Scalping FX with Cyrox Rainbow

[tayser]

Re: Linuxtroll simple scalping

I'm on annual leave this week and will be dabbling with the EUR/JPY this week - looking for roughly 5-10 pips in both the Asian and European opens.

Time Order ID Message Event TIF Orig Trader ID
11:38:31 0v6002s:088x-00 Sell Short 730000 EUR/JPY @ Market on MBTX [expiring: 27/04/2008] (730000 traded at 156.72) Filled GTC DEMO****
11:39:12 0v6002s:08cg-00 Buy 730000 EUR/JPY @ Market on MBTX [expiring: 27/04/2008] (730000 traded at 156.67) Filled GTC DEMO****

Done for Monday's Asian opens.

 

[tayser]

Re: Linuxtroll simple scalping

It's all fun and games until someone loses an eye! Aiee, a lot of false starts (I kept getting out after one pip in profit, forgetting that EUR/JPY commission of EFX is about 1.5 pips... commission for this session is huge!) Positive in pips however...

two main nice movements I caught.

Watching the Level II on this one, it kept butting its head on the BID @ 156.09, took a position with my finger hovering very close over my close all hot key in case it went pear shaped.

Break of the 156.34 resistance and got out on the my standard AUD/JPY target of 6 pips... lucky. I've forgotten how much more liquid EUR/JPY is compared to AUD/JPY...

lol check this out:

Time Order ID Message Event TIF Orig Trader ID
18:45:34 0v70h2s:04pg-00 Sell 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 156.421) Filled GTC DEMO****
18:45:18 0v70h2s:04p0-00 Buy 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 156.36) Filled GTC DEMO****
18:43:03 0v70h2s:04n7-00 Sell 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 156.32) Filled GTC DEMO****
18:42:13 0v70h2s:04ma-00 Buy 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 156.29) Filled GTC DEMO****
18:40:15 0v70h2s:04l2-00 Buy 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 156.23) Filled GTC DEMO****
18:38:58 0v70h2s:04k7-00 Sell Short 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 156.25) Filled GTC DEMO****
18:37:56 0v70h2s:04iw-00 Buy 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 156.19) Filled GTC DEMO****
18:36:25 0v70h2s:04he-00 Sell Short 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 156.20) Filled GTC DEMO****
18:35:47 0v70h2s:04gr-00 Buy 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 156.24) Filled GTC DEMO****
18:34:59 0v70h2s:04eu-00 Sell Short 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 156.25) Filled GTC DEMO****
18:28:36 0v70h2s:040s-00 Sell 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 156.18) Filled GTC DEMO****
18:26:36 0v70h2s:03wu-00 Buy 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 156.09) Filled GTC DEMO****
18:21:28 0v70h2s:03rl-00 Sell 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 156.00) Filled GTC DEMO****
18:18:41 0v70h2s:03n9-00 Buy 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 155.99) Filled GTC DEMO****
18:17:38 0v70h2s:03m3-00 Sell 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 155.97) Filled GTC DEMO****
18:16:35 0v70h2s:03ld-00 Buy 740000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (740000 traded at 156.01) Filled GTC DEMO****
18:15:37 0v70h2s:03jm-00 Buy 10000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (10000 traded at 156.01) Filled GTC DEMO****

 

[>Apocalypto<]

Re: Linuxtroll simple scalping

Looks like u found your thing brother! I have been watching your progress for a while now tayser, all I can say is well done.

Quoting the the Tman "make it yours!"

 

[tayser]

Re: Linuxtroll simple scalping

crazy ****e on NY open...

lol.... can I have a "weee"?

Time Order ID Message Event TIF Orig Trader ID
00:00:45 0v70h2s:0dij-00 Buy 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 156.9904) Filled GTC DEMO****
000:01:34 0v70h2s:0dkb-00 Sell 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 157.09) Filled GTC DEMO****
00:02:25 0v70h2s:0dn7-00 Buy 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 157.17) Filled GTC DEMO****
00:02:40 0v70h2s:0dq5-00 Sell 750000 EUR/JPY @ Market on MBTX [expiring: 28/04/2008] (750000 traded at 157.40) Filled GTC DEMO****

all three sessions, haven't even counted up the total pippage. I know my demo account balance is a good $1500 healthier...

