Scalping Strategy

[q827]

Originally Posted by 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.

hmmm...i don't know guys

Fxmaster over in the Intraday Trade Recommendations forum has a good scalping thread u might find interesting. According to my calculations of his calls there he's near 90% winning that's using tight stops too.

[ernst773]

Originally Posted by 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.

whatever you say. it should actually read 'technical indicators used incorrectly is a terrible timing 'vehicle'. think you've got Forex mixed up with Ford.

[MuddBuddha]

I've had very good success scalping forex using a simple Stochastics chart @ 533 a 5-minute line chart. I merely just follow the stochastics' peak valleys.

It a simple yet successful method IF you avoid the news outbreaks don't walk away the computer for mor ethan a couple minutes at any given time.

[Patrick_Rhodes]

Originally Posted by MuddBuddha

I've had very good success scalping forex using a simple Stochastics chart @ 533 a 5-minute line chart. I merely just follow the stochastics' peak valleys.

It a simple yet successful method IF you avoid the news outbreaks don't walk away the computer for mor ethan a couple minutes at any given time.

Thanks for the rational reply. I also use short term oscillators like to use a very short term weighted moving average selling above buying below. I use the MACD RSI Aroon plus the wma. But I still maintain it is considerably easier to use the CME Futures Markets with a broker who charges the equivalent of less than one pip.

Patrick

[MuddBuddha]

I tried to use EMA @ 2550100 based on the strategy of another trader but found it very risky.

The EMA's move to quickly a enter signal to an exit without any real pip gain. Even combining them with Stochastics P SARS B Bs does absolutely nothing on a 5 min. chart except throw away money.

More reliable to use the EMA's with P SARS Stochastics on a 1 hour with a 15 min. verifier.

that's about all I know about trading....

[Patrick_Rhodes]

Originally Posted by MuddBuddha

I tried to use EMA @ 2550100 based on the strategy of another trader but found it very risky.

The EMA's move to quickly a enter signal to an exit without any real pip gain. Even combining them with Stochastics P SARS B Bs does absolutely nothing on a 5 min. chart except throw away money.

More reliable to use the EMA's with P SARS Stochastics on a 1 hour with a 15 min. verifier.

that's about all I know about trading....

Understood whatever works! I use an 8 period weighted moving average 5 minute chart since I am in out frequently with a small profit target. I use the 30 min 1hr 2 hr charts to confirm general direction increase safety.

[TR]

MuddBuddha Patrick_Rhodes are your entries fully mechanical perhaps your exits too? If you think at least your entry rules could be fully automated even if the exits aren't as profitable as trading them manually I'd be very interested in trying to make an MT3 expert out of your systems.
See more details in my post below.

[TR]

Tzachi
Glad to hear you're interested in seeing your system automated. Unfortunately I'm more a programmer than trader so could I ask you to lay out the exact entry exit rules you'd suggest that we start with? If you'd rather discuss the details privately that's fine too.
Only trading during certain times is not a problem. If you use multiple timeframes that makes things more complicated (since I haven't touched MT4 yet) but still doable.

- TR