NO.
The work Michal Kreslik and I did on statistical price action was NOT based on random entries.
I just did the random entries to PROVE the point that you can draw a HORIZONTAL LINE ANYWHERE on the chart and make money if you trade with the H1 candle color.
You cannot mathematically prove something that is merely based on probability, but your point is taken. 
I take it that you are suggesting that random entries on a candle have a greater probability of success if you are trading in accordance with the colour.
(assuming the ajudication of a higher time frame).
Do you have any probability results on your work on statistical price action with Michal Kreslik?
The reason I ask is to see if the probability of success is much greater than that of failure.
If the success probability is great then you have something because the risk factor is small and hence the risk/reward ratio is more consistantly in your favour.
If the success probablilty is marginal, however, then it is an entirely different matter.
Correct me if I am wrong, but backtesting would not seem to work as the candles are historical data and tick data is unavailable.
I saw that too, where ever there is a top wick on a red candle or bottom wick on a green candle means at some point that candle was going the other way.
I like the idea of something that simple. Are there any additional studies on that theory? I ask because I too am worried about the reverse. I’m trading on 5 min. charts and just today (on the USD/JPY) I was in atrde, going with the red candle (selling), it reversed on me and went like 20 pips. I freaked out and exitied for a big loss, then it DID go the way I thought. If your theory is correct, I’ll be able to stay in when that happens and win more often…When you are wrong, how soon do you exit?
Maybe TRO will have an answer.
Tymen, I suggest you stick with CANDLESTICKS. You don’t seem to understand.
STATISTICS DEAL WITH HISTORY.
PROBABILITY DEALS WITH THE FUTURE.
They are closely related but you must understand the difference.
The work Michal Kreslik and I did was based on statistics. We used TICK DATA.
Tymen, PLEASE, stop challenging me in this pubic forum. I told you in the other thread, I don’t have to prove anything, to anyone. Besides, there are people who are profitable for the first time and others who are making the most pips they have ever made because they read my thread.
NEVER LOSE AGAIN!! That’s all the proof that’s necessary.
THERE IS NO RIGHT/WRONG IN TRADING.
ONLY PROFITABLE/UNPROFITABLE.
Unless you post a chart showing me what you are talking about, I can’t comment on your trade.
If you are FREAKING OUT while trading, then perhaps you need a TRADING PLAN, so you can execute your exits WITHOUT emotion.
I think you’re wrong. He do understand. But he will answer.
STATISTICS DEAL WITH HISTORY.
PROBABILITY DEALS WITH THE FUTURE.
Wow, is that something one should find useful for ?
What is the thing/word/sentence from those 2 lines one can use. Never mind, no need to answer.
Tymen, PLEASE, stop challenging me in this pubic forum. I told you in the other thread, I don’t have to prove anything, to anyone. Besides, there are people who are profitable for the first time and others who are making the most pips they have ever made because they read my thread.
NEVER LOSE AGAIN!! That’s all the proof that’s necessary.
Yes tymen, please stop that. Don"t you SEE you don’t SEE anything and it is only a thread for those who SEE something ? You are disturbing all those with mouth opened full of … SEE…stop that ! Come on !
This guy, TRO, is looking 3D while you are 2D, don’t you understand ? How can you dare asking a precise question on kind of revolutionary stuff ! Who are you to such affront ? Pffff tymen, go dance with the indigenous and let the chosen people SEE.
It’s OK to ask questions, IF YOUR INTENTION IS TO LEARN.
But, SOME PEOPLE set out to disprove the method or discredit the poster. All that does is DERAIL THE THREAD. And these people NEVER read ALL THE POSTS, they just stop by, read a post or 2 and then make comments like they are some ALL KNOWING BEING. What is really going is that they feel THREATENED. They may lose their status as being “THE MAN”. So they do whatever they can to keep people from learning the material.
How could it be that some people had they best trading week ever after reading my posts? How could it be that SOMEONE ELSE took the random numbers, placed them on a DIFFERENT PAIR and was able to make profitable trades?
[B]IT IS BECAUSE THEY READ THE THREAD WITH THE INTENTION OF LEARNING[/B].
Statistics deal with history and have no bearing on the future.
Probability deals with the future. When you flip a coin, the probability it lands HEADS is always 50%.
Even if the statistics of the last 1,000 flips show the coin landed heads 60% of the time, the PROBABILITY of the next toss is 50% Heads, 50% Tails.
Does that make it clearer?
How do I use statistics in my trading?
I look at the average range of the H1 candle for the pair I am trading. I also look at the average range of the H1 candle for each hour. This gives me an idea of what the range may be. So once I enter the trade, I can gauge when the move might “run out of gas”.
The problem is not that people is not trying to learn. They were taught one way and to them until you prove them wrong the way you trade is utterly flawed. I didnt diverge into scalkping strategies to start the post. People learn though trial and error. Give people a guide of how to start in the right direction. I think of starting a poll of how many people improved when they understood and incorporated scalping into their trading plan. The old addage of looking at candle sticks is fading. I feel when people start to learn to take out guessing and the I hope this hammer goes up routine. There was alot of bashing from people who dont know anything about scalping they probably knew what the banks say scalping is. Learning and experimenting is the key to being succesful.
Not sure what your complaint is Rumpled One? 
I went thro my post #38 and #40 and all I did was ask some questions - to learn!! 
Intelligent ones though - questions to make people think.
I am not out to derail anything - I cannot do that, only the Babypips staff can.
I think that the idea of trading with only a horizontal line is a brilliant one!!
I totally agree that indicators are delayed data, I have always said that.
I saw a post that made me think about some things. (it is not on this thread, I have searched).
This post (it must be on your “Never Lose Again” thread) was a table of trades with results using your strategy.
