Catchy thread title - it caught my eye.
1 - If you exit before your stop is hit then why have a stop?
2 - Wouldn’t the spread be more than 1 most of the time?
Let me see if I can shed some light before purple comes to it. I trade similarily to him now 
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Stop losses are worst case scenarios. If you know the move is not going your way, why lose more? A stop can also be used for catastrophic purposes, i.e power goes out, internet connection dies etc.
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Most pairs are above 1 pip however depending on broker you can get less for MAJOR pairs. Example: EUR/USD on Oanda is 0.9 pips fixed. If I’m not mistaken, MB Trading (ECN) is 0.8pips fixed.
I too trade this system and have done for months, i think you need to be clear that this is based on trading GBP/USD only, no other pair has the necessary movement to make this a long term possibility, couple that with the fact that not many brokers have a platform that offers instant execution and you are pretty much left with Oanda where the spread is 2-3 pips at the UK & US opens. I accept the 0.9 spread on the EUR/USD looks great but you would have to have van loads of patience and 50 black cats would have to cross your path every day to make this system work on that pair!
With the spread being 2-3 pips the essence of the entry for this system is based on correlation and momentum, you enter when the price is moving so you have a better chance of nullifying the spread before the movement stops.
Purple will no doubt explain in more detail.
PPF on Oanda
I open a “buy” window and a “sell” and keep them open. when I hit the buy or sell, it makes the trade, now to close you said just hit the “sell or buy” window and it will close the trade. Is this correct?
Also, since Oanda is taking the spread in pips, why is it important to raise the account to 50:1?
Thanks
Yes, sounds good to me, it’s a high leverage strategy, low pips high pip value, that’s why the leverage needs to be high.
It’s not that common to have a leverage setting, most brokers just allow you to put a maximum for their leverage, depending on their criteria.
No need to explain any further, it really is simple, don’t think too much about it, just do it until it comes right.
Yeah I know what you mean with the EU. I do still scalp it though, with the way I scalp/method I use, the 0.9 pip spread helps a ton. I look to take 0.1 - 3 pips of profit per trade and usually get 3 - 4 entries per day. Works for me and have only have a very slight few losers.
I tried the method PPF uses however due to my own time constraints and inability to sit and watch the bars too long, I’ve had to modify a scalp strat to work for me, however I have adopted the money management strat and it’s commendable.
What some people never realize is that you dont need 50 or 100 pips a day to make it. Even 5 pips a day with a high probabilty strategy is all you need.
Which scalp strat do you use?
It’s not so much a strat but more of looking at price action on low timeframes. I’m actually in the process of creating a thread for it, more for scalping discussion over strategy. I don’t want to take away from this thread being PPF’s strategy, might confuse others if they read for the Cat and Mouse system.
OK, looking forward to hearing more…
I posted up in the Newbie Section so feel free to check it out.
PPF, trading with correlations, have you considered longer term trades or short term has always worked for you?
interesting system, will check it out. cheers.
I’ve always learned that we should look to the higher TFs for reliable signals and I don’t disagree. But I am also confounded by the fact that a trader with a small account has only two options to eventually make trading a viable career: spend years slowly building his account the “right way” with proper MM and compounding – or by scalping the shorter TFs using higher lot sizes.
I’ve been looking at scalping strategies because the former option hasn’t worked out all that well and the latter is starting to look appealing. That’s one reason I’ve spent time and effort in this thread (and others). However, my broker’s spread for GU (3 pips) doesn’t give me much chance for using PPP’s strat.
Yeah it hold a lot of people back. I’m switching over to Oanda in the near future, and if things go well and the account grows I’ll be at an ECN. You simply cant scalp with spreads like those. Unless you’re scalping 15MIN charts, I guess the term scalp has come to be used all over the place.
In my view correlation only works effectively very short term.
If it doesn’t involve holding trades overnight, I’ve probably traded it, from all the indicators under the sun and some I created, to Elliot waves, fundamentals, EA’s, if you’ve heard of it I’ve traded it.
This strategy works, what a lot of people don’t get is how prescriptive and NON discretionary it is, but it is quite hard to get the hang of it, there are some that look at this and think OOhh great, that looks easy, but it took me months and months to perfect it, I still quite often practice on my simulator on Mondays rather than trading the first session of the week, it sort of eases me in!
It’s the end result that counts, you end up with a system that doesn’t get you stressed, doesn’t take a lot of time, and you do not have to do any analysis, and gives you one heck of a healthy return compared to most other strategies.
1.6 PIPS has been seen on the GBPUSD spread on Oanda!!!
Thanks PPF, that’s the problem I have:
To Get The Hang Of It 
Logic tells me it works, I guess my brain/eyes are the “Lagging Indicator”.
Be careful with this logical thinking, a moving average cross may well logically tell that a pair is moving in a certain direction, it doesn’t mean it will, same goes with this, it’s as much to do with your approach to it as it is to use it.
Sorry to tell you but another chart won’t help you one jot, however as I say if a picture speaks a thousand words a video speaks another thousand
‘a visual method’ ? mmmhh, I wonder what other kind there is, I shall close my eyes and give it a shot
Hi Purple,
i can’t find the video on the site. What should click on, please?