Scalping FX with Cyrox Rainbow

[tayser]

Chart speaks for itself really.

Time Order ID Message Event TIF Orig Trader ID
23:00:46 0w9002s:0dd7-00 Buy 150000 GBP/JPY @ Market on MBTX [expiring: 5/06/2008] (150000 traded at 206.42) Filled GTC
23:01:39 0w9002s:0di3-00 Sell 150000 GBP/JPY @ Market on MBTX [expiring: 5/06/2008] (150000 traded at 206.54) Filled GTC

12(10). Next up Euro in 35 min.

 

[tayser]

Euro was rubbish.... no trades... bedtime.

 

[tayser]

Yabba dabba doo?

A nervous first trade, followed by a neg trade where I broke the golden rule! (get out as soon as you feel it go against you - I saw the price cross the spine but ignored as you need to give Sterling a little lee-way... argh!), then on impulse got a nice little retracement trade.

After a few more positives, this has capped my night right off. All three were smashing down against the support, I took my position as it was coming down again toward the .00 level and then violence ensued. I held on around the .62/.63 level for 20 seconds and just got out with 37 piparinas:

my lovely yen crosses:

what a night!

Time Order ID Message Event TIF Orig Trader ID
17:54:49 0wa012s:04ag-00 Sell Short 150000 GBP/JPY @ Market on MBTX [expiring: 6/06/2008] (150000 traded at 206.60) Filled GTC
17:55:16 0wa012s:04bl-00 Buy 150000 GBP/JPY @ Market on MBTX [expiring: 6/06/2008] (150000 traded at 206.56) Filled GTC
17:59:02 0wa012s:04k9-00 Sell Short 150000 GBP/JPY @ Market on MBTX [expiring: 6/06/2008] (150000 traded at 206.25) Filled GTC
18:01:01 0wa012s:04nt-00 Buy 150000 GBP/JPY @ Market on MBTX [expiring: 6/06/2008] (150000 traded at 206.39) Filled GTC
18:04:20 0wa012s:04td-00 Sell Short 150000 GBP/JPY @ Market on MBTX [expiring: 6/06/2008] (150000 traded at 206.57) Filled GTC
18:07:23 0wa012s:04ww-00 Buy 150000 GBP/JPY @ Market on MBTX [expiring: 6/06/2008] (150000 traded at 206.45) Filled GTC
18:27:18 0wa012s:05oz-00 Sell Short 150000 GBP/JPY @ Market on MBTX [expiring: 6/06/2008] (150000 traded at 206.25) Filled GTC
18:30:37 0wa012s:05ub-00 Buy 150000 GBP/JPY @ Market on MBTX [expiring: 6/06/2008] (150000 traded at 206.20) Filled GTC
18:31:57 0wa012s:05x4-00 Buy 150000 GBP/JPY @ Market on MBTX [expiring: 6/06/2008] (150000 traded at 206.20) Filled GTC
18:32:20 0wa012s:05yj-00 Sell 150000 GBP/JPY @ Market on MBTX [expiring: 6/06/2008] (150000 traded at 206.23) Filled GTC
18:36:16 0wa012s:0653-00 Buy 150000 GBP/JPY @ Market on MBTX [expiring: 6/06/2008] (150000 traded at 206.34) Filled GTC
18:38:55 0wa012s:068s-00 Sell 150000 GBP/JPY @ Market on MBTX [expiring: 6/06/2008] (150000 traded at 206.38) Filled GTC
19:24:43 0wa012s:08gp-00 Buy 150000 GBP/JPY @ Market on MBTX [expiring: 6/06/2008] (150000 traded at 206.09) Filled GTC
19:27:33 0wa012s:08mv-00 Sell 150000 GBP/JPY @ Market on MBTX [expiring: 6/06/2008] (150000 traded at 206.14) Filled GTC
19:31:44 0wa012s:08t3-00 Sell Short 150000 GBP/JPY @ Market on MBTX [expiring: 6/06/2008] (150000 traded at 206.00) Filled GTC
19:35:09 0wa012s:093e-00 Buy 150000 GBP/JPY @ Market on MBTX [expiring: 6/06/2008] (150000 traded at 205.63) Filled GTC

4(2), -14(-16), 12(10), 5(3), 3(1), 4(2), 5(3), 37(35), total 56 gross, 40 net. (roughly equivalent to 20 pips on AUD/JPY)

BEER O'CLOCK!

 

[johnnyg]

Great thread tayser, im just getting started using the Oanda Demo. Im currently using Candlesticks on a 1 min chart trading mostly AUD/USD and EUR/JPY using the Rainbow WMA's.

 

[tayser]

Have you tried a faster timeframe? 1 minute chart with candle sticks (and in particular some other indicators - I have a bog standard GMMA running on mine (see above)) are good for trend confirmation, but have a crack with a faster timeframe line chart...

Go the second chart on the NinjaTrader + EFX combo!

 

[johnnyg]

Cheers Tayser, Ill have a look. Currently im using 1:50 leverage and trading 10000 units using a margin for $200-$300 AUD.

Talking about a fast move did you see the EUR/JPY about 5 minutes back? Moved 1 cent in about 4 minutes. Being a newbie is that kind of movement normal? Doesnt look like it looking back over the charts. LOL Scalped a few pips coming back down though.

 

[tayser]

Normal after big news announcements / something that spooks the market.

Use EFX, not Oanda... You wouldn't use a market maker to scalp live, so you might as well practice with an ECN. You start with $10k balance and if you use the same lot size (which is one lot on EFX), you're only using 1% of the account balance (1:100 leverage).

