Trading Psychological Levels - 1 pip scalping

[nomore4s]

Oh my god....


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

You have no friggin idea.

lol, I think a few of us have been trying to tell korrupt that but...........

 

[korrupt_1]

All I'm trying to say here is that if there's this (random) thing where the FX spikes pass rounding levels... then there's potential to make a win. Why not take advantage of that?

So far, documented 3 days across two major FX pairs.
48 trades and providing your stops are wide enough... that's 48 wins/pips, 0 losses.

There's nothing wrong with getting 1 pip... some traders are making a living from a few pips per day - and are successful at it... it can be done... why can't it be done on a rounding level - why does it has to be at S/R, pivots, fibonacci lines, trading with the trends, mma (rainbow), etc?

To the critics,... you are just jealous that after all those times spent on studying charts, reading news, doing technical and fundamental analysis, waiting for the perfect setup that will give attractive risk/reward trades... that this strategy is so simple... ok, that's me being sarcastic... but honestly I really do appreciate the comments

We're all here to learn and test out ideas and systems... by the sounds of it, you guys think I am crazy and wasting my time... perhaps... but as caribean said... i'm going to try anyway...

The only way to do this is to keep on trading for a few more hundred trades and see where this leads.

fwiw, i've done +100 real trades in the last 3 weeks and have had 100% success - still anticipating the day that I will blow up the a/c... but for the record, I have made around 200% return already.

 

[prawn_86]

fwiw, i've done +100 real trades in the last 3 weeks and have had 100% success - still anticipating the day that I will blow up the a/c... but for the record, I have made around 200% return already.

Good work

Why not take your initial capital out of the acc now and then you are 'free carried' as such for if/when you do blow it up.

 

[caribean]

Fair enough brother, good luck with it, just remember most people have said what they said, because they were concerned about you, no other reason.

 

[korrupt_1]

Good idea Prawn... but i'm commited to this... going go gungho and aim to achieve 1000 trades and risk my initial capital until i take profits.

Just amusing myself here... if one was to compound the returns...

Starting capital: $1000
Risk: 100%
Win: 0.1%
Average number of trade: 10 per day (or 2600 per year)

Potential return = $1000 (1 + 0.001)^2600 = $13,446

Assuming that rounding levels will never be the peak/bottom of the trading range and that 1000 pip will allow enough 'wiggle' room.

 

[prawn_86]

Do what you want, but if you think about it, taking your initial outlay out now, will only set you back a week or two time wise, but you will have effectively spent nothing if you do lose it all.

 

[tayser]

you'll need more than 1 pip for commission. I wouldnt want to hold a 23 pip draw down on a market "stop hunters R us" maker.

 

[korrupt_1]

you'll need more than 1 pip for commission. I wouldnt want to hold a 23 pip draw down on a market "stop hunters R us" maker.

Aye... 2 pip spread means... need to recover 3 pips to win 1 pip.
So far, this has not been a problem.


Would not want to physically set a stop loss in - as MM know this level and will take it out... just mentally note it - or put something like 100pips in as a disaster stop only - much like you have mentioned on the Cryox Rainbow Scalp thread.

 

[tayser]

I dont even bother with disaster recovery stops anymore, too cumbersome when you need to enter/exit with lightning speed, when you're truly scalping, you're only in the market for seconds.

 

[prawn_86]

I dont even bother with disaster recovery stops anymore, too cumbersome when you need to enter/exit with lightning speed, when you're truly scalping, you're only in the market for seconds.

What happens if you have a power outage or something though? I was stuffing round the other day and the power cut out for about 10 min and if a trade was open....

 

[Trembling Hand]

Just posted this in the AUD thread but thought its very appropriate for this one. So here it is from Nick Radge,

If you are like most people and believe that most important aspect of successful trading is being correct, unfortunately, it's your own ego you're caressing. You can be be a highly profitable trader and lose more often than not - indeed, some of the world's top traders lose more often than not.

Where does that sit with this method

 

[BentRod]

What happens if you have a power outage or something though?

That's when the praying starts

 

[korrupt_1]

Guys just to finish this thread off....

Over the last week, I've completed some 70+ trades. All successful.

Since I started this thread.. I'm allowed to say "This strategy Sux"...

Why...

1) Risking too much for too little gain.. although the win probability is high (99.99%)... its not worth the stress to see -$2000 before cashing in on +$100

2) Very labour intensive... crossings can happen anywhere/anytime, so you'll need to reset orders if they get executed. This becomes very hard when trading multiple pairs. If you have a trading bot script, you could do it.

3) There are easier ways of scalping 1 pip.

Im sure there's a way to take advantage of overshooting rounding levels, but I just can't seem to find a high win/loss ratio wtih good risk/rewards. I've even tried appling a martingale system to it, but you'll be "doubling up" exponentially... to make back the loss on a tight stop loss.

FWIW... I've stopped trading this method, although I made quite a bit over the last few days, it's distracting me from my usual routine.

 

[prawn_86]

Good to see you trying things though korrupt.

All the best with your next venture

 

[korrupt_1]

Good to see you trying things though korrupt.

All the best with your next venture

Thanks Prawn...

Check out my next venture here: https://www.aussiestockforums.com/forums/showthread.php?t=12264