Scalping FX with Cyrox Rainbow

[BentRod]

Re: Linuxtroll simple scalping

Are you going to trial this system trade it?

Did you end up going with EFX or IB?

 

[tayser]

Re: Linuxtroll simple scalping

Geez is that all, I thought Forex required a larger outlay.

You need less capital than you would on equities - because 1:100 leverage is readily available at many brokers!

EFX only offer 1:100.

 

[hissho]

Re: Linuxtroll simple scalping

So in 13 weeks you went from $1000 to over $100K? that's really impressive. was that real money or just trading records from you demo account?

one more thing: you said it suits our local time, starting from 7pm-ish. how many hours do you normally trade?

cheers
hissho

 

[tayser]

Re: Linuxtroll simple scalping

That's a plan which shows you how doing the same thing every day but compounding your profits makes your account balance grow exponentially (until you hit the ceiling with your broker - which will be around $150,000 @ 1:100 when trading AUD/JPY), it's not a trading log.

I'm still demoing.

Attaching the pip plan once more (I've added fixed % and floating % since first uploading it).

 

[nizar]

Re: Linuxtroll simple scalping

Yes, this method is not mechanical like the vast majority of systems people find comfort in and you have to unlearn a lot of what you may already have done trading another instrument, but to be scared of 1:100 leverage is foolish IMO.

Yet leverage has a point of diminishing returns, says Todd Crosland, chief executive officer of Interbank FX. By analyzing trends among Interbank's some 10,000 accounts, he noticed "the good money managers who trade with us and make money in this market just use a little bit of leverage, like 5-to-1," he says.

http://powerswings.com/wp-documents/WSJ.20061028.currencytrading.html

There are a lot of EA's out there that you can install on MT4, read about it one day and start trading it live the next day - you don't have to think or really work - but this isn't one of them.

Ah yes.
I have seen these systems posted all over the internet, for free, or even on ebay, for a small price of $59.95!!!

I think this is a bit of a joke, and really brings down the reputation of trading as a serious profession.

Isn't it amazing how people think trading can be so easy??

Trading is not supposed to be easy, yet some people think you can just download an EA, buy an ebay system that makes $1million per day for only $59.95!! or scab someone's system from collective2, but the result will be, you will just become like the 90-95%.

And that's why Iv discounted MT4. Firstly it only works with market makers, and secondly, its free. Not only the software is free but so are the systems!!

With programs such as NeoTicker, I haven't seen not even one "free" system. That tells me something.

I know of and have heard of several traders who have done very well, none of them have traded somebody elses system or did it the easy way.

 

[nizar]

Re: Linuxtroll simple scalping

That's a plan which shows you how doing the same thing every day but compounding your profits makes your account balance grow exponentially (until you hit the ceiling with your broker - which will be around $150,000 @ 1:100 when trading AUD/JPY), it's not a trading log.

I'm still demoing.

Attaching the pip plan once more (I've added fixed % and floating % since first uploading it).

All the best with your plan.
Its very ambitious. And maybe that's why I like it so much.

Except when I have my own plans I'm often reminded about the story of the glass jars.

It was in the Arab world thousands of years ago.
A poor man suddenly had an idea. He could buy jars from a far away village for a cheap price and sell them in the city for a handsome profit. Then repeat until he was rich. In the beginning he didn't have much money, So he started off with one jar. At the end of the first month he had several (lets say 30, but details arent important). And one day he was sitting in his house with all his jars, and thinking/dreaming to himself.

I've made a (relative) fortune in such a short time. Hmmm, so what next. Ok, after I sell these jars, I have enough money to move into Pottery. I'll do that for a while and then I'll have enough to move into the horses business. And after the horses, I will buy land and property. And then I will.....

And in his excitement, he jumped up from his chair, and he knocked the glass jars, and they all smashed into pieces.

The moral of the story: Take it one step at a time

Not saying at all that this applies to you, but it applies to me almost everyday! LOL

 

[tayser]

Re: Linuxtroll simple scalping

It applied to me 3-4 months ago

One step at a time = start with a small target and achieve it every day for a few weeks, then double the target, achieve that for a few weeks then double again (I eventually want to aim for 20 pips a day (only looking for 5 for next few weeks) - put 100 in the target profit per week @ 80% account balance usage and start with $1000 in the above spreadsheet - that's what I'm aiming to start live with after a few more months of demoing and nailing the progressive targets)

When you have $200,000 and using 80%, 15,000,000-18,000,000 lot sizes - from what I've seen of EFX's level II - this is about the ceiling you'll hit before you start soaking up liquidity either side of the market price you want... but eh, I can live with $1500 pips

 

[julius]

Re: Linuxtroll simple scalping

http://powerswings.com/wp-documents/WSJ.20061028.currencytrading.html

Ah yes.
I have seen these systems posted all over the internet, for free, or even on ebay, for a small price of $59.95!!!

