Scalping FX with Cyrox Rainbow

[tayser]

Re: Linuxtroll simple scalping

ta prof & trade_it.

Tayser I am Apocalypto on FF,

I am also going live in 2 weeks time on Efx, I just hope swapping my usd account to AUD won't be a prob when that option is up and running.

Frink the challenge now, is to be able to determine the 20 pip movers to the 5 pip thrusts!

As good as Tokyo may be and after my own personal experience, I agree with tayser, for now I only trade from 6pm to 9pm pre to london open. once i get 15 pips I am out for the day. I still have problems with holding my trades but the Cryox Rainbow offers great possibilities.

yeah, I noticed the avatar similarities

Have you received any mail from EFX re: changing account denomination options? The only info Justin on FF has given out is that it's happening 'soon' - i.e today's effort might have had tighter results for me - you're dealing with bloatware++ when scalping with Oanda.

prawn: a pip is the smallest amount that a currency pair can move by. www.investopedia.com has good FX intros.

Cheers.

 

[doctorj]

Re: Linuxtroll simple scalping

Congrats on being in the green.

So, am I reading it right that you trade in the direction of the trend when the red line moves outside of the bands?

When's the exit? How much room do you give it to move before exiting for a loss?

 

[tayser]

Re: Linuxtroll simple scalping

Congrats on being in the green.

So, am I reading it right that you trade in the direction of the trend when the red line moves outside of the bands?

When's the exit? How much room do you give it to move before exiting for a loss?

You trade in the direction of the trend and look for different entries like trend continuation (my last two trades) - look for price moving through even numbers like .10, .20, .30, .40 etc and look for action around the 5 min lines.

Basic support and resistance applies and look for breaks of both.

The key is only to go for a small target, so you keep the scalps really really short (seconds!)

The Exit is only one of two things: get out when you feel it goes against you (you can capture huge moves with this and you can get out before big moves against you if you just use that rule) or when you hit a pre-set target (like me: 10-12 pips in one trade and that's it - out).

It's interesting and hindsight's a beautiful thing, that I tried to go long on both shoulders of that H&S formation On the right shoulder I was aware this could be the right shoulder forming - I took the trade anyway because it was a high probability entry (price moves upwards through both 5 minute and horizontal .10 line) - BUT I stuck to the rules and I got out when I felt it move against me.

After exiting, knowing I'd hit a shoulder, I could have gone for the agressive entry shortly after (price crosses (yellow) spine and moved through a .10 level once again) - and look how it turned out. In fact I only started scalping again until I knew that the trend had changed (confirmed by it breaking earlier support (left of chart)).

cheers.

 

[tayser]

Re: Linuxtroll simple scalping

here's a beautiful entry/trade (this was demo - have to be disciplined once you have your daily target! )

The slope of the spine is downward (the trend), tested support twice and came back down for a third go - entered, seconds, bam..... dooooooowwwwn she goes. I got out with 5 pips, but see - if I held, that would have been my target in one day.

$ching$

 

[>Apocalypto<]

Re: Linuxtroll simple scalping

done for the day.

#1 (already posted before)
#2 (first trade on this chart) - bad entry, good exit however (golden rule: get out when you feel it goes against you).
#3 High probability entry (prive moved through the 5 min line and an even .00 line) which turned out not to be! (ah well, lifes a bitch) - went sideways (golden rule: get out when you feel it goes against you) - good exit.
#4 price fell through .90 level (looked like trend would continue), quick exit for 3 pips
#5 price fell through .80 level (trend continuation like #4), held longer than usual - paid off nicely. Exited on 12 pip target.

Net 10.5 pips up. $ching$

Tayser

nice trades tonight, and great score of 10+ pips! great charge chief!!
seeing you in the action makes he hungry to go live sooner!

Have you looked at Phillip Nell's 4 hour set up much on FF?

In the words of a scalping master "charge on make millions!"

.....................

 

[tayser]

Re: Linuxtroll simple scalping

Tayser

nice trades tonight, and great score of 10+ pips! great charge chief!!
seeing you in the action makes he hungry to go live sooner!

Have you looked at Phillip Nell's 4 hour set up much on FF?

In the words of a scalping master "charge on make millions!"

.....................

lol, that was the first system I looked at! I just don't like the timeframe.

TrendFollower 5 min is up my alley though, in fact I use the pivot indicator from that suite that was posted to guide me with LT

 

[tayser]

Re: Linuxtroll simple scalping

In the words of a scalping master "charge on make millions!"

.....................

