I got to say how impressed I am at the progress you’ve made on your trading since you got back into doing it more often.
You really have a handle on the psychology.
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Caught an evening bounce of the yellow off the upper blue for a little win before bed. I don’t want to have a long-term trade on this pair even though the Daily chart shows lots of room for a long trade because I want to keep it available for scalping.
Its just so easy, so sometimes I can’t help myself.
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Is the strategy in the first post also a good one?
One thing I’ve noticed, on higher TF like the H1 for EURUSD, the EMA6 tends to bounce between the top and bottom cap channels quite regularly. I’m going to try and see if this is a viable strategy. Unfortunately for me scalping on a short TF doesn’t work due to the spread and my timezone. wish me luck!
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I did well with the original strategy. The problem with it was always trying to figure out where to close out the trade.
If you are on TradingView, there’s no Cap Channel. So maybe use another channel indicator? Donchian, Keltner, Envelopes, Etc.
If you have to work every day, using the daily chart or weekly chart can be easier. However, when I use them, I have a deep stop loss so that high impact news can’t make a spike that hits it.
3 for 3 this morning.
Using H1 charts for scalping lately.
EDIT******
Buyer’s volume was at 60 on D1 chart when I entered the first one.
Here’s how it works: If Buyer’s volume stays at 60, price is near equilibrium. If it goes to 61 or higher, price goes up. If it goes below 60, price retraces down.
But the overall trend is up.
So if the Buyer’s volume goes down below 60, but continues to go back above 60 every few minutes, you can enter the trade when it does and you know there is a very good probability you will go into profit.
4 for 4.
I may call it a day at this point.
Thank you American Trader for all your help!
So a few questions:
- what lot sizes do you trade typically to make $20 odd dollars per trade?
- do you only take trades off the H1 timeframe?
- do you look at the M15 for example to execute or not at all?
- lastly what pairs are you most successful with? Is there some way of refining the pairs you take trades on the day or do you like just trade a single pair always?
- any particular time of day that works better? I suppose this is obviously the NY session?
I really, really desperately need to make a $100 a day Sir, that’s why I was wondering about your lot sizes
Hi Deon.
When scalping, I trade 0.5 lots if I want $20 or more in typically under 5 minutes a trade.
Back when I typically scalped using 0.1 lots per trade, I noticed closing with $10 profit was best (unless using the channel crossover close targets).
Lately, I have been using the H1 most of the time. That is simply a personal preference based on how much time I have to trade. I still love the M5, but on the H1 I don’t have to look for targets to close on. I just decide when I am satisfied with the profit and I close out.
I do look at all timeframes because I also do long-term trades that last for several weeks sometimes. I am really liking looking at the H1 or D1 even if I’m scalping for 10 minutes because then I can see that a trade going against me still has a good chance of being profitable if I just give it enough time.
Best pairs to scalp with are the majors. Especially Eur/Usd, Eur/Jpy, Usd/ Jpy. They have the most volume and the lowest spreads. I can make a living just using 1 of these pairs and never looking at any others.
I like to trade when volume is highest, so yes. London or NY sessions. But if you are a night trader, Asian is nice because there are very few huge price moves. Its more like a fairly steady move in one direction or the other.
Today, you can see that since 1) I already met my goals for the month and 2) My head is foggy from having a cold - Scalping was just something to do for fun while I drink my coffee.
So I just took a few trades, closed when volume started to retrace a bit, and made sure I didn’t lose money.
**When I use 0.5 lots, it is not unusual to be down $40-$60 before going into profit. Having confidence to stick with these trades comes with experience and from looking at the D1 charts to see that the long-term trend is with you. I used to only trade in that direction to avoid losses.
Look at these little wins. Winning never gets old. Even little ones.
Today’s trade signals on M5 for European/USD.
Clear. Beautiful. Soooooo easy.
Yet so many traders struggling. Losing money. Losing sleep. Not knowing which “expert” to follow.
This is why I get joy from hearing traders going from failing to profitable. Because I suffered through the losing years like everyone else. We all hop on to every new promising strategy. We eventually chase the next one, and the next one.
We’re all the same.
But here, I think we have a strategy that allows for all timeframes. Gives many signals every day. Even if the market is simply ranging and people don’t think they can trade that day, there are signals.
These signals have a high probability of success. Over 80%.
In fact, those mastering the channel crossover should be finding months go by with no losing trades at all.
But still, there is room for additional pips. Lots of them!
It’s a counter trend with cost averaging system I’ve been considering.
The win rate goes down, but the profits go up. And, it provides additional signals on top of what the channel cross gives us.
It’s a more advanced strategy. So demo it for a while if you can. I will hopefully provide the screenshot with rules and examples by tomorrow.
Happy trading!
Info for Tradingview users:
My screenshot in the previous post is from my mobile mt4.
In place of the Cap Channel indicator, notice I used an Envelopes indicator. For M5 Euro/Usd charts it is set to 40 smoothed with 0.08 atr
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strong textHere is what I have so far for the Counter Trend addition to the Channel Cross Strategy:
When candles touch or go outside of Cap Channel, place trade in opposite direction. If candles keep touching Cap Channel or continue to be outside of Cap Channel, keep entering trades.
If you are selling. you let price go down past the first 25 (high) ema and down to the lower 25 (low) ema. You can close here or if you have gotten a Channel Cross signal, you can make another entry and let the trades continue on until a Channel Cross close signal occurs (200ema/Cap mid point/opposite Cap line).
Huge income potential once this strategy is mastered. Countertrend trading takes practice. Start on Demo until you are ready. You may find it takes 10-20 entries sometimes so plan lot size accordingly.
If anyone has a way to enhance the strategy, please feel free to post suggestions.
Happy trading!
Thanks For sharing
where do you place the stop loss?
Also, can it work without cap channel and taking profit only by 200 EMA?
Hi A1919.
Welcome to the forum!
Where you place the stop loss is up to you.
For newer traders, I suggest that on a buy entry you place the SL just below the lower 25ema or just outside the Cap Channel. Opposite for sell entries. You can even move the SL to break even or to lock in some profit when you can.
*If you choose to do the new Counter Trend - there is typically no stop loss. Although you certainly can add one if you like. There would be no specific place to put it other than protecting your own tolerance for any loss.
If you don’t have access to the Cap Channel, you can use another channel indicator. It won’t have the mid point line, but you can simulate the outer channel lines. As I posted above, on the Eur/Usd 5 minute chart, the Envelopes indicator set to Smoothed 40, with atr of 0.08 looks good.
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Adding pips to my scalping right now.
Still working with Eur/Jpy longs.
Turned out to be a nice trading day!