Go back a page or so, I posted directions how to get the EFX + NinjaTrader combo up and running.

cheers

 

[tayser]

Something just spooked Mr Yen, either that or everyone was sick of waiting for resistance @ 96.15 to be breached hah.

e Order ID Message Event TIF Orig Trader ID
21:27:02 0wf002s:0dp8-00 Sell Short 150000 AUD/JPY @ Market on MBTX [expiring: 11/06/2008] (150000 traded at 96.04) Filled GTC
21:27:19 0wf002s:0dqo-00 Buy 1500000 AUD/JPY @ Market on MBTX [expiring: 11/06/2008] (150000 traded at 95.93) Filled GTC
21:27:35 0wf002s:0dro-00 Sell Short 150000 AUD/JPY @ Market on MBTX [expiring: 11/06/2008] (150000 traded at 95.95) Filled GTC
21:28:04 0wf002s:0dtx-00 Buy 150000 AUD/JPY @ Market on MBTX [expiring: 11/06/2008] (150000 traded at 95.85) Filled GTC

19's more than enough.

 

[johnnyg]

All set up now using Ninja & EFX. Quick question regarding Stops using EFX Tayser. I Use a market stop and set the stop a few points above the bid (when shorting and vice-versa for going long) however when the price goes threw my stop price, my order doesnt get closed out? Any ideas? Or am I setting it up wrong?

 

[tayser]

Right click any of the order entry screens in Navigator and select preferences. Down the bottom there's a stop method selection - try either of them. I don't really know sorry, I don't use stops that close to the market so I've rarely had them hit!

TRy and only set a stop of about 20 pips away from where you enter - this is purely a disaster recovery stop (i.e if your PC goes haywire while you're in a trade and the market moves against you this is your security) but at all times, keep a mental stop loss and act on that.... 6-8 pips is a rough guide (never let the market get to the point where you'll exit a trade on the disaster recovery stop). When you enter a trade, you set the stop 20 pips away and if you want to close the trade you need to first cancel the limit (stop) order first before exiting on market or another limit order. It's a bit clunky, but it works.

 

[johnnyg]

Im only using stops so close just to make sure im setting up the trade properly (trying for the stops to be hit and the trade to close) however I still cant get the stop to work.

Tayser, if you wouldnt mind, could you do a step by step of how you set your stops on EFX Navigator and Ill give it a burl.

Cheers.

 

[tayser]

Use a market + trailing stop order (or limit + trailing stop) in your order entry screen set. Set the trail offset to 0.20, enter your lot sizes, then go long or short. If you watch the orderbook your trailing stop will be set after you're filled.

You have to cancel your trailing stop order when you want to close the trade. I set up hotkeys in Navigator: F2 = Close all positions. F3 = Cancel all orders. Go to Navigate > Preferences, then click next all the way to the 2nd last screen where you can set up hotkeys. Click Add, click in the keystroke field then hit the key you want to assign the function to (F2), then select Close all Positions (Account), click ok. Repeat for F3 (Cancel all orders) then ok.

Close navigator and re-open and you'll be right to go. When I'm ready to exit, it's always just a combo of hitting F3 first (need to wait til order is cancelled) then F2.

 

[onemore]

Tayser,
Will you be trading this method with money one day?

 

[tayser]

Live with an ECN will be in the new tax year - need time to save a more decent deposit and I'm about to hit the HECS threshold - and I dont want a nasty tax slug in 07/08 which may affect my initial ECN deposit.

incidentally I am already, albeit it a small oanda account:

"post" newstrading with rainbow (really only following the price action rather than the WMAs in this instance) on the Yank CPI release at 11:30pm.

 

[onemore]

Look forward to your post then.I hope nothing changes and it goes well for you.

cheers

 

[tayser]

So do I, I have my resignation letter already written up - I just need to change the effective date (best case scenario: end of the year, worst case scenario: end of 08/09 financial year - no in between!)

 

[Andy_aus]

Good on you Tayser, ill look forward to hearing from you when u hand in that letter. Im still a few months behind you yet, have been demo trading for the last few weeks, but its all starting to come together now. Ive found that using 20 second charts on NT and MBT more up my alley.

I get too panicky, too slow, and i cant see the big picture with the 5 second charts.

 

[tayser]

When you find something that sits well with you: stick to it. You're always bound to find your own style using this method. I'll admit alot of my decisions were based on the slower timeframes (it's a lot easier as you say to see the big picture) - as time goes by I'm relying on it less and less and being guided by the price line on the 1 second chart!

The slower timeframes are almost a must when you first start your session - you need to see what's happened in the last few hours as pairs move through active and inactive waves, you want to catch a ride in the active waves.

Incidentally, did anyone see the liquidity on AUD/JPY last night after NY open on EFX? typically 30,000,000 - 40,000,000 on offer over 2 pips and then some.........

 

[prawn_86]

Well done Tayser,

good to see the progress you are making. Hopefully you can reach your goals sooner rather than later

I havn't been able to get in front of the screen lately, due to too many other commitments, but i do still like the method.

Are you keeping track of your daily pips? If so what is your average over the past month (if you want to say)? Are you hitting your target each day yet?

 

[tayser]

havent been full time trading the past 2-3 weeks. In the past fortnight: 5 positive days, 2 negative days.

I've exceeded my targets on all the positive days (the target is the equivalent of 10 pips on AUD/JPY) - across three different pairs too.

Balance is reset today so Monday's a time for playing with different levels of lot sizes & aggressive and conservative scalping - until I go live in July, I'm just going to tinker around a bit.