I think this is a bit of a joke, and really brings down the reputation of trading as a serious profession.

Isn't it amazing how people think trading can be so easy??

Trading is not supposed to be easy, yet some people think you can just download an EA, buy an ebay system that makes $1million per day for only $59.95!! or scab someone's system from collective2, but the result will be, you will just become like the 90-95%.

And that's why Iv discounted MT4. Firstly it only works with market makers, and secondly, its free. Not only the software is free but so are the systems!!

With programs such as NeoTicker, I haven't seen not even one "free" system. That tells me something.

I know of and have heard of several traders who have done very well, none of them have traded somebody elses system or did it the easy way.

- Scalping IS the domain of the small lot trader.

- Leverage does have 'diminishing returns' with respect to scalping, for obvious reasons.

- Learn to love the ebay systems - trading is a zero sum game

- I'd like to see a mechanical forex system which generates statistically significant profits. I've been through all the finance journals and found nothing substantial net of transaction costs.

- Don't think of risk in terms of position size.

 

[tayser]

Re: Linuxtroll simple scalping

Making me work tonight... after an 'ok' first trade (ran away from PC to turn oven off! lol), hit a mullet of a trade and have been taking very small trades just to claw back into profit (4 pips up over friday). Too many charts to post - the first and the mullet.

Time Order ID Message Event TIF Orig Trader ID
17:51:43 0v0002s:05l8-00 Sell Short 1000000 AUD/JPY @ Market on MBTX [expiring: 21/04/2008] (1000000 traded at 92.98008) Filled GTC DEMO****
17:52:44 0v0002s:05mo-00 Buy 1000000 AUD/JPY @ Market on MBTX [expiring: 21/04/2008] (1000000 traded at 92.95) Filled GTC DEMO****
18:36:21 0v0002s:071t-00 Sell Short 1000000 AUD/JPY @ Market on MBTX [expiring: 21/04/2008] (1000000 traded at 92.78) Filled GTC DEMO****
18:37:40 0v0002s:073q-00 Buy 1000000 AUD/JPY @ Market on MBTX [expiring: 21/04/2008] (1000000 traded at 92.82) Filled GTC DEMO****
18:55:06 0v0002s:07v3-00 Sell Short 1000000 AUD/JPY @ Market on MBTX [expiring: 21/04/2008] (1000000 traded at 92.82) Filled GTC DEMO****
19:03:02 0v0002s:088v-00 Buy 1000000 AUD/JPY @ Market on MBTX [expiring: 21/04/2008] (1000000 traded at 92.79) Filled GTC DEMO****
19:04:02 0v0002s:08aa-00 Sell Short 1000000 AUD/JPY @ Market on MBTX [expiring: 21/04/2008] (1000000 traded at 92.79) Filled GTC DEMO****
19:12:55 0v0002s:08ne-00 Buy 1000000 AUD/JPY @ Market on MBTX [expiring: 21/04/2008] (1000000 traded at 92.77) Filled GTC DEMO****
19:14:30 0v0002s:08rm-00 Sell Short 1000000 AUD/JPY @ Market on MBTX [expiring: 21/04/2008] (1000000 traded at 92.71) Filled GTC DEMO****
19:15:24 0v0002s:08u3-00 Buy 1000000 AUD/JPY @ Market on MBTX [expiring: 21/04/2008] (1000000 traded at 92.68) Filled GTC DEMO****
19:26:35 0v0002s:09r5-00 Sell Short 1000000 AUD/JPY @ Market on MBTX [expiring: 21/04/2008] (1000000 traded at 92.42) Filled GTC DEMO****
19:40:18 0v0002s:0ah6-00 Buy 1000000 AUD/JPY @ Market on MBTX [expiring: 21/04/2008] (1000000 traded at 92.39) Filled GTC DEMO****

^ held on for 14 minutes for the last trade - *slaps self on wrist*

Totals
3(2) -4(-5) 3(2) 2(1) 3(2) 3(2)
Ex commish: 10
including commish: 4

EFX is going to make a packet when the market makes me work! hah.

 

[tayser]

Re: Linuxtroll simple scalping

After spending the morning watching the Cyrox shoutbox and everyone else trade, I finally got to get a piece of the action

Sold short on big break of support - held on (was following the 5sec oanda chart for overall direction) and got out on target.

Time Order ID Message Event TIF Orig Trader ID
17:25:57 0v1002s:03f0-00 Sell Short 1000000 AUD/JPY @ Market on MBTX [expiring: 22/04/2008] (1000000 traded at 90.93) Filled GTC DEMO****
17:30:26 0v1002s:03jc-00 Buy 1000000 AUD/JPY @ Market on MBTX [expiring: 22/04/2008] (1000000 traded at 90.87) Filled GTC DEMO****

Might look for a further 5 sometime later tonight.

