Scalping FX with Cyrox Rainbow

[tayser]

One thing to remember: after big moves, price invariably does not come straight back down. What happened on the EUR/USD in your first chart is pretty commonplance - it stabilised and bounced around in a range for a while, when it does this, you're looking for contrarian trades (your picking the top/bottom and taking the opposite view - as I discussed above you enter when the price and flame disappears inside the rainbow AFTER some event like a series of lower highs etc etc).

Your last trade is very good, price broke previous highs, lots of shrp up moves to suggest something's brewing - you need lots of momentum and a lot of indicators such as lower lows to pick a big move and you correctly did it and more importantly held it.

 

[prawn_86]

Welcome Metalhead

Just one thing. You said you dont like to have more losers than winners. That is not the point. You could have say 10 3pip losers and 5 6pip winners and still be in front.

That is why getting out early is a key part (which i struggle to do at the moment)

 

[Trembling Hand]

Also you can see my account value in the second attachment since I have started trading with this method. My losses are bigger than my gains because of the spread (I only trade when the spread on EUR/USD is .9 pips... I can't imagine how people trade with bigger spreads. I'd blow out my account instantly).

Just a look at these moves up and down. Although there is not enough to make a call. It seems you may run into some trouble. With the naked eye you losers are larger that most of your winners, maybe even double! That's is going to make the task close to impossible to survive long term. Nothing more depressing than giving back a week of good work with one bad day.

On the stop what does the Cyrox system say as to the maximum % of account. From a couple of examples I have seen it looks like way to much is being bet per trade.

 

[disarray]

you're range trading. with the spread and commish you'll just bleed money slowly and surely. you want to hop onto new trends rather than position yourself in a range and hope it breaks out the way you want it. and lol at owned.jpg

 

[roland]

This was the response I received this morning after I quizzed MB Trading on the poor performance of the demo servers last night:

We are testing new features in demo right, that’s probably why you have and will experience some lags or inconsistent behavior over the next couple days. Before we launch anything live, we always test on our demos first.

Justin LeBlang

Business Development

MB Trading

 

[julius]

Try saving the charts as .gifs

The colors will turn out better.

 

[prawn_86]

Got my target in one trade today

Now i just have to keep working on only entering these sort of trades
03:21:56 AUD/JPY Executed Sold 30000 AUD/JPY at 94.29
03:20:18 AUD/JPY Executed Bought 30000 AUD/JPY at 94.23

 

[tayser]

EFX's demo is still up **** creek tonight.

Anyhow, took some earlier losses, clawed back to be positive. Might look for another trader closer to Yank open.

Time Order ID Message Event TIF Orig Trader ID
18:06:07 0x1002s:08is-00 Buy 300000 AUD/JPY @ Market on MBTX [expiring: 3/07/2008] (300000 traded at 94.32) Filled GTC
18:07:35 0x1002s:08lr-00 Sell 300000 AUD/JPY @ Market on MBTX [expiring: 3/07/2008] (300000 traded at 94.28) Filled GTC
18:11:28 0x1002s:08se-00 Sell Short 300000 AUD/JPY @ Market on MBTX [expiring: 3/07/2008] (300000 traded at 94.21) Filled GTC
18:13:02 0x1002s:08wq-00 Buy 300000 AUD/JPY @ Market on MBTX [expiring: 3/07/2008] (300000 traded at 94.20) Filled GTC
18:30:59 0x1002s:09tk-00 Sell Short 300000 AUD/JPY @ Market on MBTX [expiring: 3/07/2008] (300000 traded at 94.29) Filled GTC
18:31:48 0x1002s:09yt-00 Buy 300000 AUD/JPY @ Market on MBTX [expiring: 3/07/2008] (300000 traded at 94.26) Filled GTC
18:32:41 0x1002s:0a3i-00 Sell Short 300000 AUD/JPY @ Market on MBTX [expiring: 3/07/2008] (300000 traded at 94.20) Filled GTC
18:34:34 0x1002s:0aee-00 Buy 300000 AUD/JPY @ 94.15 Limit on MBTX [expiring: 3/07/2008] (300000 traded at 94.14) Filled GTC

Why oh why did I place a limit order? (oh well, positive slippage on it )

 

[roland]

hey prawn, I'm doing OK tonight as well. What sample time are you using? It's quite surprising how different the chart looks with different time samples.

