much harder but you could just watch the charts instead and just get screen time without having to pull the trigger.
Remember, every higher TF (Time-Frame), candle or bar, started on the Tick-chart.
Therefore M1 is actually already a trade progressed. If you want to be early in a trade, M1 is the chart to start your trade.
Of course I am biased since this is the way I start my trades, from M1.
Very important on the M1 trading: Cut your loosing trade fast, 4~6pips against you (spread included), close the trade.
Needless to say you should only trade this with a tight spread broker, spread around 1~1.5 max pip, otherwise you have to overcome to much spread.
Winners: let them run and switch to higher TF. Before you know it this M1 trade turned into a 60~100+pip trade
Happy Trading
My favorite trading chart is the 5 minute chart.
I have made over 100 pips today solely from the 5 minute chart, the broker has made plenty of spread off me too but who cares as long as I make pips is all that matters.
I dont go as low as the 1 minute chart because the price bar length is too short.
Aside from that, this is also on the five minute chart.
They say it cant be done.
This is a 12 hour forward test I ran last night on a live trading chart of a scalping system I am implimenting into an EA using several different trade criteria at the same time. Test assumes a 2 pip spread. There is no stop loss implemented in this test. I would expect to use something like a 25 pip SL in live trading.
In these test results the different positions are independant of each other. Each position is closed by an opposite order, so you read the results like this:
position 1 buy — position 1 sell – position1 buy — position1 sell. etc
position 2buy — position 2 sell — position 2 buy — position 2 sell. etc
As you can see position 5 needs to get its act together or its out, I havent rechecked my code yet to make sure it was doing what I intended, I may have made a mistake in the trade criteria, it would have lost almost every trade.
This test made 183 pips in 12 hours from around 125 trades.
Without Position 5 to slow things down it would have been 367 pips.
I believe a system such as this could not be used with a US Broker due to the no hedging rule which as I understand it, does not allow opposite orders to be open at the same time, and the first in first out rule, would not allow for several trade criteria to run independantly of each other. This is the main reason I don’t use a US forex broker.
21:10:03 SDCbands3 Test EURUSD,M5: loaded successfully
21:10:03 SDCbands3 Test EURUSD,M5: Alert: New Test
21:10:03 SDCbands3 Test EURUSD,M5: initialized
21:10:04 BandsOpen EURUSD,M5: loaded successfully
21:10:04 BandsOpen EURUSD,M5: initialized
21:27:28 SDCbands3 Test EURUSD,M5: Alert: Ignoring First Buy Signal: 1.3578
21:15:16 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.358
21:25:22 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 4 at price: 1.3581
21:32:11 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 3 at Price: 1.3579
21:33:33 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 4 at Price: 1.3576
21:46:03 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 2 at Price: 1.3578
22:06:20 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 4 at price: 1.3583
22:45:13 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 1 at Price: 1.3588
22:45:13 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 2 at Price: 1.3588
22:45:13 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 3 at Price: 1.3588
22:53:38 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 1 at Price: 1.3586
23:01:15 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 3 at Price: 1.3586
23:17:12 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.3592
23:20:07 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.3589
23:25:25 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.3592
23:32:28 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 1 at Price: 1.3594
23:51:21 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.3587
00:04:07 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 1 at Price: 1.3587
00:25:32 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 2 at Price: 1.3587
00:25:32 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.3587
00:30:56 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 1 at Price: 1.3588
00:38:51 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 1 at Price: 1.3587
00:47:49 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.3584
00:57:49 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 1 at Price: 1.3584
00:57:49 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 2 at Price: 1.3584
00:57:49 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 3 at Price: 1.3584
01:01:30 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 1 at Price: 1.358
01:01:30 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 4 at Price: 1.3578
01:08:43 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 4 at price: 1.3583
01:12:08 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.3585
01:19:19 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 2 at Price: 1.3582
01:19:19 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 3 at Price: 1.3582
01:23:22 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 4 at Price: 1.3578
01:30:36 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 4 at price: 1.3585
01:37:46 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 4 at Price: 1.3579
01:40:01 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.3577
01:45:38 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 4 at price: 1.3585
01:46:09 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.3583
01:46:09 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 1 at Price: 1.3585
02:20:01 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.362
02:22:47 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 2 at Price: 1.3625
02:22:47 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 3 at Price: 1.3625
02:30:08 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.3633
02:34:18 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 1 at Price: 1.3623
02:34:18 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 2 at Price: 1.3623
02:34:18 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 3 at Price: 1.3623
02:40:00 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.3619
02:54:06 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 1 at Price: 1.3618
02:54:06 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 2 at Price: 1.3618
02:54:06 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 3 at Price: 1.3618
02:55:00 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.3618
03:21:05 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.3587
03:25:00 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.3596
03:35:01 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 1 at Price: 1.3595
03:35:01 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.3594
03:50:16 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 3 at Price: 1.3588
03:55:01 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 2 at Price: 1.3588
03:55:01 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.3588
03:56:08 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 1 at Price: 1.359
03:59:39 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 1 at Price: 1.3588
04:00:06 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.3587
04:16:54 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 4 at Price: 1.358
04:17:18 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 1 at Price: 1.36
04:17:18 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 2 at Price: 1.36
04:17:18 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 3 at Price: 1.36
04:17:18 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 4 at price: 1.36
04:19:09 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 1 at Price: 1.3591
04:19:09 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 4 at Price: 1.3591
