Scalping FX with Cyrox Rainbow

[prawn_86]

A big problem with trading often (scalping) is getting over the spread.

That's why I hate hitting the market for an entry. If you do the sums you see why it hurts so much. Lets say 10 trades a day X 200 days per year X 2 point spread = 4000 pips!!

That's why your loses are hurting. They are 2 pips bigger than they should be IMHO. And your winners at least 2 pips, I would say 4, less than they should be.

I can see exactly what your saying TH, but how can you throw a limit order in the middle of the spread?

By the time i type it out the market has moved...

 

[prawn_86]

These are the trades i need more of. The real 'HP' ones. One or two trades, get my target then stop trading for the session.

New aim is to make as few trades as possible, and get my target as quick as possible for each session, then close my charts once i have done that.

 

[tayser]

bump your zoom up (go further in) and make the width of the yellow WMAs 2px (everything is 1px atm) - you'll see the HP / normal setups a lot quicker.

 

[Trembling Hand]

I can see exactly what your saying TH, but how can you throw a limit order in the middle of the spread?

By the time i type it out the market has moved...

I don't know what broker you are using but you probably can't?

You need one click trading in the DOM to get entries that aren't "@ market"

 

[prawn_86]

I don't know what broker you are using but you probably can't?

You need one click trading in the DOM to get entries that aren't "@ market"

Nah i cant do that.

And i dont have your level of cash to throw around to get a decent broker :

 

[prawn_86]

bump your zoom up (go further in) and make the width of the yellow WMAs 2px (everything is 1px atm) - you'll see the HP / normal setups a lot quicker.

Yeh i was thinking of zooming in more. But what benefit does thicker yellows have?

 

[prawn_86]

Dunno what went wrong then, but i just totally capitulated. Couldnt get anything right and ended up losing 34 pips in a very short time frame.

Didnt stick to my rule of stopping the session if i lose circa 2% of initial account balance either.

Time to take a couple days off and re-focus, and try and work out what was so different between the first and second weeks.

Have posted detailed results in my blog:
https://www.aussiestockforums.com/forums/blog.php?u=8739


Return after 2 weeks: 1.3%

 

[tayser]

Yeh i was thinking of zooming in more. But what benefit does thicker yellows have?

It's your primary entry indicator. Remember what I said, when the yellow spine (faster yellow will bunch with the two other slower yellows and project in a new direction - see chart below) and price start moving in the same direction (whether it be after a big move (contrarian) or a strong continuation (screentime helps you spot these)) you enter. Your exit is either your target or when you see croc teeth on the chart - with more screentime and experience you learn to hold the trade longer to grab more pips.

re-post of above chart to show both kinds for the yellow spine entry style:

Trade #1 & 2 - pretty much ignore them, the first was just a rush as I'd just opened my charts, the 2nd goes against the aforementioned rules (I was trying too hard to anticipate a move back up without the conditions being met - slap on the wrist!).
Trade #3 = continuation, people have taken profit from the same move we're latching on to, by moving the pair in that small retrace I stupidly took and it starts moving back again - the trigger for me is when the price breaks the previous S/R (I just took ages to get out and then jumped back in short straight away).
Trade #4 = contrarian, yellow spine has bunched and is moving in the same direction as the price - enter. Exited on croc teeth.
Trade #5 = contrarian, entered earlier than the previous, confirmed I should hold the trade by the yellow spine again bunching up and moving in the same direction as the price once again.
Trade #6 = contrarian once again, entered on the yellow spine bunch, exited on croc teeth. One thing I've learn since this is to use the yellow spine as your exit too - once you're in, dont get out (if it feels like a big move) until the price goes through the slowest of the yellow WMAs (which would have been around 149.41-149.43 on the last trade).

recommend practising in a demo for the next couple of weeks.

 

[tayser]

Key is to wait for the pair to become active again - you'll get hundreds upon on hundreds of these yellow spine entry signals throughout your session and definitely throughout the day, you just need to learn when you take the right ones (SCREENTIME!! It hasn't stopped for me!)

So yes, Zoom in (you're too far out to see these things clearly) and give your Yellows a bit of a face lift. Changing the background to black might help too.

HTH.

 

[tayser]

 

[tayser]

 

[tayser]

 

[tayser]

 

[MS+Tradesim]

Hi guys,

I've been busy with other stuff all year and only recently have gotten back to working on a currency trading idea.

I've got about 60 trades so far, and a lot of them are irrelevant because they involved playing with trailing stop losses etc and allowing it to go against me to test the stop and so on.

But today I've started genuinely tracking the system. I have no charts yet as I was busy watching the trades but I intend to start capturing the charts and indicate the moves and when I can I hope to outline my idea. It's quite discretionary and based around simple trending using the rainbow, support/resistance and using the spread in Oanda to my advantage but executing the trades on the demo platform of Hotspot.

