I usually dont think scalping is a great idea. Most of the methods I’ve tried or read about were just total garbadge.
I’m successful at longer term trend trading and swing now, but I do look over scalping methods just for something to do while I’m holding my trend trades for weeks or longer.
And the traders making a living off of scalping is pretty impressive, as the majority of traders who try to scalp end up wrecking.
This is the first method scalping method I’ve read about that seems to actually be viable, what with the strict cutting of losers and taking profit quickly.
So, as I understand it after reading the thread twice.
put up the 4 pairs mentioned with 1 5 minute candle showing? you are not worried about any sort of candle formations or any other indicators besides price?
Entrance: If price moves consecutively in one direction, instead jumping back and forth, then you enter? Which begs the question how many cosecutive pip/point gains in a row before you would enter?
Postive exit: As soon as you see 1 pip profit exit? The 1-5 pip profits are just deviation?
Negative exit: after you enter, if the spread isn’t covered and you get +1 within a few seconds just exit?
Is watching the other pairs to trade GU really needed? Couldn’t you just watch GU for consecutive pip movement, since you are basically trading price action and momentum?
What would be the minimum spread on GU to make this strategy viable?
A quick point about the simulator on the previous post - essentially what the simulator does is let you practice how to trade the moves one after another, rather than watching the charts for hours when nothing happens and you don’t learn anything.
In answer to the above.
Yes.
Thats’ where practice comes in.
You exit when the price stops moving.
Yes.
No, no chance.
Do you mean maximum spread? On OandA currently it varies, it has been a minimum of 1.9, I keep saying the spread is important, but not in itself, it’s the market movement/behaviour that is key, but larger spreads do tend to indicate a more jumpy market.
You are right there were times when it became pretty hard and contemplated on perhaps trying another method or system. The thing that turned this system around for me, was to develop the ability to wait and to be happy with one or two pips after a long wait!!! This might sound stupid, but at first i did not know the full extend of the meaning of what it takes to wait. This system takes a lot of patience and trusting in the the maths. What also became very apparent to me is trading personality!! This certainly is not a strategy that fits every personality. As I mentioned in the past, this system was in fact my entry into this market or any market for that matter. If I have to look back upon my journey I would certainly not have been able to get this below the belt if i had previously been trading another system or another way. I am not saying this can’t be done, but I think its a very big challenge. Mastering this system takes time and lots of it in my case, but if you can do it properly, you will make a lot of money.
In regards to your question on my other strategy.The ratio between positive and negative trade are not as good. I would say about 65% are positive with bigger positives than negative trades and I calculate my money management according to every trade. I am in the market for longer ( 5 to 15 mins at a time) This sort of trading I find a lot more enjoyable and satisfactionery I also find that i trade with a lot less anxiety and are able to execute trade with a lot less emotion attached when there are clear entry and exit signals to follow instead of discretion. I would say my personality suits my second strat better than the first one.
I still do trade FTW methods at London opening but strictly stop at 8:30 and i will only trade when there is something worth while. If i could give you a bit of advise. From where I am sitting it does seem like you are pretty fed up as you can not seem to get this right. TAKE A BREAK!!! Rest you mind and take a logical decision whether this system is in line with you or not. Because the more you allow it to mess you up the more messed up you will get
Very good post Namibia, I couldn’t have put it better myself.
I would though like to point out, that I think what Namibia trades is slightly different to what I trade and so I think the entry method is a bit different, but nevertheless the approach is the same, and what he says is very true.
As far as psychology/personality is concerned, it gives me another chance to bang on about how to deal with the psychology aspects using NLP/tapping and it keeps falling on deaf ears, THIS IS A TECHNIQUE TO NEGATE EMOTION WHEN TRADING, it works, and don’t just read about it and think about it, just do it - IT WORKS. And not just for this strategy, for any strategy, get tapping and trading.
Thank you for very informative reply… i wholly agree re personality . On my own admission i am an anxious person most of the time anyway ,even outwith forex. I work on this much more than looking for entries ,holy grail systems etc.
I aim to stick it out and have indeed taken a break from it. I am pleased to hear there may be other ways to trade that may fit my personality more and hope one day i may pick your brains a little further. thank you for taking the time to reply and happy trading
No i have not abandoned the course i trade it every morning, try and stick with it because the longer you give it the more chance you have of succeeding but i have to say that Sid and the course were almost useless to me as this is a self-teaching method and even the parameters he gives are hard to decipher. I’m not attacking him as a character but the course is a waste of time and money (drip feeding 30 individual ‘lessons’ over 30 days in the hope of duping you into thinking that you are getting value for money is quite frankly ridiculous and what you do get you could learn on this thread in an hour) needless to say this thread has been more enlightening.