 

[tayser]

Re: Linuxtroll simple scalping

Euro not giving me much love this morning, grabbed 2 on old faithful - trend reversal (headed back towards the .00 level as it invariably does).

Time Order ID Message Event TIF Orig Trader ID
10:25:04 0v70h2s:1did-00 Buy 1330000 AUD/JPY @ Market on MBTX [expiring: 28/04/2008] (1330000 traded at 94.92) Filled GTC DEMO****
10:25:25 0v70h2s:1djl-00 Sell 1330000 AUD/JPY @ Market on MBTX [expiring: 28/04/2008] (1330000 traded at 94.95) Filled GTC DEMO****

 

[nizar]

Re: Linuxtroll simple scalping

Tayser,

10 pips then another 25.
Well done brother, keep up the good work.

How long before you go live?

(I guess thats dependant on when AUD-denominated accounts are available)/

But overall...Have you been happy with EFX?

Im really enjoying this thread by the way.

 

[tayser]

Re: Linuxtroll simple scalping

Yeah dependent on AUD accounts and I want to have another two demo months. I'm well on track to double the account balance this month (balance reset on 15th each month) - from March 15th to April 15th I want to triple/quadruple it.

Interesting European session today, less commission as I'm getting a little more comfortable with the Euro, just showing last chart:

Sold a little early, anticipating downward movement, kept going all the way down to .27.

course of trades this afternoon:

Time Order ID Message Event TIF Orig Trader ID
17:14:02 0v8012s:02h5-00 Buy 810000 EUR/JPY @ Market on MBTX [expiring: 29/04/2008] (810000 traded at 157.629) Filled GTC DEMO****
17:14:25 0v8012s:02j0-00 Sell 810000 EUR/JPY @ Market on MBTX [expiring: 29/04/2008] (810000 traded at 157.67) Filled GTC DEMO****
17:30:51 0v8012s:034c-00 Buy 810000 EUR/JPY @ Market on MBTX [expiring: 29/04/2008] (810000 traded at 157.85) Filled GTC DEMO****
17:30:59 0v8012s:0352-00 Sell 810000 EUR/JPY @ Market on MBTX [expiring: 29/04/2008] (810000 traded at 157.89) Filled GTC DEMO****
17:54:22 0v8012s:03sq-00 Buy 810000 EUR/JPY @ Market on MBTX [expiring: 29/04/2008] (810000 traded at 157.849) Filled GTC DEMO****
17:56:42 0v8012s:03uw-00 Sell 810000 EUR/JPY @ Market on MBTX [expiring: 29/04/2008] (810000 traded at 157.83) Filled GTC DEMO****
18:02:37 0v8012s:041d-00 Sell Short 810000 EUR/JPY @ Market on MBTX [expiring: 29/04/2008] (810000 traded at 157.76) Filled GTC DEMO****
18:04:12 0v8012s:045b-00 Buy 810000 EUR/JPY @ Market on MBTX [expiring: 29/04/2008] (810000 traded at 157.70) Filled GTC DEMO****
18:21:46 0v8012s:04ug-00 Sell Short 810000 EUR/JPY @ Market on MBTX [expiring: 29/04/2008] (810000 traded at 157.60) Filled GTC DEMO****
18:22:01 0v8012s:04vf-00 Buy 810000 EUR/JPY @ Market on MBTX [expiring: 29/04/2008] (810000 traded at 157.57) Filled GTC DEMO****
19:05:00 0v8012s:06py-00 Sell Short 810000 EUR/JPY @ Market on MBTX [expiring: 29/04/2008] (810000 traded at 157.47) Filled GTC DEMO****
19:05:59 0v8012s:06sy-00 Buy 810000 EUR/JPY @ Market on MBTX [expiring: 29/04/2008] (810000 traded at 157.37) Filled GTC DEMO****

4 (2.5), 4 (2.5), -1.5 (-3), 6 (4.5), 3 (1.5), 10 (8.5)
25.5 gross
16 net.

current return on EFX demo account 63% after 10 trading days.

 

[nizar]

Re: Linuxtroll simple scalping

Tayser,

So EUR/JPY spread was under 1 pip for these trades?

Total costs per trade, meaning spread*2 + commission*2 was 1.5 pips?