 

[tayser]

Re: Linuxtroll simple scalping

grabbed a few more, entered on break of resistance.... I really need to focus on exits as it moved all the way to 91.15! YARGH.

Time Order ID Message Event TIF Orig Trader ID
19:23:18 0v1002s:09ju-00 Buy 1050000 AUD/JPY @ Market on MBTX [expiring: 22/04/2008] (1050000 traded at 90.61) Filled GTC DEMO****
19:24:02 0v1002s:09lu-00 Sell 1050000 AUD/JPY @ Market on MBTX [expiring: 22/04/2008] (1050000 traded at 90.64) Filled GTC DEMO****

 

[tayser]

Re: Linuxtroll simple scalping

Pip. Machine.

(happened while I was doing the above post hah )

 

[tayser]

Re: Linuxtroll simple scalping

Just updating the Pip Plan spreadsheet. I fixed the leverage calculation in version 5 (i suck at maths and excel, but like most things - scalping included - if you plod away at it, you'll eventually get there) - previously only calculated properly with 1:100. Will work with whatever you put in the leverage box now.

Cheers.

 

[>Apocalypto<]

Re: Linuxtroll simple scalping

grabbed a few more, entered on break of resistance.... I really need to focus on exits as it moved all the way to 91.15! YARGH.

maybe try running a trailing stop Tayser,

 

[tayser]

Re: Linuxtroll simple scalping

Problem is, I'd want to set it pretty tight ( <10 pips), but 10 pips is the end of my tolerance threshold for drawndown and the likelihood of the stop being hit prematurely is pretty high...

catch-22.

I'm just really jumpy once I've got a good entry - I want to get out as fast as I can with a profit... I need to do many more trades and get more comfortable with using the rainbow to exit as well as enter. I want to trade as 'naked' as possible just using what I see in the rainbow.

 

[tayser]

Re: Linuxtroll simple scalping

Silly first entry - got out by reversing the position to break even - EFX's spread turned to **** too.

Time Order ID Message Event TIF Orig Trader ID
07:12:31 0v1002s:1obk-00 Sell Short 1100000 AUD/JPY @ Market on MBTX [expiring: 22/04/2008] (1100000 traded at 92.51) Filled GTC DEMO****
07:18:32 0v1002s:1op9-00 Buy 1100000 AUD/JPY @ Market on MBTX [expiring: 22/04/2008] (1100000 traded at 92.57) Filled GTC DEMO****
07:18:34 0v1002s:1oph-00 Buy 1100000 AUD/JPY @ Market on MBTX [expiring: 22/04/2008] (1100000 traded at 92.57) Filled GTC DEMO****
07:22:40 0v1002s:1ovk-00 Sell 1100000 AUD/JPY @ Market on MBTX [expiring: 22/04/2008] (1100000 traded at 92.65) Filled GTC DEMO****

 

[tayser]

Re: Linuxtroll simple scalping

Must. Trust. Rainbow.

Entry wasn't too bad (break of previous resistance) but just too jumpy as usual (last trade from orderbook extract)...

Time Order ID Message Event TIF Orig Trader ID
18:06:13 0v3012s:03qf-00 Sell Short 1200000 AUD/JPY @ Market on MBTX [expiring: 24/04/2008] (1200000 traded at 92.70) Filled GTC DEMO****
18:06:22 0v3012s:03rs-00 Buy 1200000 AUD/JPY @ Market on MBTX [expiring: 24/04/2008] (1200000 traded at 92.67) Filled GTC DEMO****
18:15:50 0v3012s:0483-00 Buy 1200000 AUD/JPY @ Market on MBTX [expiring: 24/04/2008] (1200000 traded at 92.76) Filled GTC DEMO****
18:16:32 0v3012s:049a-00 Sell 1200000 AUD/JPY @ Market on MBTX [expiring: 24/04/2008] (1200000 traded at 92.78) Filled GTC DEMO****

On the flipside, although I'm only grabbing tiny amouns of pips - my account balance is still very handsome... started with $10k when EFX reset the balance on the 15th of each month, currently $13,841 (I'm using 80% of account balance in each trade and rounding to the nearest 10,000).

 

[BentRod]

Re: Linuxtroll simple scalping

How much are you actually risking for each trade?

What is your average loss?

 

[tayser]

Re: Linuxtroll simple scalping

If it moves 5-6 pips against me: I'm out. That's my position 'risk'.

I'm being extremely conservative (so much so that my exits are only a few pips after they're in profit) and only entering on high probability entries (breaks of major support / resistance) etc.

You can see my losses above.

cheers.

 

[nizar]

Re: Linuxtroll simple scalping

On the flipside, although I'm only grabbing tiny amouns of pips - my account balance is still very handsome... started with $10k when EFX reset the balance on the 15th of each month, currently $13,841 (I'm using 80% of account balance in each trade and rounding to the nearest 10,000).

Very handsome.
Seems like a decent method.