See attachment - everyone needs a pip plan.

remember to update exchange rates, and play around with lot sizes to suit your risk profile. Anything coloured in blue is changeable.

millllllllllionnns.

 

[tayser]

Re: Linuxtroll simple scalping

Just looking at Tokyo open right now. 10 pips? no problem!

 

[Flying Fish]

Re: Linuxtroll simple scalping

How do you get a login for forexfactory.com

 

[>Apocalypto<]

Re: Linuxtroll simple scalping

Tonights trades on AUD/JPY.

had two losses, 1 a peace on EUR/JPY & AUD/USD so it was not all smooth sailing.

Tayser I am now playing on the AUD/JPY primarly as the brokerage is much lower then the EUR/JPY.

charts are of my AUD/JPY trades:

 

[tayser]

Re: Linuxtroll simple scalping

...pippin'...

30+ up tonight

done for the day.

 

[disarray]

Re: Linuxtroll simple scalping

tayser, thanks heaps for this thread. there are so many trading options available i wouldn't know where to start so your info on where to go, what to play and the rules of the game has opened up a whole new avenue for me. i went straight out and bought another monitor and dual card so i can have a few charts up.

a few questions -

1. is real life trading exactly the same as onanda fxgame? if the only difference is playing real money and everything else is identical then thats really sweet.

2. i'm still not 100% sure on margins and so on (hate that side of it), so basically i put $30,000 in their account, then i can go up to $30,000 "margin used" on a trade?

3. what do you use ECN for?

the stop loss and take profits are pretty straight forward. automatically placing the stop loss with the trade makes life a lot easier, and the ability to move your stop loss / take profits real time by right clicking the line on the screen and dragging it to the level you want is pure gold.

as far as the platform, to be at home and able to plug yourself into real time international currency markets is a mind blowing concept. more and more platforms are being developed for warrants, forex, CFD's etc. increasing our options in where and how to trade.

thanks again tayser with props to linuxtroll

 

[tayser]

Re: Linuxtroll simple scalping

tayser, thanks heaps for this thread. there are so many trading options available i wouldn't know where to start so your info on where to go, what to play and the rules of the game has opened up a whole new avenue for me. i went straight out and bought another monitor and dual card so i can have a few charts up.

lol ****, I still don't have two monitors! You only need one chart, you truly want to 'trade naked' with LT.

The only other charting package I might occassionally look at is Metatrader 4 to see where the other JPY-san crosses are (GBP and EUR) and to see where the pivots are - otherwise, you only need oanda (I still want two screens so I can do other crap at the same time in periods where AUD/JPY has the drunken staggers).

a few questions -

1. is real life trading exactly the same as onanda fxgame? if the only difference is playing real money and everything else is identical then thats really sweet.

There's no real difference no (except on Demo you can reset your own balance ).

2. i'm still not 100% sure on margins and so on (hate that side of it), so basically i put $30,000 in their account, then i can go up to $30,000 "margin used" on a trade?

Ok, time for the prudent message here: you are doing this at your own risk! Dont go out and buy another two monitors based on what I may have to say!

Oanda have max 1:50 margin. So if you wanted to use a standard lot (100,000) on AUD/JPY, you need $2000AUD as a base for margin (EFX has 1:100 and one standard lot (100,000) only requires $1000 as a base margin).

3. what do you use ECN for?

ECN's are more likely to allow scalping - many market makers loathe it because they can't trade against you fast enough (Whereas an ECN routes your orders directly into the Interbank network (thus they charge a commission to do this) - a market maker doesn't do this).

ECN's spreads are invariably tighter, are not fixed and you can place orders inside the spread, with Market makers all you get is the bid or the ask, and they can artificially (and will do around news times) widen the spread.

the stop loss and take profits are pretty straight forward. automatically placing the stop loss with the trade makes life a lot easier, and the ability to move your stop loss / take profits real time by right clicking the line on the screen and dragging it to the level you want is pure gold.

Oanda's standard stop loss is fairly decent, trade with a stop loss, but only use it for disaster recovery - i.e I set it 16 pip (plus the 4 on AUD/JPY spread0 - or 20 - away from where I get in... if the price moves away from me by 4-6 pips I get out.

as far as the platform, to be at home and able to plug yourself into real time international currency markets is a mind blowing concept. more and more platforms are being developed for warrants, forex, CFD's etc. increasing our options in where and how to trade.

thanks again tayser with props to linuxtroll

Oanda isn't the real FX market - remember that! They're popular for this method owing to the fact that they provide 5 second charts (And they're one of the very few market makers who are ok with scalpers) - and most people use this method with an ECN for execution with the Oanda chart running in the background. As I've said earlier, you should be watching your spread on the ECN just as much as the chart because the ECN will react a hell of a lot quicker than Oanda.

