Scalping Strategy

[Ray G]

Okay haven't posted in a bit that's good. If I'm posting I'm not trading.

I said before that I was riding the ranges making a few pips getting out but had not settled on any specific discipline or strategy. This made for too many mistakes; I've sold into three up-trends. Ouch.

Anyway still refining what works for me but for now I'm doing a simple RSI set at 8 a MACD oscilator set at default. This has worked on 9 out of my last 10 trades that 10th one was kind of stupid on my part anyway.

I just sold into another uptrend but had the time to wait it out get my pips out of it anyway. SoundFX had joked about this kind of trading making one twitchy; a 2 hour "scalping" does make a person want to get off of the computer for awhile. Or at least go goof off at fx forum.

Let the advice flow I'm all ears. The RSI/MACDosc works well I've been experimenting with a couple of others here there to get the right mix.

[ernst773]

doesn't really matter which indicator you use as long as it cuts out as much noise as possible but still be very close to price action. then you've got good visual divergence whether at support/resistance or retracement level. momentum you get divergence of the same fast indicator on a different time frame. time is more important than price or time is money thats why it's pointless to place an order at a specific time of day everyday. let's call it curve fitting. scalping sounds sore.

[Patrick_Rhodes]

Originally Posted by MickMason

What's to compare you say brokers target scalpers join s with their competitors to relieve clients of their money I say it doesn't happen.....nothing much to it really. I day trade sometimes I scalp a few pips as well when it's quiet never had any problems. I can't really say scalping is the best strategy but scalping without a stop I can tell you is financial suicide....down the tubes slow but sure.

You trade any way you like friend after all it's your money.

Mick

Anyone who is a true scalper is only into a trade for a few seconds because that is how long it takes to make or lose a few pips. If you place a stop only a few pips away (your target) guess what will happen? Stops are just a target for losses to a scalper. Obviously you must be confused about what scalping is.

[MickMason]

Originally Posted by Patrick_Rhodes

If you place a stop only a few pips away (your target) guess what will happen? Stops are just a target for losses to a scalper. Obviously you must be confused about what scalping is.

Well now I'm even more confused than ever or perhaps it's you!

How is a stop 'your target'? 'Stop' is short for 'stop-loss' a price where a trader recognises his trade is no longer viable accepts a loss. Stops are used to limit risk protect capital without a stop-loss you may as well just write a cheque to your broker save yourself a lot of time!

Scalping for 3 or 5 pips is fine in theory but putting it safely into practice without any idea of where your stop is going to be is a guarantee to go broke sooner or later Brokers don't mind your sort of scalping they know they're only lending you the money for a little while it's all coming back their way with the rest of your capital it's just a matter of time they're patient.

But like I say it's your money you can spend it any way you want after all said done my profits have to come somewhere!


Mick

[Patrick_Rhodes]

Originally Posted by MickMason

Well now I'm even more confused than ever or perhaps it's you!

How is a stop 'your target'? 'Stop' is short for 'stop-loss' a price where a trader recognises his trade is no longer viable accepts a loss. Stops are used to limit risk protect capital without a stop-loss you may as well just write a cheque to your broker save yourself a lot of time!

Scalping for 3 or 5 pips is fine in theory but putting it safely into practice without any idea of where your stop is going to be is a guarantee to go broke sooner or later Brokers don't mind your sort of scalping they know they're only lending you the money for a little while it's all coming back their way with the rest of your capital it's just a matter of time they're patient.

But like I say it's your money you can spend it any way you want after all said done my profits have to come somewhere!


Mick

Like I say scalping is for only a few points not 10 or 20 most forex platforms will not even let you place a stop for that short a distance the most recently traded price. In truth I do not believe the forex market even qualifies as a viable market for true scalping. Take it one who has done it for over 10 years.

Patrick

[Dave Floyd]

quoting Patrick:

"In truth I do not believe the forex market even qualifies as a viable market for true scalping. Take it one who has done it for over 10 years.

Patrick"

Could not agree more Patrick....the only people who might have a better than average chance of scalping forex are those with institutional spreads (1 pip)....I have scalped stocks for nearly 12 years have never been able to scalp FX.

[Dave Floyd]

One other thing if you do want to try scalping regardless of market become a tape reader not an expert at technical indicators. Technical indicators are merely a useful filter but a terrible timing vehicle.

[MickMason]

Originally Posted by Patrick_Rhodes

Like I say scalping is for only a few points not 10 or 20 most forex platforms will not even let you place a stop for that short a distance the most recently traded price. In truth I do not believe the forex market even qualifies as a viable market for true scalping. Take it one who has done it for over 10 years.

Patrick

I was talking about a mental stop but not to worry.

The original issues were 1) the viability of scalping 3-5pips without any form of stop-loss 2) whether brokers (with the help of rival brokers) target scalpers by manipulating price between them (your suggestion!) 3) whether brokers flagged an account where the trader only keeps a trade open for a short time. All those issues have been addressed but just to recap: No it's not viable to try scalping 3-5 pips as a trading strategy without any form of stop. No brokers do not work together to target scalpers. no there is no radar scanning for traders who only hold a position for x minutes.

I trust that answers your questions?

Cheers

Mick