I think baby pips in particular is a great place to learn. I really wish I have discovered it earlier. Along with the forum and blogs you can get the same answers and support you would from a mentor. I suppose when you are a newbie and look at forex for the first time one would naturally lean towards finding a trainer which offers a personal touch. Especially when one understands the risk involved. Knowledge is power!!!
yeah i agree-do you still follow his rules so to speak or have you adapted some of his teachings into a way that works for you?
apologize for the questions bit it is impossible to contact another blog members and i need some perspective on it as i am struggling with this course and have been for a while. i wrote to him recently and got a very arrogant reply back saying it works for many just change your mindset and get on the track-maybe it’s just me
In my opinion you need iron discipline and NEVER let a trade run against you i learned this to my financial cost, this is extremely difficult over the long run as the frustration is emormous that you feel when you enter with a 2-3 pip spread to get over and the move immediately stalls and falls back, in a matter of a couple of seconds you must close the trade and have just achieved a negative of around 4 pips, do this too often and it is very hard to stay on track - but somehow you must.
I still abide by all rules but practice on PPF’s simulator too which i think would help you with the biggest problem that we all face - entries.
I will answer you more fully on Monday if you wish but for now believe me when i tell you that i have had the ‘mindset, relax, concentration’ arrogant chat from Sid too, no constructive help has ever been forthcoming from him.
Try the simulator and look at the video’s from PPF too, very helpful.
Using the above, When #3 & #4 are green, Watch for #1 & #2 to go red, then watch for ( #1 ) to show consistant moves down and then sell ( #1 ) and when ( #1 ) ceases to show consistant moves down close trade.
QUESTION ? Would the reverse of this be a valid buy of #1?
So far I have been doing this for just more than a week. This stregady or method is not childs play, it is really tough.
From my point of view, you have to watch the charts like a hawk, and wait for the right momentum in the GU pair to move, as I have discovered that when GU moves, it moves, you just need to be in the right place and at the right time.
The beauty part about this is that no analizing charts and different timeframes. Nothing of trends and reversals you need to focus on.
The disadvantage is that you just need to wait and wait and you may not get a trade as well.
In my little time of experience and time i have tested this method it does work.
I’ve been really enjoying this thread, since the strategy is just so different.
I’m a newbie to the forex world, and after a month of intense reading I’ve more or less decided that EA’s and such are not the way to go for me, so I started digging into a lot of different manual systems…
When I came across this system however, because of it’s mechanical simplicity…I couldn’t resist thinking about the possibility of making an indicator which helps you detecting synchronicity and ‘unchoppy’ movement, perhaps using something like tick-based-EMA’s who would have to pass a threshold and line up to tell you when the move is right…
Anyway,
Since i’m fairly new to all this, maybe it’s not the best idea…
What do you guys think?
I have been watchlng a tick chart on the GBP/USD for the last hour using different EMA’s. You might be able to recongize a consistant move for entry and exit with concentration quicker than the indicator could tell you.
What indicators have you used so far? It is a good thought and if you come up with something please share.
No no no no!!! NO! - This is an indicator Free Zone - Wash your keyboards out with soap and water!
I’m keen for this thread NOT to go down the route of discussing indicators at all, the whole point of the strategy is to completely avoid indicators, they are pretty useless at the best of times, and as you can see from previous posts - It works, it works, it works, and if it ain’t broke why fix it???
Also, from some posts it appears that you’re making something from the colour of the candles, it does not matter what the colour of the candles are at all, it does not matter where the price is on the candle, you could trade this without candles even!
I thought colour of candles are important in this system, am I mistaken?
About the use of indicators, ppf, I think your opinion in this matter is very important, since you’re the guru of this thread and whole system a.f.a.i.k!
Forgive me for being a bit naughty here, i’d still like to ask you one thing.
Normally the major part of indicators are period based, i.e. whole bars…
I guess what I’m suggesting is that measuring stuff in between ticks wouldn’t be similar to this.
The idea in my former post about EMA’s would most likely suck, because EMA’s still lag, and the system is all about being fast. (thanks grab pips for having watched those!)
But how about measuring the difference in between ticks?
Perhaps telling you momentum stuff such as ‘at the current tick in GU, all other pairs have been moving in one direction for 2 consecutive ticks’…
I don’t know about that, I’m just someone who came up with something that works, and it even seems like some have got there before me, in a very similar way anyway, and it’s also becoming apparent that there are people that do this better than I, and also people that will be able to do better than I’m doing.
So thank you very much, but guru is too strong a word.
I may have been too harsh on indicators actually, but please not here.
I do get your idea with the indicator, but think along the lines of support and resistance rather than MA’s, but please can we let that be the end of that, I really don’t want to confuse the thread with this, so I shall place the following notice.
[B]NO INDICATORS, NOTHING, NEVER, NOWHERE - NO INDICATORS[/B]
You seem to be sending confusing messages here but reading between the lines are you saying that you are none too keen on indicators?? Can we compromise and just have one for luck?
