Scalping FX with Cyrox Rainbow

[prawn_86]

Man do i feel stupid.

I still cant figure out where to select the template.

I have attatched a screenshot of the "format data series" screen so you can see that there is no template part on mine

 

[lesm]

Prawn,

Looks like you may be right clicking on the chart based on the screen shot.

When you follow the method described by Tayser the Template selection is on the lower left of the 'format data series' screen.

If you right click on a chart and select 'Format Data Series' from the menu list the screen that is displayed does not have the template drop down box.

Try right clicking on a chart, when the pop-up menu is displayed the "Template" menu item is second from the bottom. Selecting this will provide you with the option to load a template.

Just as a matter of interest which version of NT are you using. The description above is for NT 6.5 Beta.

Cheers.

 

[prawn_86]

Finally got it.

thanks guys

Now to test my wicked skills...

 

[tayser]

you can post screenshots, so do I what I do in here and post them in this thread (if you want to post the order book output from EFX, right click the orderbook and Export Data > Copy to Clipboard, paste in here - careful as it will have your account number in it - I usually asterisk the last 4 characters in the account number out (See above)) . The more of us doing it, the more you can help each other.

 

[prawn_86]

ok here goes...

DISC - I am an absolute, complete, total newbie, so any gains are most probably pure luck at this stage. I have spent a grand total of about 2hrs in front of the AUD/JPY chart so yeh...

But i did manage to take a quick 11pips this morn

I actually looked at the daily chart (i think) first, when it loaded up, and there was a nice triple top which had formed, which helped my decison to short it, as i thought it had further to fall.

Should have continued to hold as it broke down through .05 but i was more than happy with that for my first 'trade'



19:31:41 AUD/JPY Executed Sold Short 30000 AUD/JPY at 99.15
19:42:54 AUD/JPY Executed Bought 30000 AUD/JPY at 99.04

 

[prawn_86]

Also, just for a bit of background info.

I am going to assume i put $1k into an account. So i wont be using the full account balance. Hence why i am trading 3 lots at this stage, as that gives me around about 30% leverage, which enables a few mistakes.

Even though its all theoretical, still pays to get as close to reality as possible

 

[tayser]

well done. the usual support and resistance characteristics apply as you've just mentioned and you caught a big move - this is exactly what you should be looking for, high probability entries, dont look for the small scalps when it's range bound.

my advice to you? stop now (for today). come back tomorrow and get the same amount of pips and repeat. If you can't not look at the market, only have Ninja open, just sit and observe, do not overtrade!

(btw, your net return there was 10 pips, round trip commission on A/J is slightly less than 1 pip (when/if the rate goes above 100 yen it'll be slightly more than 1 pip))

cheers.

 

[tayser]

Also worthy of note: in yen crosses there are 'natural' support/resistance points at the *.00 and *.50 levels - your trade above is perfect in that the price was heading that way and it was taken after the Asian open. Just come back and do it every day and you won't need a day job (and you won't be a slave to the ASX market hours ).

In short, variables to take note of:

- 'Natural' support/resistance
- daily, weekly and monthy pivot/support/resistance (I have MT4 loaded up in the background with an EA which plots them automatically for me)
- Session open times.
- Look for patterns & memorise them

Taking the 4 into account above wait for the big movements and act on them - big movements can usually be picked when the purple in the rainbow expands (confirm it with a slower timeframe i.e 30 second or 1 minute charts).

cheers.

 

[prawn_86]

well done. the usual support and resistance characteristics apply as you've just mentioned and you caught a big move - this is exactly what you should be looking for, high probability entries, dont look for the small scalps when it's range bound.

my advice to you? stop now (for today). come back tomorrow and get the same amount of pips and repeat. If you can't not look at the market, only have Ninja open, just sit and observe, do not overtrade!

(btw, your net return there was 10 pips, round trip commission on A/J is slightly less than 1 pip (when/if the rate goes above 100 yen it'll be slightly more than 1 pip))

cheers.

thanks Tayser.

I can see why you got interested in this method. the hours could be quite good if you made a living from it

I too have set a 10 pip target per day, as a very rough guide. So that one trade was it for the day.

