Scalping FX with Cyrox Rainbow

[tayser]

Entry could have been earlier - was looking for confirmation it would breakout from the range and hit a high spot on the spread unfortunately.

Time Order ID Message Event TIF Orig Trader ID
18:38:05 0xr092s:0gzi-00 Buy 100000 GBP/JPY @ Market on MBTX [expiring: 29/07/2008] (100000 traded at 206.57) Filled GTC
18:41:10 0xr092s:0hdx-00 Sell 100000 GBP/JPY @ Market on MBTX [expiring: 29/07/2008] (100000 traded at 206.64) Filled GTC

 

[metalhead]

Are you live yet?

 

[tayser]

No. New financial year I will be.

 

[tayser]

Merci beaucoup Paris! Danke Schön Frankfurt! Grazie Milano! smack bang on time the euros decided to short GBP/JPY I used a Stop + Market order to get in here (placed it underneath the short-term range it was trading in) and just exited as soon as I saw the quotes go ballistic in navigator lol

Time Order ID Message Event TIF Orig Trader ID
15:50:27 0xs002s:027j-00 Sell Short 100000 GBP/JPY Stop 204.17 Market on MBTX [expiring: 30/07/2008] (100000 traded at 204.17) Filled GTC
15:51:18 0xs002s:0283-00 Buy 100000 GBP/JPY Stop 204.45 Market on MBTX [expiring: 30/07/2008] Cancelled GTC
16:00:04 0xs002s:02gv-00 Buy 100000 GBP/JPY @ Market on MBTX [expiring: 30/07/2008] (100000 traded at 204.03) Filled GTC

Long live the GMMA (you can clearly make out which direction you should be trading in)!

 

[tayser]

Interesting ride. Ended this little session pip negative, but cash positive... Guess tihs points out I still can't accurately tell when a pair is trading in a range (but I properly picked the breakout!). Chopped to shizzle here with a combo of the spread and not taking the contrarian trades:

However, it breached the upper range, pulled back - importantly made a higher low, jacked up the lots to 80% (we've got confirmation of a high probability entry with the breach) and jumped in as soon as price poked above the spine and I went for a ride...

easier to see the range breakout here:

Time Order ID Message Event TIF Orig Trader ID
16:59:21 0xt002s:06b1-00 Buy 100000 GBP/JPY @ Market on MBTX [expiring: 31/07/2008] (100000 traded at 206.22) Filled GTC
17:02:12 0xt002s:06en-00 Sell 100000 GBP/JPY @ Market on MBTX [expiring: 31/07/2008] (100000 traded at 206.244) Filled GTC
17:07:41 0xt002s:06qo-00 Buy 100000 GBP/JPY @ Market on MBTX [expiring: 31/07/2008] (100000 traded at 206.19) Filled GTC
17:08:15 0xt002s:06se-00 Sell 100000 GBP/JPY @ Market on MBTX [expiring: 31/07/2008] (100000 traded at 206.10) Filled GTC
17:08:52 0xt002s:06ui-00 Sell Short 100000 GBP/JPY @ Market on MBTX [expiring: 31/07/2008] (100000 traded at 206.05) Filled GTC
17:10:51 0xt002s:06zs-00 Buy 100000 GBP/JPY @ Market on MBTX [expiring: 31/07/2008] (100000 traded at 206.16) Filled GTC
17:12:41 0xt002s:076a-00 Buy 100000 GBP/JPY @ Market on MBTX [expiring: 31/07/2008] (100000 traded at 206.08) Filled GTC
17:14:56 0xt002s:07iu-00 Sell 100000 GBP/JPY @ Market on MBTX [expiring: 31/07/2008] (100000 traded at 206.15) Filled GTC
17:25:37 0xt002s:08ev-00 Buy 400000 GBP/JPY @ Market on MBTX [expiring: 31/07/2008] (400000 traded at 206.20542) Filled GTC
17:27:04 0xt002s:0941-00 Sell 400000 GBP/JPY @ 206.40 Limit on MBTX [expiring: 31/07/2008] (400000 traded at 206.41) Filled GTC

no more trades as I'm pip negative irrespective whether or not I've made a nice little profit.

 

[tayser]

What that breakout I caught a ride on turned out to be... a pip machine:

(red resistance line is one I've drawn from a 1 hour chart). This method doesn't have to be used exclusively for scalping - it is based on Guppy theory after all - eh combo the entry on rainbow with the above chart et voila!

 

[disarray]

hey man, a few questions please. what is that other chart package you are using, metatrader? i quite like candle charts but i'm having trouble with it in ninjatrader. and is GMMA the guppy MA?

cheers

 

[tayser]

The pivots are from the TrendFollower System (got it from ForexFactory) and the template + GMMA is mine.

Put the Pivot Points Multitimeframe.ex4 file in your MetaTrader 4 > experts > indicators folder and put the gmma with pivots.tpl file in your MetaTrader 4 > templates folder.

Restart MetaTrader 4 then open your currency pair, right click the chart and select Templates > GMMA with Pivots and all should be nice and rosy.

I usually just watch the M1 chart of the pair I'm scalping.

Files are located on my own webspace, right click Save As the links above.

yep GMMA = Guppy Multiple Moving Average (from the Trend Trading book). The template has the bog-standard settings on... Short-term EMAS: 1,3,5,8,10,12,15. Long-term EMAS: 30,35,40,45,50,60.

cheers.

 

[Andy_aus]

Hey tayser whats wrong with ninja traders pivot indicators?
Is the one you got from ff and running on MT4 better?