Thats pretty tight spreads then, especially on a cross.
Nice, i like.

 

[tayser]

Re: Linuxtroll simple scalping

decided to answer these questions asked of me in a PM for all to see (as I've been getting the same sort of questions!)

Firstly, I understand about setting up 1 second ticks and multiple WMA's. However, what I still don't understand is what are your indicators to enter a trade?

It can be a mix of things - price lines crossing the spine on a slower chart or recognising micro-patterns as their forming on a tick chart and taking the appropriate action. Head and Shoulders, lower highs, higher highs, lower lows, higher lows - it all comes from sitting and watching, memorising patterns (because they frequently occur!) and just slowly practising executing.

I'm pretty much only using tick charts to trade from now, but I still run the OAnda 5-sec chart on the side to confirm directions (And the crossovers).

do you wait until you see a solid trend forming, then jumping in and scalp a few points?

Trading/scalping with the trend is the easiest way to do it - after a fair bit of screentime watching tick charts you will start to see patterns emerge and you'll get a 'hunch' when the big moves start - wait til they do start (look for the break of significant support/resistance - then enter), use only a small target when you first start (I still only use small targets!) and attempt to get a few pips beyond profit+commission and repeat every day.

When you move to a more advanced level you'll start scalping inside the sideways movements (you can do it on pairs which have 0-1 spreads like USD/JPY, EUR/USD, AUD/USD etc).

this scalping method is looking like it has the potential to replace my day job?

that's the idea! and that's what I'm aiming for!

Keep targets realistic

Absolutely, as I said before, at more advanced levels, you'll use the method to grab 50pips in one go! That's a long way off for me and it won't be done with 80% of my account balance (what I'm doing with small targets)

and tight stop losses...

your stop loss should be mental - set a 'disaster recovery' stop about 20pips away by all means, but get out when you're 4-5 pips, don't wait for any platform-set stop to be hit.

Where can I get more information on the indicators rather than the setup of the WMA?

That's the thing, it's pretty close to 'naked' trading, I'm finding it's more about pattern recognition and feeling which way the market is going to move (you'll start 'feeling it' D) after a few months of screen time). Some people on the Cyrox forum (and you'll see them talking about it in the shoutbox) are applying stochs - I'm not an indicator person & can't really help there sorry.

When you're on training wheels, just look at EUR/JPY from Paris/Frankfurt open to half an hour after London open (6:00pm - 7:30pm in AEDT). Just sit and watch for a week and mentally tell yourself when you're getting in and out, thereafter execute on a platform.

 

[tayser]

Re: Linuxtroll simple scalping

Tayser,

So EUR/JPY spread was under 1 pip for these trades?

Total costs per trade, meaning spread*2 + commission*2 was 1.5 pips?

Thats pretty tight spreads then, especially on a cross.
Nice, i like.

The spread's not taken into account in commission, but yes the spreads usually are 1-2 pips on EUR/JPY on EFX.

Round-trip commission for any pair with EUR at the start is roughly 1.5 pips.

Commission is $5USD for every 100,000USD traded ("5/100,000" - or 0.00005).

Convert the currency on the left hand side of the pair (in EUR/JPY's case, Euro) to USD.

100,000 EUR/USD @ 1.4771 = 147,710USD

Multiply the USD amount by the commission

147,710 * 0.00005 = 7.39 USD

Multiply by 2 to get round trip

7.39  * 2 = 14.78USD

Covert back to Euro

14.78 * (1/1.4771) = 10EUR

^ you can shortcut all this quite easily by remembering that the commission will be 5EUR for every 100,000EUR traded ($5A for every $100,000A traded, $5c/$100,000C, 5GBP/100,000GBP etc).

Get the value of the pip in EUR/JPY

100,000 EUR/JPY @ 157.89 = 15,789,000 yen
100,000 EUR/JPY @ 157.90 = 15,790,000 yen
1000 yen

Convert the pip value (which is always the currency on the right hand side of the pair) back to Euro (which is the left hand side currency in our case)

1000 * (1/157.90) = 6.33EUR

10EUR / 6.33EUR = 1.58 pips.

Although spread is not taken into account in the commission calculation - you need to add whatever spread you have at the time to the commission pip value if you're trying to compare.

