I suspect there is more to the equation by your “…that kind of thing” - care to elaborate? I have always thought that scalping was the truest, purest style of trading price action; I’m just not very good at it but have never found a mechanical non-discretionary style. I think yours might be so if you will please elaborate. d
When to stop?
WHEN YOU REACH YOUR GOAL!
EMA(10) works nice though I prefer the EMA(5) based on statistical studies.
FROM A FRIEND OF MINE…
Hello all.
Just some food for thought. One of the best books I’ve read - or
rather, perused is “The Encyclopedia of Technical Market Indicators”
by
Robert W. Colby. (Note this is a reference manual - pretty dry
reading,
but the knowledge is priceless). What he does is take about 80
indicators and backtest, then forward walk them through about 60
years
of data. He uses the Metastock program to do this, but the results
are
striking. He has a summary of the results in tabular format. He
compares the results to a “buy and hold strategy” over the same
timeframe (taxes and commissions, slippage, and stop losses were not
taken into account).The number one profitable trading strategy was a 5 day exponential
moving average going long on the 5 day price crossing the EMA, and
selling short when the price retraces below the EMA. Altough this
strategy yielded about 60 trades per 62 trades/year (which might
qualify
you as a daytrader under the new NASD rules), it was a little less
than
767,000 times more profitable than a buy and hold strategy. Yep.
Which
if my math was correct equals about $822 million or so over the 60
year
period.Surprisingly, an indicator like the bollinger bands actually lost
ground
to a buy and hold strategy by -35%. One reason is probably due to
how
Bollinger Bands are used. No shorting was used, first of all, and
buy
signals were only generated based on the lower bollinger band. And,
my
guess is that in most every major breakout the price is going to be
hitting the extremes of the bollinger bands, and run into the 3rd
standard deviaition throughout bold moves. The sell signals were set
at
the closing price +/- 2 standard deviations — so in effect probably
much of the BIG increases over time were in fact missed.There’s about 60 or 70 indicators listed. I just picked two of them
to
share…Anyway - for what that is all worth, I figured I’d share my “book
review”. It literally was an eyeopener. Plus the formulas are there
if
you want to copy them to a custom indicator. But, the results don’t
lie. Take them in the context that they were used. Thanks,
I don’ understand the “5 day price” - was this 5EMA traded on the Weekly TF?
The number one profitable trading strategy was a[B] 5 day[/B] exponential
moving average going long on the [B]5 day[/B] price crossing the EMA, and
selling short when the price retraces below the EMA.
Day means DAILY. That would be D1 on MetaTrader.
Have to love those 5 minute scalps!
Thank you for the clarification. d
I’ve been scalping off a 5 minute chart. Since I started keeping track of my stats here’s what I have:
Wins - 24
Loses - 11
Win Rate - 68.57
Pips Won 240
Pips Lost 157
Now I’m just trying to figure out what’s the best money management strategy. Right now I’m doing a 10TP 20SL. And please, if you’re just going to reply based on the assumption that the current setting is a failure, don’t. When you figure in winrate and size of position, you can come out ahead despite.
I’ve been working with a system called the 4xrazor and it has been treating me well. It uses a minute and five minute chart and four indicators, the macd, rsi, stockastics and ADX. It’s pretty simple and i’m in and out in less than a few minutes.
It’s been working.
Is there anyone else that is trading that system?
A
Lemme summarize for you.
“I’m selling a system for $99. Wanna buy it?”
Give the poster a chance to post the method/system/indicators BEFORE you make accusations.
So let’s see the system.
Post a chart with explanation.
hey mastergunner,
what system are you trading?
Feel free to make use of the very recommendation you give to us all so freely.
A simple google search will expose that poster’s intentions for what they truly are.
Slope direction and watching price action. No strict set of rules.
Guns,
That is not a good scalping system I say aim for less pips and pull that SL in a bit. What is the exact setup your using. I can try to help you out a bit. But 10 pips is kinda large goal to scalp.
10 pips can be gained scalping.
Depends on currency and time of day.
hey pablopluto, so what do you recommend as sl and tp?
I dont recommend any TP or Sl thats up to you to decide whats your risk levels and profit levels. Now I can tell you what I use on different currencies but that my own personal preference.
sorry wrong way to formulate.
being completely new i am just trying to get different strategies at work.
so what do you use.
i have just decided to try eurusd cos smller spread…
and since 10 pips is my goal im trying 10 pip(+2 spread) TP and 20 sl.
my thinking is that since i go with h1 my sl should only be there to accomodte nomral movement or prevent a reversal…
My apoligies. I dont use the H-line trading but 10: 20 is extreme. 10:15 might be the max I would go. Its up to you dont make yoy stops too tight though. On the Euro Usd I mostly use a 6: 8
Thats 6.9(.9 spread) and 7.1(.9spread)
AHA, an OANDA trader! lol 
I am playing with a 6 (TP) and 10-12 (SL) scalp on the EUR:USD on 5min charts 
steve 