Scalping FX with Cyrox Rainbow

[Trembling Hand]

No im not at the moment. I used to, but found it didnt really have much affect when you are only looking for a couple pip moves.

For me it all depends on setup. There is nothing wrong with going against the trend if its a good set up and you are after a couple of pips. Obviously there is more chances with the trend if its running but mostly markets don't run and run. So I wouldn't make it a hard and fast rule. Still depend mainly on the setups in you first time frame.

Not quite sure what i am doing different the last few days. I need to focus more on trades like the last one, the breaks of really strong support.

Any comments appreciated...

One thing I find a bit weird about you and Taysers results are the lack of scratch trades. I may be wrong but I cannot remember 1!! When scalping You should be looking to get to break-even and letting them do as they will. The problem with scalping is the the temptation to take small profits. This can result in going nowhere over time because of cost and the odd nasty trade. Things are a tad easier when your goal is good trading rather than profit. ie make your 1st aim of each trade be a risk free. Scalping is profitable because you are in the market catching the chance for the out-liners that make a BIG diff to your Avg winner.

30-40% of my trades are scratched.

 

[tayser]

^ this is the very thing I have come to realise in the past month or so since using real money.

On another note: Oanda's platform has changed slightly, it appears there's a just a tad more transparency in their quotes now as they refresh frequently rather than the odd 3 pip movement in a second on EUR/USD (when on an ECN it will be a smooth pip by pip movement!).

 

[prawn_86]

30-40% of my trades are scratched.

Thanks for this TH.

So you just set a stop when you get to b/e and then let it run or get stopped out? or do you use a trailing stop to lock in some profits?

 

[Trembling Hand]

Thanks for this TH.

So you just set a stop when you get to b/e and then let it run or get stopped out? or do you use a trailing stop to lock in some profits?

Its probably easier with Futures as you can set up an Auto bracket order on entry. Which I always trade with. Then I have a hot key to move the stop to BE. But even If I don't use an auto stop at BE I will manually close the trade a lot of the time.

Have a look at my keyboards hot keys. After Cancel Or Orders (top Red button) the next most warn one is the blue BE button. It gets a hammering.

I don't like stops to take profits as they are market orders you get robbed of a tick or two which really adds up scalping. So mostly I try to take myself out of most orders with a limit order but the stops are there and get hit often.

 

[prawn_86]

I have setup EFX so that there is a 10 pip trailing order, just for if the comp crashes or something, plus my buy and sell hotkeys.

However i cant set it up so that it moves the stop to b/e unfortunately, looks like im just going to have to do it manually.

 

[tayser]

With EFX: Trailing stops you can't move yourself (only the market moves it), with manual stops you effectively need to cancel the stop then re-position it that you could probably configure with hotkeys.

Actually must try something soon - Market + trail to enter, limit to exit (have used limit to exit multiple times - just without the trailing stop), I doubt the limit order will cancel the trailing stop so that would probably need to be a manual procedure AFTER your limit has executed. getting a bit complex.

 

[prawn_86]

Nice, liquid flowing market is what suits my style. Due to CC ann coming out soon. I picked up 7 pre-ann and because im boring on a fri night i will wait round after and try to get some more just to get screen time...

 

[tayser]

^ that's all you need.

 

[prawn_86]

^ that's all you need.

yeh i just sat out after the announcement. Trading straight after (10 mins)news releases is too hard, the price jumps around so much. I think you need to wait a bit for it to settle down.

For my style i need a lot of movement, so if the chart has a range greater than 20 pips it is a good indication, otherwise my trades get whipsawed too quickly...

 

[tayser]

got a scratched one for you TH

Time Order ID Message Event TIF Orig Trader ID
17:49:53 Sell Short 3000 EUR/USD @ Mkt.+Trail [+Trail 0.0010] on MBTX [expiring: 29/09/2008] (3000 traded at 1.5802) Filled GTC
17:49:55 Buy 3000 EUR/USD Trail 0.0010 on MBTX [expiring: 29/09/2008] Cancelled GTC
17:53:23 Buy 3000 EUR/USD @ Market on MBTX [expiring: 29/09/2008] (3000 traded at 1.5801) Filled GTC
18:02:17 Sell Short 3000 EUR/JPY @ Mkt.+Trail [+Trail 0.10] on MBTX [expiring: 29/09/2008] (3000 traded at 166.39) Filled GTC
18:02:20 Buy 3000 EUR/JPY Trail 0.10 on MBTX [expiring: 29/09/2008] Cancelled GTC
18:02:50 Buy 3000 EUR/JPY @ Market on MBTX [expiring: 29/09/2008] (3000 traded at 166.355) Filled GTC

I actually hit exit on .00 to get out with enough to cover commish & a little bit more but price moved too fast for me. EUR/JPY was clearly slowing down (it's fallen 150 pips since Paris open) and went into this trade only after 2-3 pips.

 

[tayser]

late entry...