If you take a larger and courser sample you can see a better trend which may help to give preference over whether we should be weighting decisions on whether we should have a closer interest on shorting or taking long positions.

If we keep within the overall trend, then the loses should be reduced ???

 

[prawn_86]

Its a 1 second chart

If we keep within the overall trend, then the loses should be reduced ???

Not too sure about that Roland. Im a fair newb at this myself.

What this method trades is pretty much 'noise' on longer timeframe charts. So if you stick to the longer trend, you may as well not worry about the short term charts.

I sometimes use a 30sec chart for major support and resistance points, but that hasnt been very useful lately.

I know tayser watches the EUR/JPY and USD/JPY for confimation.

 

[prawn_86]

Can a chartist please tell me:

Is that an inverse head and shoulders at the botom of the chart i just posted?

 

[tayser]

I have AUD/JPY, EUR/JPY and GBP/JPY visible in a metatrader window on the M1 charts which is what I use for confirmation.

USD/JPY doesn't move the same way as those three... it's like AUD/USD or EUR/USD... it can move, but it's very slow.

 

[tayser]

my desktop setup:



metatrader stuff: old monitor I flogged from work D) and everything else (main screen) is a 22 inch Widescreen.

 

[prawn_86]

my desktop setup:


metatrader stuff: old monitor I flogged from work D) and everything else (main screen) is a 22 inch Widescreen.

Very nice.

One day i'll steal something worthwhile from my work...

 

[tayser]

Trade #1 you might be thinking: he's just winged it or it was luck. Actually it's a very easy way to get a pip or two... price gravitates towards the .00 levels all the time and this is just exploiting it. Truth be known I was slipped like no tomorrow, well sort of, the FX quotes on EFX demo are not in synch with the actual price available to the orderbook at the moment, I did a market order at .95 on the ASK, so straight after I saw that I got filled at .99 I hit the sell and got out lol.

Trade #2: pretty obvious break of support, again slipped due to quotes not being in synch. OH well, pip positive.

Time Order ID Message Event TIF Orig Trader ID
22:13:31 0x1002s:0mkr-00 Buy 300000 AUD/JPY @ Market on MBTX [expiring: 3/07/2008] (300000 traded at 93.99) Filled GTC
22:13:57 0x1002s:0mlk-00 Sell 300000 AUD/JPY @ Market on MBTX [expiring: 3/07/2008] (300000 traded at 94.01) Filled GTC
22:23:28 0x1002s:0n4m-00 Sell Short 300000 AUD/JPY @ Market on MBTX [expiring: 3/07/2008] (300000 traded at 93.75) Filled GTC
22:23:39 0x1002s:0n5n-00 Buy 300000 AUD/JPY @ Market on MBTX [expiring: 3/07/2008] (300000 traded at 93.69) Filled GTC

 

[Andy_aus]

Hey metal head i noticed from the trades that you made, the first few where you went long in anticipation of a trdaing range break out, you werent following the spine. Wait for the spine to turn, it will filter out most of the false breakouts.

 

[prawn_86]

Now i remember why i only trade london open...

Got out at b/e at least

 

[prawn_86]

Continuing with holding my losers longer than my winners

First trade -7
2nd trade +2


02:41:42 AUD/JPY Executed Bought 30000 AUD/JPY at 93.53
02:41:07 AUD/JPY Executed Sold Short 30000 AUD/JPY at 93.56

02:40:27 AUD/JPY Executed Sold 30000 AUD/JPY at 93.57
02:32:54 AUD/JPY Executed Bought 30000 AUD/JPY at 93.63

 

[prawn_86]

+3 more.


03:15:41 AUD/JPY Executed Bought 30000 AUD/JPY at 93.53
03:11:35 AUD/JPY Executed Sold Short 30000 AUD/JPY at 93.57

 

[prawn_86]

+1 more. Contrarian trade, looking for bounce down off .60

It certainly is choppy tonight...

03:40:09 AUD/JPY Executed Bought 30000 AUD/JPY at 93.56
03:38:14 AUD/JPY Executed Sold Short 30000 AUD/JPY at 93.58