This is today's trades for an idea:

AUDJPY 79.213 Buy
AUDJPY 79.258 Sell +0.045
AUDJPY 79.208 Sell
AUDJPY 79.183 Buy +0.025
AUDJPY 79.24 Sell
AUDJPY 79.198 Buy +0.042
AUDJPY 79.135 Sell
AUDJPY 79.123 Buy +0.012
AUDJPY 79.13 Sell
AUDJPY 79 Buy +0.13
AUDJPY 78.35 Sell
AUDJPY 78.28 Buy +0.07
AUDJPY 78.33 Buy
AUDJPY 78.473 Sell +0.143
AUDJPY 76.688 Sell
AUDJPY 76.633 Buy +0.055
AUDJPY 76.693 Buy
AUDJPY 76.933 Sell +0.24
AUDJPY 76.958 Buy
AUDJPY 76.99 Sell +0.032
AUDJPY 77.258 Buy
AUDJPY 77.238 Sell -0.02

0.774 (77.4 pips)

Net of commission would be around 70 pips.

The last trade which was a small loss was also a mistake. I had come back to the PC from a break, saw a move and jumped it without first assesssing all factors. Now I'm not naive, so I am not pumping this idea as wildly successful. It is just coincidence, I think, that I had a good run on the day I first started to record properly. One thing that is worrying me is whether the spreads on the Hotspot demo are truly indicative of what their live platform will be like. I'm waiting for further feedback from them.

I have a second play account with Hotspot. This idea seems to work longer term too so I'm going to start running trades based on daily data in the second account and see how that pans out.

I wonder about some things. Do any of you guys have an equity stop...as an example if you lose x% you stop trading for the day, or if you have 4 losses in a row you stop trading to assess and regroup?

Anyways, I think this thread is fantastic and I've learnt tons reading it (again!) and I'm hoping I can contribute myself and give back.

 

[MS+Tradesim]

Some more from this arvo/tonite:

AUDJPY 77.638 Sell
AUDJPY 77.553 Buy +0.085
AUDJPY 77.468 Sell
AUDJPY 77.398 Buy +0.07
AUDJPY 77.223 Buy
AUDJPY 77.218 Sell -0.005
AUDJPY 77.168 Sell
AUDJPY 77.115 Buy +0.053
AUDJPY 77.02 Sell
AUDJPY 77.023 Buy -0.003
AUDJPY 77.145 Buy
AUDJPY 77.093 Sell -0.052
AUDJPY 77.045 Sell
AUDJPY 77.038 Buy +0.007
AUDJPY 76.955 Sell
AUDJPY 76.91 Buy +0.045
AUDJPY 76.803 Sell
AUDJPY 76.69 Buy +0.113
AUDJPY 76.823 Buy
AUDJPY 76.848 Sell +0.025

+0.338

Getting tired and sloppy so I'm done for the night. Total of 111 pips for the day, less comm. would be about 100 net. I'm pretty happy with that for day one of serious demo trading of my strategy. At real risk of over-trading so I need to just turn off and walk away when I'm not fresh.

 

[Trembling Hand]

I wonder about some things. Do any of you guys have an equity stop...as an example if you lose x% you stop trading for the day, or if you have 4 losses in a row you stop trading to assess and regroup?

This is a HUGE part of my system. In fact its Number 1 of only three rules.

I don't ever want to have to get back more than 1% of my capital tomorrow. So that's my daily stop.

Its is a rule that enables me to make some huge gains some times without blowing my account. As I build profit I get more aggressive. i start small and some times get stopped out. But when I'm on song I really leverage up (relatively to the days start)

 

[tayser]

What's your spread like on Hotspot TradeSim?

 

[MS+Tradesim]

TH,

Thanks for that. I was thinking similarly. I would implement an equity stop.

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tayser,

First, thanks heaps for all your great info on this thread. I've learnt a lot from you and others. I hope to give back when I can satisfy myself that what I'm doing actually works.

The spread seems to be consistently around 0.5 pip which doesn't seem realistic to me. Though I've seen anywhere from 1-5 pips across the majors. I've asked them for feedback as I don't want to waste time on an idea that may not be realistic.

I did find a copy of their live spread statistics somewhere on their site and if I find it again I'll post it.

 

[MS+Tradesim]

Found it, although annoyingly, it doesn't have AUDJPY which is the only one I've been focusing on so far.

http://www.hotspotfx.com/pdf_forms/spreadstats-aug2008.pdf

Based on this, I'm not confident the live platform would consistently offer 0.5 pip spreads on the AUDJPY.

 

[MS+Tradesim]

Tayser, that reminds me. Are you still with EFX? How did your find their demo compared to their live?