WARNING IM NOT A TEACHER
this post is kinda crappy and probably doesn’t explain how I have been trading very well so be gentle.
*** Introduction ***
You can skip this it is just a background info on my attempt to develop a personal scalping system.
I have been having success trading without charts over the course of this last week and a half. About 1-3 hours of trading a day before I get tired of it. And about 10-30 trades during that period of time.
One market hypothesis is that past prices don’t affect future prices. This is not fact but I felt like this idea supported my method which is essentially tape reading in a simple form.
I found through trading 7 years of historical tick data played at 10-30x the normal speed it was incredibly easy to “ride” price waves at that speed. So I have been slowly decreasing the playback speed and have recently started trading live. With slightly lower success results but none the less success.
*** My General Rules ***
[B] 1. Hide your “Unrealized P&L” It is only there to inflict greed and fear and by only paying attention to price I seem to go from zero to hero when trading. I manage my risk through low leverage and cutting losers quickly[/B]
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Take profits are manually taken so they range anywhere from 0-10 pips.
(I leave a trade when I believe price as slowed sufficiently that staying in the trade is increasing my risk instead of my profits.) -
Stop losses are quick and manual Later explained my stops are typically 0.1-0.5 pips from my entry so losses are hopefully 1-1.5 pips total. The manual stop means pay attention and be quick because price can go negative quickly so cut em quick.
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I trade during Asian sessions. I read that price seems to range more during asian sessions and since finding a trend requires looking at and deciphering past data on charts and picking the right direction which I seem to get wrong more than not I choose to be unbiased in my trade directions.
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This is considered scalping so who knows. I hear that there are no long term successful scalpers. Which is why I have been testing this on the 7 years of tick data at various portions throughout each year. But times change so don’t bet the farm, bet demo bucks instead.
*** Trading Method ***
After prepping yourself this is how my typical trade setup goes.
Example:
USD/JPY
Spread 0.6-1.2
MBTrading
500 Dollars Deposit
1000 unit trades
So my last trade went something like this.
I watch the last digits of the bid hit these numbers in this order.
887,886,883,885,888,
883,884,880,878,877,
876,879,882,875,874,
875,877,880,875,876,
870,865,864,870,867,
869,866,867,866,865,
I paid attention to
how quickly price was dropping and returning back up.
and how far price had gone down and when it had stopped pushing lower numbers
I felt that I could get in at around 867 and exit hopefully at a higher price
My stop would be at 863 (.1 pips lower than the previous low of 864)
I then wait for price to make this similar slowing down of movement but in a positive direction to signal my exit for TP.
In a nutshell I watch price to get a feel for its average movements and the speed at which they react come, then enter when price has trouble continuing those movements.
Example movements
up 2, down 5
up 2, down 5
up 3, down 4
up 3, down 3
up 4, down 3
go long here