Just remember however, a fixed-spread market-maker may offer a cheaper 'commission' as such, but you're limited in that you can't trade between the spread, you're trading against the broker and not a bank etc etc etc you've heard me rant on about it before

cheers.

 

[Stormin_Norman]

Re: Linuxtroll simple scalping

cheers for the commission answer.

what's the minimum account balance EFX have (and what's it likely to be for AUD accounts?)

 

[tayser]

Re: Linuxtroll simple scalping

$400USD to open account and they offer 1:100 leverage only.

hoping it's going to be $400-$500AUD when they eventually offer AUD accounts.

 

[Stormin_Norman]

Re: Linuxtroll simple scalping

$400USD to open account and they offer 1:100 leverage only.

hoping it's going to be $400-$500AUD when they eventually offer AUD accounts.

anything less then 1% margin is silly, really.

those costs make it a lot safer to trade. if the market goes against the trade, it can be closed out after 5 pips and cost not much more then a spread on most traders.

 

[tayser]

Re: Linuxtroll simple scalping

Got my 5 on AUD/JPY on Asian opens.

This pattern occured just prior (can see half of it on the left) - took a short position in anticipation of it heading south and grabbed 3.

Was being too cautious with this one and got slipped like buggary - I should have hit sell about 5 seconds before I did as I was watching a small H & S form. Can't tell with tick charts as it's not time-based, but that sharp movement happened within a second.

Time Order ID Message Event TIF Orig Trader ID
10:49:09 0v8012s:1gbh-00 Sell Short 1500000 AUD/JPY @ Market on MBTX [expiring: 29/04/2008] (1500000 traded at 95.11) Filled GTC DEMO****
10:55:24 0v8012s:1ge6-00 Buy 1500000 AUD/JPY @ Market on MBTX [expiring: 29/04/2008] (1500000 traded at 95.07) Filled GTC DEMO****
11:14:50 0v8012s:1gtz-00 Sell Short 1500000 AUD/JPY @ Market on MBTX [expiring: 29/04/2008] (1500000 traded at 94.94) Filled GTC DEMO****
11:18:20 0v8012s:1gzt-00 Buy 1500000 AUD/JPY @ Market on MBTX [expiring: 29/04/2008] (1500000 traded at 94.91) Filled GTC DEMO****

Euro tonight.

 

[tayser]

Re: Linuxtroll simple scalping

Today's work is done.

Incredibly fast movements, quick on the exit trigger lol

Pretty classic example of a short signal (bouncing its **** up and down on a resistance line), again, quick on the exit trigger like always.

Time Order ID Message Event TIF Orig Trader ID
17:57:42 0v9012s:047e-00 Sell Short 900000 EUR/JPY @ Market on MBTX [expiring: 30/04/2008] (900000 traded at 157.612) Filled GTC DEMO****
18:01:11 0v9012s:04ev-00 Buy 900000 EUR/JPY @ Market on MBTX [expiring: 30/04/2008] (900000 traded at 157.568) Filled GTC DEMO****
18:25:29 0v9012s:05io-00 Sell Short 900000 EUR/JPY @ Market on MBTX [expiring: 30/04/2008] (900000 traded at 157.484) Filled GTC DEMO****
18:27:55 0v9012s:05o9-00 Buy 900000 EUR/JPY @ Market on MBTX [expiring: 30/04/2008] (900000 traded at 157.42) Filled GTC DEMO****

Just as a special addition in this entry D), here's one of the minor lot trades that also take - I'm only posting the 80% lot trades in the journal, and I randomly test entry and exit signals with minor trades (1 lot so if it goes pear shaped there's minimal affect toward the overall profit) - anyhow. Another classic short signal, slowly heading southward and a classic example of where I am not trusting the rainbow.... it's easy to tell after the fact, but the exit is clearly where the trend goes northward after the very nice dive toward the .50 level.

Time Order ID Message Event TIF Orig Trader ID
19:16:22 0v9012s:07io-00 Sell Short 10000 EUR/JPY @ Market on MBTX [expiring: 30/04/2008] (10000 traded at 157.67) Filled GTC DEMO****
19:19:11 0v9012s:07lp-00 Buy 10000 EUR/JPY @ Market on MBTX [expiring: 30/04/2008] (10000 traded at 157.62) Filled GTC DEMO****

excluding the above trade, 5 pips on AUD/JPY and 8 on EUR/JPY - done. 73% on account balance since last reset (Jan 15th).