But as you suggested im now just going to watch the charts and look for patterns. And maybe do some paper demo trading! lol

 

[prawn_86]

After watching for a while i found what i thought would be a good probability entry.

Got out a bit early, but the amount it is whipsawing at the moment i was happy with a profit, even if it is only 1 pip nett.

Isnt hindsight a wonderful thing ... should have held longer...

I have learnt from today that i dont need to be in a trade all the time, just the ones i think have a high probability. Wait for them to come to me...




02:33:57 AUD/JPY Executed Bought 30000 AUD/JPY at 98.52

02:36:02 AUD/JPY Executed Sold 30000 AUD/JPY at 98.54

 

[tayser]

Aggressive scalp:

Time Order ID Message Event TIF Orig Trader ID
21:14:41 0vu002s:0bq7-00 Buy 500000 AUD/JPY @ Market on MBTX [expiring: 21/05/2008] (500000 traded at 98.83) Filled GTC DEMO****
21:23:39 0vu002s:0c0l-00 Sell 500000 AUD/JPY @ Market on MBTX [expiring: 21/05/2008] (500000 traded at 98.87) Filled GTC DEMO****

 

[prawn_86]

Another 3 pips nett.

I think i get to jumpy when i have a trade open and exit too early. Something I have to work on. I very nearly got stopped out of this at the start because i was trying to predict the move, rather than wait for the cross.


Nett of 11pips this morn and another 4 tonight, which i am very happy with



06:45:53 AUD/JPY Executed Bought 30000 AUD/JPY at 98.63
06:52:11 AUD/JPY Executed Sold 30000 AUD/JPY at 98.67

 

[tayser]

I'm still very jumpy and undisciplined... lol, I'm not going live until I'm satisfied I've gone a fair way to overcome it.

 

[prawn_86]

Well, gave back all of yesterdays gains in 2 trades this arvo. 2 whipsaws and that was that. Should have watched for a while

not good...



01:42:36 AUD/JPY Executed Bought 30000 AUD/JPY at 99.46
01:43:53 AUD/JPY Executed Sold 30000 AUD/JPY at 99.38 **was targeting a hit of 99.5 for a couple quick pips**

01:45:17 AUD/JPY Executed Sold Short 30000 AUD/JPY at 99.35
01:53:07 AUD/JPY Executed Bought 30000 AUD/JPY at 99.41
**target 99.30. never made it**

 

[prawn_86]

Got another 5 pips back after waiting for a decent entry. Broke 99.30 and i was in, Almost got whipsawed out, but it bounced back down off of previous support nicely.


02:25:06 AUD/JPY Executed Sold Short 30000 AUD/JPY at 99.28
02:31:39 AUD/JPY Executed Bought 30000 AUD/JPY at 99.22

 

[julius]

Hi tayser, prawn et al.

just wondering if you could provide more of your reasoning behind the entries...

also, what times are the best for the other pairs, GBPUSD, AUDUSD, EUR, etc

thanks in advance

 

[prawn_86]

Check back at the very first post for a very good overview that Tayser posted

 

[prawn_86]

I think im trying too hard tonight, so im going to stop.

Couldnt really get anything right, most went against me straight away, plus doesnt seem to be much range on the AUD/JPY tonight...

Hopefully i'll do better tomoz

 

[Stormin_Norman]

I think im trying too hard tonight, so im going to stop.

Couldnt really get anything right, most went against me straight away, plus doesnt seem to be much range on the AUD/JPY tonight...

Hopefully i'll do better tomoz

u should have been looking @ the GBP tonight cause of its important news announcement.

for a good site for news announcements: http://www.forexfactory.com/

 

[Trembling Hand]

Hey Guys just a observation whats your stop to profit ratio.

Just looking at a couple of the charts its seems that the stops aren't much greater than the target. Now this is fine if you intend to trade Lots of round trips and win slightly more than lose, but on a couple of hits a night you may find you have no profitability after a month or more of trading. If you are paying 2 ticks spread your already 20% down on every trade (with 10 pips target). With out a large R/R ratio you are going to be up against it scalping. Especially if you are only doing a couple of round trips per day.

I'm not knocking scalping that's what I do but to do it profitable you really have to do hundreds of trades a day. And if you have to Buy/Sell at market scalping is near impossible.