04:24:07 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 4 at price: 1.3598
04:25:23 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.3602
04:26:43 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 2 at Price: 1.3593
04:26:43 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 3 at Price: 1.3593
04:28:03 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 4 at Price: 1.3592
04:39:33 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 1 at Price: 1.3597
04:39:33 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 2 at Price: 1.3597
04:39:33 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 4 at price: 1.3597
04:55:34 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.359
04:56:10 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 4 at Price: 1.359
05:01:47 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 3 at Price: 1.3603
05:01:47 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 4 at price: 1.3603
05:05:45 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 1 at Price: 1.3593
05:05:45 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 4 at Price: 1.3593
05:10:09 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.3597
05:10:09 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 2 at Price: 1.3596
05:10:09 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 3 at Price: 1.3596
05:13:06 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 4 at price: 1.3599
05:40:13 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.3607
05:51:25 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.3614
05:55:02 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.3611
06:15:42 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.3611
06:16:40 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 1 at Price: 1.3614
06:25:03 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.3603
06:30:05 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.361
07:00:31 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 1 at Price: 1.361
07:05:01 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.3606
07:42:23 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 1 at Price: 1.3631
07:42:23 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 2 at Price: 1.3631
07:42:23 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 3 at Price: 1.3631
07:43:21 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 1 at Price: 1.3626
08:02:30 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 4 at Price: 1.3594
08:15:08 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.3602
08:17:09 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 4 at price: 1.3604
08:18:06 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 2 at Price: 1.3596
08:18:06 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 3 at Price: 1.3596
08:20:17 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 4 at Price: 1.3596
08:25:01 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.3594
08:27:44 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 1 at Price: 1.3599
08:27:44 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 2 at Price: 1.3599
08:27:44 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 3 at Price: 1.3599
08:30:05 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.3597
08:45:07 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 4 at price: 1.3601
08:48:04 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 4 at Price: 1.3595
08:50:04 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.3594
09:00:02 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.3596
09:02:28 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 4 at price: 1.36
09:20:00 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.3603
09:30:01 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 4 at Price: 1.3595
09:31:01 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 4 at price: 1.3601
09:36:03 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 5 at Price: 1.3603
09:42:01 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 1 at Price: 1.3598
09:42:01 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 2 at Price: 1.3598
09:42:01 SDCbands3 Test EURUSD,M5: Alert: Open Buy Position 4 at Price: 1.3595
09:47:05 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 5 at price: 1.359
09:59:11 SDCbands3 Test EURUSD,M5: Alert: Open Sell Position 4 at price: 1.36
Position 1 10 pips
Position 2 145 pips
Position 3 148 pips
Position 4 64 pips
Position 5 -194 pips
Total 183 pips
SDC
unfortunately I don’t consider test trades and demo accounts as successful trades or traders.
On the other hand I know M1 and M5 charts are easy to trade and M1 is even easier then M5, once you found the system that “works” for you.
Some people need more time then others to find there “style”.
I only trade life.
I do like the 1 minute chart, but I’ve found it’s definitely got no go zones when using it.
The quiet Asian sessions are more often than not are a no go zone. When London kicks up, it works great.
I do pay attention to the longer time frames. My system needs a confluence of events to enter, even if my main chart is the minute. The more of those events that stack up in line, the longer I stay in the trade.
That is not a demo account that is my live trading account.
The test runs an EA which at the moment of the trade signal, instead of the OrderSend it writes the current price to the log file.
The only difference between these results, and allowing it to live trade would be if there was a requote. As the test was during a low volatility period this would be unlikely to affect the results.
My broker has a fixed spread of 2 pips EUR/USD so in calculating the profit/loss, 2 pips was removed from each profitable trade and 2 pips was added to the loss of each loss trade.
This kind of test is the only method of testing that gives accurate, simulated trading results.
I just wanted to show, it is entirely possible to make a lot of pips on short time frame charts.
Of course it’s entirely possible, but it’s definitely much harder.
Not really, instead of going to a place to work, I sit at home on the computer and trade. Sometimes 2hrs (if the trade is moving nicely in 1 direction right-away) sometimes 5~6hrs if the trades are choppy.
Around noon I am done when the trades where choppy.
We all are probably that much on the computer anyway therefore I don’t see the “hardship”.
The difference is, I know with my M1 trading (so far even on my worst day) my account is growing and not shrinking, that’s all that counts.
SDC: you used your “live account” as a demo account since you did not trust your EA and that’s where the problem will start.
The only system or EA that puts real money into a real account is a successful trade or a successful trader (your EA in your case) but you don’t trust it so you don’t let it go live.
BTW I would not trust a EA either and I don’t know anybody that has a real working EA he or she just let run 24/5.
And don’t tell me some members in here that are writing EA’s are successful with it and let them just run, I know they don’t. They watch em like a hawk and interfere whenever needed. So they just as well could trade manually (including the BB-DNA guys).
If there is a EA running 80~100% successfully we will never know since who ever has it is not sharing it.
I removed my original reply to your post because I cannot be bothered to get into another argument on this board.
I posted those results as proof of concept, take from it what you will, how you choose to see it does not concern me.
Scalping is a high intensity technical trading method which requires a highly skilled and efficient broker with high-tech tools. Anything less will diminish your profits, and increase your problems.
To find what day trading system works best for you, use paper trading until you completely understand what the rules are, where you should enter the trade, where you should exit the trade. Learn where to place the trailing stops to minimize loses.