Time Order ID Message Event TIF Orig Trader ID
22:17:35 Sell Short 3000 EUR/USD @ Mkt.+Trail [+Trail 0.0010] on MBTX [expiring: 29/09/2008] (3000 traded at 1.5758) Filled GTC
22:17:38 Buy 3000 EUR/USD Trail 0.0010 on MBTX [expiring: 29/09/2008] Cancelled GTC
22:24:44 Buy 3000 EUR/USD @ Market on MBTX [expiring: 29/09/2008] (3000 traded at 1.5753) Filled GTC

 

[tayser]

Back on demo temporarily - I have a new toy to play with

Time Order ID Message Event TIF Orig Trader ID
18:23:54 Buy 100000 EUR/JPY @ Mkt.+Trail [+Trail 0.10] on MBTX [expiring: 1/10/2008] (100000 traded at 168.18) Filled GTC
18:23:56 Sell 100000 EUR/JPY Trail 0.10 on MBTX [expiring: 1/10/2008] Cancelled GTC
18:26:14 Sell 100000 EUR/JPY @ Market on MBTX [expiring: 1/10/2008] (100000 traded at 168.25) Filled GTC

with the indicators, it's pretty simple really, you do need to be pretty familiar with your pair though. It's not a matter or jumping in and out with every signal however.

 

[tayser]

very high probability entry: all greens alligned & the price spikes to the nearest previous high.

Time Order ID Message Event TIF Orig Trader ID
18:40:22 Buy 100000 EUR/JPY @ Mkt.+Trail [+Trail 0.10] on MBTX [expiring: 1/10/2008] (100000 traded at 168.34) Filled GTC
18:40:24 Sell 100000 EUR/JPY Trail 0.10 on MBTX [expiring: 1/10/2008] Cancelled GTC
18:41:49 Sell 100000 EUR/JPY @ Market on MBTX [expiring: 1/10/2008] (100000 traded at 168.38) Filled GTC

 

[tayser]

Ah-HAH... it's not all easey peasey sugar squeezy:

Time Order ID Message Event TIF Orig Trader ID
18:53:47 Buy 100000 EUR/JPY @ Mkt.+Trail [+Trail 0.10] on MBTX [expiring: 1/10/2008] (100000 traded at 168.48) Filled GTC
18:53:50 Sell 100000 EUR/JPY Trail 0.10 on MBTX [expiring: 1/10/2008] Cancelled GTC
18:54:48 Sell 100000 EUR/JPY @ Market on MBTX [expiring: 1/10/2008] (100000 traded at 168.42) Filled GTC

truth be known, it was a stupid entry even if the indicators are all pointing to yes - look at where I entered and look at what I missed ( the .50 level - yah, you're being pretty naive if when you take into account the big previous move and it's a natural resistance/support level).

 

[tayser]

Initial thoughts on the indicators:

- they are an absolute god-send for filtering out all the potentially disastrous trades if you only take the high probability entries (which are when all colours are in allignment - green for long, red for short), however as my last post shows, you still need to apply other filters (like natural support/resistance for the specific pair you're trading) for your trades.
- key is to get in as soon as possible (just like when you trade it naked like I have been), indicators make it much easier - especially on high probability entries.
- they illustrate why this method is always best done in active times, they compact the info you'd normally have to glance at on other charts at higher timeframes right where you need it (near the current price) so you can make a split decision to get in early.

 

[>Apocalypto<]

Initial thoughts on the indicators:

- they are an absolute god-send for filtering out all the potentially disastrous trades if you only take the high probability entries (which are when all colours are in allignment - green for long, red for short), however as my last post shows, you still need to apply other filters (like natural support/resistance for the specific pair you're trading) for your trades.
- key is to get in as soon as possible (just like when you trade it naked like I have been), indicators make it much easier - especially on high probability entries.
- they illustrate why this method is always best done in active times, they compact the info you'd normally have to glance at on other charts at higher timeframes right where you need it (near the current price) so you can make a split decision to get in early.

do the indicators lag much on the price? I would think so as you're trading under a minute time frames.

 

[tayser]

nope.

 

[>Apocalypto<]

nope.

so you're telling me it runs in perfect harmony with the price movements.

this must be a super indicator!

 

[tayser]

Well if you post a vague question, you're going to get an equally vague answer...

^ taken 2 minutes ago - market's settled right down now. you can see how quickly the top bar responds to price movement, at a guess the middle bar is tracking some of the middle-range WMAs because it does change slower than the upper bar and the lower bar is obviously looking at much slower timeframes (it's similar to the slower group of averages I look at in a standard GMMA).

I don't know the specifics behind the indicator - only the guy who created it does - but I'm quite confident when I say, no the indicators do not 'lag' much on the price.

 

[>Apocalypto<]

Well if you post a vague question, you're going to get an equally vague answer...

Vague, I don't think it was that. did you expect a 5 page long question?

Cheers for your answer. That indicator reminds my of Heiken Ashi band level indicator I have seen operates in the same way to. Hope it can clean out the noise for u.