Trading Psychological Levels - 1 pip scalping

[skyQuake]

Re: Trading Psychological Levels

Do a bit more backtesting, and some forward testing. Trying to make 1 pt with a 20pt stop would have high %success just by virtue of markets chopping around. You just gotta figure out if its worth it. Good luck and remember to share your millions

 

[korrupt_1]

Re: Trading Psychological Levels

Do a bit more backtesting, and some forward testing. Trying to make 1 pt with a 20pt stop would have high %success just by virtue of markets chopping around. You just gotta figure out if its worth it. Good luck and remember to share your millions

LOL.. you wanna share my losses too?

What TH said.

Why does your SL need to be so big? Plus you will need to try and let a few positive trades run here and there.

I'm sure the SL doesn't needs to be so big... but it will allow it to move around before it yields 1 pip. I've been using 20pip SL recently and have not had a stoppage . Although I do see some earlier examples of where I would have been stopped out. I think these were crossings that happened during news annoucements.

I agree that some trades will need to be left run, - probably when I'm monitoring it, but otherwise, 80% of the time, the trades are automated by orders with predefined targers and stops.

Anyway, I've decided - as a hobby in between my real trading - to document all my trades details and put it up for public scrutiny. If I blow up my a/c, well so be it... it's only money I'm willing to loose (actually... call it an education fee)

Will update later last night's work.

 

[Trembling Hand]

Re: Trading Psychological Levels

WHY??

Why bother with something that needs a 20 to 1 win/loss ratio just to break even?? thats 95 winners to 5 losers just to make nothing!

Come on! that's a waste of time.

 

[prawn_86]

Re: Trading Psychological Levels

Agree with TH once again.

You really dont have the 'odds' going for you with such a big stop. Dont trade around news time, and then put your stop to like 5 pips instead of 20.

Im still not sure i grasp what exactly it is your trying to do so i'll wait till i see some trades to comment further.

Also (mod hat on), do you want this thread to be re-named if you are going to post your trades in here?

 

[korrupt_1]

Re: Trading Psychological Levels

Oh man... you guys are shooting me down...

I know you pro-traders are adament on capital management with good risk/reward setups - I am too, really!... but if there's an easy 1 pip scalp, why not take it?

The anomaly of the FX shooting pass the rounding/psyschological level for 1 pip can be easily backtested. I've been doing that visually on the charts, but it's hard to guage maxium drawdowns and time in market. A good backtesting script will be able to tell me immediately these things I need to know...

For now, I will continue to experiement and see if this really has potential... you can call this the "crappy, high risk, low yielding but successful 1pip scalping" strategy

 

[Kauri]

Re: Trading Psychological Levels

Oh man... you guys are shooting me down...

I know you pro-traders are adament on capital management with good risk/reward setups - I am too, really!... but if there's an easy 1 pip scalp, why not take it?

The anomaly of the FX shooting pass the rounding/psyschological level for 1 pip can be easily backtested. I've been doing that visually on the charts, but it's hard to guage maxium drawdowns and time in market. A good backtesting script will be able to tell me immediately these things I need to know...

For now, I will continue to experiement and see if this really has potential... you can call this the "crappy, high risk, low yielding but successful 1pip scalping" strategy

What spread does your broker run on the pair/pears you are looking at??

Cheers
..........Kauri

 

[nomore4s]

Re: Trading Psychological Levels

With a 20 to 1 ratio it's only a matter of time before you blow up.

If you took even 2 losses in a row you would need 40 wins in a row to break even.

Even with a SL at 5 pips you are still asking for trouble if you are trying to get only 1 pip, any run of losses will hurt.

 

[prawn_86]

I have modified the thread title for you korrupt.

I will be very interested to see some charts of your trades.

The only thing that I am worried about is the size of your stop loss, as TH said, if you get you SL hit once then you need 20 positive trades to make back that 1 loss. So as you can see the losses potentially could compound very quickly.

Watching with interest though

EDIT - nomore4s beat me to it...

 

[korrupt_1]

Ok... just really quickly... don't have much time atm...

Here's a chart of the last 3 hours on the A/U.

The broker I am using has 2pips spread... so from entry to exit, one would need 3 pips in total.

These are not trades, but theorectical. Total 14 trades. 8 Longs (red), 6 Shorts (Blue). The black line is the $0.8600. The two horizontal red and blue lines are the entry and exit levels.

The 8th Long trade would have been stopped out if using anything less than 10 pips.

Looking at the chart, I think an SL of 7 pips would be ok... but that really means only 5 pips due to the spread...

 

[Timmy]

Re: Trading Psychological Levels

... but if there's an easy 1 pip scalp, why not take it?

Sitting through a 19 pip 'pullback' before it recovers 20 pips for your 1 pip profit is not an 'easy scalp'. Maybe you will have to blow some money before this makes sense to you.

 

[caribean]

Korrupt, most of the experienced traders have told you it will not work, though i'm sure you'll try it none the less, and that's fine, you've got to satisfy your self, just don't commit real money untill you're sure it works, when you find out it doesn't, don't get disheartened, there are many ways, you'll find one that suits you, but it's hard work, it doesn't come easy.
Those support/resistance areas occur everywhere, you don't have to use fibs, pivots or anything else of the type...simply observe where price has reacted previously, draw a horizontal line there, observe how price reacts on those levels, what type of candlesticks do you get prior to price momentum kicking in, then move on to trendlines, try to "triangulate" at least three reasons for taking a trade...and at least one reason for exiting it!!!
If you like indicators add one, and watch how it behaves when near those levels..... the start of building a method.....
All of the above is just my humble opinion, hope it helps you.

 

[korrupt_1]

Trade Summary for 26th August

10 trades
Maximum Potential loss... < 10pips on Entry 1

 

[korrupt_1]

Trade Summary for EUR/USD 26th August

10 trades
Maximum potential loss of 20pips on trade #7

 

[prawn_86]

Trade Summary for EUR/USD 26th August

10 trades
Maximum potential loss of 20pips on trade #7

So you would be down by a lot if you had that 20pip stop. if you tightened it to about 3 or so then you could have something by the looks...

 

[korrupt_1]

27th August AUD/USD

5 Trades
Maximum potential loss 10pips on trade #5

 

[korrupt_1]

Trade summary for EUR/USD on 27th August

10 Trades
Maximum potential loss 16pips on trade #8. It could have crossed cleanly or oscillated around the 14700 level before crossing it during that 5 minute.

 

[korrupt_1]

Just to clarify the above EUR/USD trades, I said trade #8 had a potential loss of 16 pips... i just got my hands on the 1 minute charts and it showed that it crossed cleanly in that minute. Likewise for trade #7.

This makes the maximum potential loss for the above EUR/USD on trade #5 at 11pips.

 

[korrupt_1]

Trade summary for 28th August on AUD/USD

5 Trades
Maximum potential loss on trade #2 of 9pips

 

[korrupt_1]

Trade summary for EUR/USD on 28th August

8 Trades
Maximum potential loss of 29 pips on trade #3. Time in that trade would have been >1hr

 

[Frank D]

Oh my god....


1 pip scaple...... you guys need to be slapped around with a big wet fish.

You have no friggin idea.