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[nzbryant]

Are you getting decent returns now Zardetto?

[autofx]

Originally posted by zardetto
Sorry to hear your plight. I have been there. I think the best way to get confidence back is to open a DEMO account (no capital at risk) and simply trade your system, as rigourously as possible until it becomes second nature. BTW, I am a newbie too I've only been trading for about 6Mo, but I took a really bad wipe-out...going on a demo account helped me get my confidence back..

So true.

Use the demo account trading as a chance to learn to sleep on
trades and develop real discipline.

This would be my advice to newbies.

[nzbryant]

Im losing faith in currencies - it is so random compared with equities. I am doing 10% a week in equities, partly because volume is available as another variable to examine, and companies often are evolving or destructing, making long/short picks easier.

[autofx]

Ten percent per week, you say?

Astonishing. Do you believe you can sustain that? If so, we'll
be reading your name in the same sentences as Buffett
and Templeton in the Wall Street Journal in no time.

What kind of risk are you taking on your equity trades???

[nzbryant]

I cycle every week based on a stock selection system. Low risk as 2x leverage, 6-8 securities, diferent sectors, all in strong uptrends, with low valuations. The exact risk cant be measured easily, though if one falls 30% in a week, then I lose 8.5%.

[foroz]

nzbryant

I'm sure I read that you worked out what Beau Diamond's daily system was. Are you by any chance trading his daily system? If so, how does it measure up?

If you have a method for equities have you looked at doing options or cfd's instead? Your results are very impressive.



Regards

[nzbryant]

Thanks

Beau's system seems to be based on a couple of simple indicators and trailing stops (I wont give his game away). Doesnt work in ranging market, only on trends.

Stocks: too much risk with options and CFDs for me - would have to watch intraday to be comfortable. With stocks I am comfortable with end of day data.

[PittsburghFX]

Originally posted by carrotguy


I've read your post in another thread about scalpers taking up liquidity.... What distinguishes scalping from risk management/taking profit? The duration of the trade or the decision to take profit after a gain of <20 or so PIPs?

Would trading mini-lots affect the decision to watch for scalping as well?

Furthermore, you mention getting shutdown... is this put on manual execution or do they close your account?

Thanks.

If you constantly trade ultra short term, you will be shut down. Taken off instant execution, and your fills will take up to 2 min or more. Your strategy that made you hundreds will no longer work to make thousands.

Pickers can be trading 1 mini lot at a time, size doesn't matter. I look at it like getting a traffic ticket. You didn't kill anybody, but you are warned to never speed again.

There are a few peoples accounts that were so bad trading millions we did shut the down and froze thier account and wired their money to them.

WHat they were picking and scalping was my monthly salary in literally 12 - 18 seconds. They knew what they were doing because it is too easy, thus taking advantage of the MM.

[PittsburghFX]

Originally posted by daentay
Hi everyone,

If the system that I am trading goes for 20 pips every trip, and it can go up to 6-7 times a day, is it considered scalping to the MM?

My backtested data shows that I would generated spread for the dealer as much as my profit e.g. If profit = 200 pips, I would have generated 200 pip spread. How would a MM deal with a situation like this?

Very Interesting. Test it on the demo account first to see your results.

If you take a profit in less than 2 minutes, even 5 min in fast moving markets, you are going to be audited just to make sure your price was at market. IF you were than you are fine, however, to be honest, if you start making money short term like that odds are you found a way to take advantage of the instant execution. To test it otherwise, trade the exact same strategy with the futures contract. Odds are you will not be able to.

FX only has the advantages because the companies are the direct trader, not a central exchange. If it would not work in futures than you'll be put on dealer intervention within 3 months.

Regarding the dealer spread, you will never know what the outcome came of the spread, they check the Rueters prices and interbanks price feed with times and seconds. The spread is realistcally made when internally traded or they offsett NEt aggregate position at a profit.

[foroz]

PittsburghFx

The more I read of what you write, the more I am inclined to trade with a bank. The picture you paint is that of the "other side" that changes the rules so that we, the clients have little chance in this forex game. It is an uneven playing field.

We the traders have seen that slippage is now to be expected with NFP and other announcements.

If you go to a casino, they have legislated rules with which to comply. Forex, it seems, is that if someone is taking money from the Market Maker, then they change the rules so the clients lose their money.

Please tell me I am wrong.

Maybe this all points to a central forex market maker where both sides are controlled by central world-wide laws.


Regards

[PittsburghFX]

There is nothing unethical going on anywhere, but all these newbies have no idea what they are doing.

The term BANK you refer to, from what type of Bank you want to trade YOU NEVER WILL. Anyone that would let you open an account with less than 100 million is all structured the same way. Saxo Bank, is not a bank for example, also there is some bank in Boston I think, they are structured the same way but they are trying to give the image of a bank, they are not. Its a all trading through.

[daentay]

Thanks Pittsburgh FX for your replies, its enlightening .

If the strategy I adopt does not catch pips in a fast moving market all the time, but throughout the day.

I am hoping to get more insights from you before I run it live with automation.

In the senario given in the picture posted,
I would have generated 1254 pips spread with 418 trades (yes, 3 pips) for EUR/USD pair for the strategy for 5 days of trades.

and the net profit (profit - spread and interest) for me is about 560 pips.

The shortest timeframe from opening to close is 1 min.

please comment more , thanks and regards.

P.S. If anyone knows of the whereabouts of any order routing software for wealth-lab that has limit and stop orders for FXCM, please post it, I am sure a lot of people would order

[daentay]

for the above results, I am pyramiding 3 lots for 560 pips, not 1 lot only.

Regards

[foroz]

PittsburghFx

the picture you paint is of a MM who changes the rules to weight things even more in their favour if you decide to scalp. How can such actions possibly attract new customers?

From what you have said the MM's make money on the spread but don't want to give a client the opportunity to trade the market and win, so they'll run the stops and/or put you on manual trades so they win and scare you away.

What a totally uneven playing field.

It is making me appreciate the regulators we have here in this country who it seems are trying to protect us from the "big sharks" out there in the forex world.


Regards

[PittsburghFX]

Originally posted by foroz
PittsburghFx

the picture you paint is of a MM who changes the rules to weight things even more in their favour if you decide to scalp. How can such actions possibly attract new customers?

From what you have said the MM's make money on the spread but don't want to give a client the opportunity to trade the market and win, so they'll run the stops and/or put you on manual trades so they win and scare you away.

What a totally uneven playing field.

It is making me appreciate the regulators we have here in this country who it seems are trying to protect us from the "big sharks" out there in the forex world.


Regards

Sir,

I totally understand your frustrations and expectations. The Forex market does have many advantages over everyother market, but I feel that the key is not scalping and picking.

No MM likes pickers because basically what they do is steal the spread out from underneath the market maker.

As long as you pay the spread there is never any doubt or question of what the problem is.

You will be totally satisfied in a few years when the market makers are pip for pip with the interbank, and then everyone will trade off of instant execution and dealer intervention will not be needed.

Pickers take advantage of the delay and technology in prices.