I observed that that there appeared to be no correlation between the colinearity of the timeframes and the profits.
I thought to myself - maybe the second timeframe is not even needed.
Then I saw many 5 pips profits but a few losses which were huge and did a lot of damage.
I thought to myself - maybe tough stop losses need to be introduced to stop these losses.
I also thought that the multiple lots approach would be a good idea to get a lot more pips than just 5 every time.
5 pips only is cheapening a strategy that, being so simple, must be a joy to use.
I would have thought that suggestions to improvements would be a good thing.
If I read correctly, no mention was made of stop loss or cutting losses until I came on the thread.
Not that the absence of mentioning these things is wrong, but is it really wrong for me to come in and ask some relevant questions??
If nobody else asks them, thats their problem.
Finally, I was always led to believe that good challenging questions only help to improve a strategy, never derail it.
Personally, I like challenging questions, they make me examine myself, to see if I am really on the right track.
I could say more but I think this is enough for now.
Its not wrong to ask questions or make comments even if they are unconstructive. Anything that can hold water can withstand negative critisism. Stop losses were not mentioned because a stop loss is based upon someones own judgement in risk. You want to slowly make money you will have fairly tight stop losses, too tight and you wont make any money. Going for getting rich you might not use a stop loss and hope for a bounce back. There is a balance/art. Chosing a SL is dependant on you leverage, lot size, pip range, spread, time frame, etc. Its safe to say never more than 2%. Ask anyone who does weekly trades if they risk always just 20 pips. Stop losses, TP:SL ratio, analysts are not a huge factor when scalping. The basics of knowing what to look for is. A good scalper may not even use stop losses. Do I recommend it, No. Is it done without serious drawbacks, Yes but not for everyone. As ECN-Scalper is a scalper who snipes a trade. Fast moving trends, large lots, high leverage maybe twice a day. I do believe people are seeing scalping is favorable because the larger your TP is the more likely it is to turn on you.
Scalping is a sure lose strategy in the long run.
I used to be a broker, I have seen different kind of traders: position, scalpers, news, volatility. Scalpers are the one who win small and lose big.
Well when am I suppose to lose then because for 2 years its been working. I think your trying to encourage long term trading. Scalping is no different than Swing trading just on a different timeframe. And different TP goals. I see you never tried it. Just heard about it. I guess scalping is the bad boy your dada told you to stay away from.
Scalping does not work for most people, you are the exception.
No agrument, you are the king of scalping. If it works for you, carry on please. 
I’m so new at this that I almost feel embarrassed even getting into this argument…ALMOST…Here goes…Pablo has been a lot of help to me already, just through this forum and his replies to my other one. I’m learning to scalp for a living and I must agree that it is not for everyone either, BUT it IS for some of us. I was trying to swing trade with my practice account for a couple of days…HATED IT!!! I couldn’t concentrate on anything else, kept stressing and running to my computer. With scalping, I set certain “work hours” (2-3 hrs, 4 days a week) I am following the sample “so easy it’s rediculous” system which is presented in the Babypips school. The ONLY chagne that I made to it is using the 15 min. chart instead of the daily. I just strated using this system last week. I went away from it and lost $150.00 in 10 minutes, learned my lesson. since then I have STUCK to it and have not lost one dime. (I’ll show you my log if you don’t believe me) Yes, I do have to sit, sometimes bored, for hours at my computer. For example, yesterday in 3 hours I only made two trades, each with a duration of about 6 minutes. I came away from those two trades with $63.47 more in my practice account (a $2000.00 account, 50:1 leverage, traded 20,000 units with Oanda) Long story short…If you hate scalping so much, go to another forum and leave those of us who like it and are learning to do it alone!!! Thanks
By the way, a couple more things. My goal each day right now is to make $50.00 US. Yes, I do watch a lot of pips pass me by, but when i am patient and calm and let that happen, I DO NOT LOSE!!!. The way I plan to make a living at this is by increasing my daily earning goal each time I reach a particular account balance. For instance, when I’ve quadroupled my balance, I’ll double my daily earning goal…just requires patience and discipline. I also keep what I call a “loss cushion” which also grows with my account. Again, a lot of people may think my plan is dumb, but unless an experienced SCALPER advises otherwise…I’m sticking with it.
Im not a scalping king or anything like that. Scalping is not for everyone. Yes but to say its a losing strategy depends on the user and thier own trading plan. A strategy and trading plan are 2 different things. Swing trading is a strategy and the cowabunga system is a trading plan. I think we all can agree that a suspect trading plan wont be successful in the long haul.
I also would like to comment on scalping. I came into this with scalping in mind. Right now I’m going through The Rumpled One’s thread. I also have tried other trading styles and cannot stand to stay in a trade for long - especially overnite. I still am experimenting with candlestick trading too. But as for scalping - I’ve tried different scalping techniques that I’ve read here and on other forums and so far - by far - pablopluto’s way that he posted in another thread is working the best for me. EMA5, EMA10, SMA2. Wait for the cross and go which way the SMA points. I think it is imperative to do two things to succeed with this technique: Number one: You have to watch the chart constantly or you’ll miss the cross. Number two: Don’t be greedy - set a goal of how many pips you are going to take and stick with it. Mine is 8 pips after the spread. Don’t get sucked in by taking your set amount, getting out, watching the candle keep going your way and thinking “Next time, I’m staying in a little longer!” Once you start thinking like that and not sticking to your pip goal, you start losing - fast. And anyone who doesn’t think pablopluto’s set-up doesn’t work - put in the above numbers and back track it on a 5 minute chart for a week or so. Notice when the EMA’s cross and where the SMA points. How many times is it right? A lot. Thanks pablopluto.