Oanda for me is temporary, as soon as EFX (www.efxgroup.com) offer AUD denominated accounts, I'll be withdrawing from oanda and executing on the real interbank market.

And just to re-iterate, you're doing this at your own risk, I've been looking at this method for 2-3 months now (and been looking at forex for at least the past 6), if you're completely new to the whole leveraged instruments game (hey, I can count on one hand the amount of times I've traded a stock on the ASX ), I wouldn't even think about committing real money yet - you need to practice, observe and do your FX homework for at least 6 months or more.

A good book to read is FX Trading; http://www.moneybags.com.au/default.asp?d=0&t=1&id=5016&c=0&a=74

this will teach you what a pip is, and give you a good grounding in the jargon & very good margin examples. Well worth the buy.

 

[tayser]

Re: Linuxtroll simple scalping

Tonights trades on AUD/JPY.

had two losses, 1 a peace on EUR/JPY & AUD/USD so it was not all smooth sailing.

Tayser I am now playing on the AUD/JPY primarly as the brokerage is much lower then the EUR/JPY.

charts are of my AUD/JPY trades:

Yeah I buggarised around with all sorts of pairs when I first started. I then only stuck to Sterling/Yen and got quite comfortable with it, until I went over my pip plan for the 20,000th time and realised that you can get so much more bang for you buck for less work with a cross like AUD, CAD or NZD to the Yen.

AUD/USD and AUD/CAD might get a look in from me sometime down the track, but for now, I've exclusively AUD/JPY.

nice work on the trades, it just starts to flow really nicely after a while eh

 

[disarray]

Re: Linuxtroll simple scalping

for sure, i'll be playing the game for a while before i commit funds. monitors and cards are really cheap at the moment, about $400 for card & 22" widescreen so its a tax deductible to spend some profits

i have a 30 sec chart avg. price open to watch the current trend and a 5 second OHLC for entries and exits, but i'm probably overcomplicating like you said. but i've made some trades based on 30 sec charts that pay 30-50 pips so a wide-ish stop (with fake money admittedly ) on a 30 minute play seems to be working. 5 sec scalping is definately efficient so i'll be spending some time learning that.

the whole "trade when you feel like it" is excellent. the AUD/JPY has just broken through a major resistance / support line from jan, march and september so it looking like a plummet is on the cards, but then again its easy to predict with play money.

 

[tayser]

Re: Linuxtroll simple scalping

Holy frak.

That movement = one week's worth of pips.

the horizontal lines are 10 pips apart. Yes, the Yen is strengthening across the board, but as you can see on this chart, it's tried to go upwards, the WMAs compress (this is where Guppy-speak comes into it) - something's going to happen - the bias is downward (owing to the previous couple of hours trend), the price drops its toe in the water on the other side of the spine and holds for a few seconds above the 95.30 line, then breaks the .10 (95.30) level and breaks most recent support (to me that's saying SELL SELL SELL SELL SELL SELL) and the rest is just ... well.... gravy. Possible to have grabbed 60 pips right there.

You get out when you feel the trend goes against you or when you have pre-set targets.

My own targets are 10-12 pips, or if I can quickly get 10 pips when I first start, I'll see what I can do in a half hour timeframe (see earlier chart). After 30 minutes, you can risk over-trading and go backwards.

$0.02

 

[tayser]

Re: Linuxtroll simple scalping

lol freefalling!

the horizontal lines on that chart are now 20 pips apart.

Load that mofo up with a 10,000,000 lot from my original entry I talked about in post above and you could go on a first class round the world trip for 6 months tomorrow

(good example of how it can be used for longer-term (although still short!) trades/scalps).

 

[disarray]

Re: Linuxtroll simple scalping

i'd like to claim an "i told you so" these charts seem so pure.

 

[tayser]

Re: Linuxtroll simple scalping

lol it's yours

 

[>Apocalypto<]

Re: Linuxtroll simple scalping

I see it Tayser,

I am using another system as well as LTSS, I am short on AUD and EUR vs USD both looking good AUD broke a support area tonight. but the retraces it's making are scary. Time to turn off the prices and let it be.

all in all a good night.

News Tayser spoke to a ryan at efx today aud currency accounts will be avalibe in 2 weeks, i will go live once it's avalible.