 

[tayser]

Re: Linuxtroll simple scalping

More micro-pipage practice

This was easier because on the Oanda 5 sec chart it kept butting its head against the spine (the lower highs) - this is true LT scalping, take the contrarian stance after a movement.

Time Order ID Message Event TIF Orig Trader ID
21:53:30 0v9012s:0cgf-00 Sell Short 10000 EUR/JPY @ Market on MBTX [expiring: 30/04/2008] (10000 traded at 158.33) Filled GTC DEMO****
21:54:08 0v9012s:0chd-00 Buy 10000 EUR/JPY @ Market on MBTX [expiring: 30/04/2008] (10000 traded at 158.29) Filled GTC DEMO****
21:54:43 0v9012s:0chv-00 Sell Short 10000 EUR/JPY @ Market on MBTX [expiring: 30/04/2008] (10000 traded at 158.33) Filled GTC DEMO****
21:55:29 0v9012s:0ciu-00 Buy 10000 EUR/JPY @ Market on MBTX [expiring: 30/04/2008] (10000 traded at 158.28) Filled GTC DEMO****

Not got the balls to do this with 80% of account balance yet.

 

[tayser]

Re: Linuxtroll simple scalping

...lol bloody over-cockiness made me wipe out gains after the US Interest rate release - not a completely bad thing I might add: So much so, it's the start of a new month, I after unintentionally wiping out a lot of gains due to over-trading, have now intentionally tanked my demo account balance further down to the point where I'm realistically going to start when I go live and am going to attempt to do just the same thing as I have been for the past two weeks, I should be looking for the same return each day (roughly 8-10%) which equates to 10 pips on AUD/JPY a day, or 16-18 on EUR/JPY each day.

 

[korrupt_1]

Re: Linuxtroll simple scalping

Hi Tasyer,

I had a go with the Rainbow charting and have SUCCESS with scalping

Although it's not forex, I figured the principles would apply to pretty much any thing that has good volatility and trends well. I traded the XJO equivalent with IG markets and scalped 15 points in 2.5 minutes and another 10 points in 2 minutes just today.

Total of 25 points and betting fairly large contracts, I made a few K's in under 5 minutes!

Trend is your friend!

When I saw it trend, I jumped on and place my 'bet'. Had tight stops of 5 points - just incase it goes pear shape. When the trend looks like it wants to breach, I hop off and pocket the scalpings Going with the trend gives you more confidence that you will profit from the trade.

Been laughing all day.... Thanks for posting this thread... what a wonderful thing to stumble upon...

Now I want to learn to trade FX's so I can do it after hours with fixed spreads - unlike the XJO CFD's, where the spread isn't a crazy 10 - 40 points!!

:bananasmi

 

[tayser]

Re: Linuxtroll simple scalping

hah, beautiful. Welcome to the dark side

It's all fun and games on the FTSE, CAC, DAX and DJIA too

Are you using IG Index? What sort of bet is it and how liquid are they?

The ultimate combo is scalping your favourite pair on London open utilising the higher leverage - your day job, and then scalping an index during the day - your pocket money.

 

[korrupt_1]

Re: Linuxtroll simple scalping

hah, beautiful. Welcome to the dark side

mwuhahaha...

Are you using IG Index? What sort of bet is it and how liquid are they?

Not sure if I am answering this right, but IG's FX is 2 to 4 pip spread depending on poplularity, eg AUD/USD is 2 pip spread 24hrs. Deposit is 2% I think. This is their example page: http://www.igmarkets.com.au/content/sites/aum/en_GB/forex-example.html

I don't know about liquidity, but sometimes when I trade the Index out of hours, some positions I take can't be filled, eg the other Tuesday when the market crashed overnight, I took a large bet of 50 mini contracts (worth $250/point) and it couldn't be filled. I eventually had to split it up into two lots of 25 over a range of about 20 points. Eitherway, I KNEW it was crashing and KNEW i had to SHORT like there was no tomorrow... made a KILLING that night!! (But my Long positions were wiped out too! )


What time is London opening?