 

[tayser]

I've just never bothered to look at Ninja's pivots to be honest

 

[tayser]

Big pip night tonight... US Unemployment / NFP @ 10:30pm AEST. GBP/JPY usually ranges really nicely after the initial bursts (as does... well......... everything lol ). Remember, scalp AFTER the initial move has run its course, don't newstrade!

 

[tayser]

meh, all orders are taking 5 seconds to change from "Pending" to "Live" on the EFX demo tonight... even the limit order I used to exit took 4 seconds to execute, lucky price didn't move all over the place...

Time Order ID Message Event TIF Orig Trader ID
21:15:05 0xu052s:0imm-00 Buy 150000 EUR/USD @ Market on MBTX [expiring: 1/08/2008] (150000 traded at 1.5456) Filled GTC
21:18:13 0xu052s:0ir1-00 Sell 150000 EUR/USD @ 1.5463 Limit on MBTX [expiring: 1/08/2008] (150000 traded at 1.54631) Filled GTC

^ I took an aggressive entry as soon as price poked above the previous high (EUR/USD goes to the tenth a lot and ninja charts don't show it). A more conservative entry would have been as soon as the price poked above the spine after the last higher low on the right of the chart. Newbies should practice looking for this and it's all the more easier if you've got a separate chart which displays the pivots (see above). There's a weekly support at 1.5449 and the .50 level is a natural support level anyhow.

 

[tayser]

Time Order ID Message Event TIF Orig Trader ID
22:36:21 0xu052s:0qhd-00 Buy 100000 GBP/JPY @ Market on MBTX [expiring: 1/08/2008] (100000 traded at 208.67) Filled GTC
22:36:49 0xu052s:0qtv-00 Sell 100000 GBP/JPY @ Market on MBTX [expiring: 1/08/2008] (100000 traded at 208.78) Filled GTC

 

[roland]

Hey tayser, are you averaging a profit yet? I find that the commission is a real killer. Increasing the lot size makes the situation worse. The smallest lot size seems to work the best, but the return is very small. I f I try hard enough, I can consistantly return around $30 - $50 a day but this takes around 3 hours.

Is this the sort of returns you are getting - or am I doing something wrong?

 

[tayser]

If commission is killing you then you're not getting enough pips and that can be caused by not waiting / identifying the big(ger) moves.

I've got a 9% return on one demo account (used for USD based pair scalps) and 18% return on another (used for JPY based pair scalps) since last balance reset two weeks ago. I'm only using lot sizes which are 25% of the available buying power - with some exceptions (like the one I've put up here a few posts back on GBP/JPY where I jacked it up to 75-80%).

 

[HRL]

I trade with CMC and they don't have any commissions on FX trades (http://www.sitm.com.au/pgtemplate.asp?page=brokers&brokers=cmc&sub=1) so I don't need to worry too much about the spread or the direction. 20pips either way and I'm happy. If you don't mind trading on margin (ALWAYS USE A STOP LOSS!!!) and going short or long then get into it. Haven't traded any other live data programs before but CMC's live feed and charting suite is pretty good.

I've been scanning through this thread just now and nodding my head in agreement with most of it... scalping suits me best also as I can catch the Asian markets close and the European open most days (& some US action if I'm having trouble sleeping or theres a game on!). I generally stick to the major spots (USD,EUR,GBP,JPY,CHF and AUD sometimes too) for liquidity reasons.

 

[tayser]

CMC are a bucketshop (their platform's even called "Market Maker"!) and no you shouldn't have to always set a platform-side stop loss for the method - your stop loss is in your head and you execute it as soon as the trigger occurs.

Paying commissions with floating and narrowed spreads with far more order options and trading with banks and other traders is far more favourable than trading against a broker with limited order options. If you're going to look at this method, I highly recommend training yourself from the start on an ECN - EFX/MB Trading is the broker that suits most beginners.

 

[HRL]

Few questions Tayser if you don't mind...

Limited order options? Market, Stops, Limits and OCOs are enough for me for the moment. I'm still fairly new to FX. What else are you getting with yours?

If I'm getting a fixed spread of 2-3pips and no commissions then why move to a commission platform with floating spreads? Whats the narrowest spread you get and how regular is it? What commissions are you paying?

Why would I care about whether I'm 'only' trading with a broker rather than banks and other traders if all my trades have been filled within seconds of placing the order? What's the benefit?

Don't need to use a stop loss? Huh? Ok now I'm suspicious. So if you have a couple of positions open (on margin or not) and you duck out to the toilet when suddenly one or both quickly turn against you while you're still on the crapper - then what? You happily take the hit?

Your response above was a bit brief. I'm fine with you saying 'this is better than that' but at least give me some facts to back it up.

Thanks

 

[Trembling Hand]

Few questions Tayser if you don't mind...

Limited order options? Market, Stops, Limits and OCOs are enough for me for the moment. I'm still fairly new to FX. What else are you getting with yours?

If I'm getting a fixed spread of 2-3pips and no commissions then why move to a commission platform with floating spreads? Whats the narrowest spread you get and how regular is it? What commissions are you paying?

Why would I care about whether I'm 'only' trading with a broker rather than banks and other traders if all my trades have been filled within seconds of placing the order? What's the benefit?

Don't need to use a stop loss? Huh? Ok now I'm suspicious. So if you have a couple of positions open (on margin or not) and you duck out to the toilet when suddenly one or both quickly turn against you while you're still on the crapper - then what? You happily take the hit?

Your response above was a bit brief. I'm fine with you saying 'this is better than that' but at least give me some facts to back it up.

Thanks

HRL why do you think that CMC gives you "free" trades??

Are they philanthropic organizations?

 

[HRL]

Is your mouse finger broken? Read the link I put in my post above or go to their website.