THE BUY ZONE - TheRumpledOne

TheRumpledOne · Jan 13, 2008

THE BUY ZONE RULES:

The long zone is the Open Price + .0003 and +.0004.

The short zone is the Open Price - .0003 and -.0004.

For the USDJPY use .03/.04 instead.

Go long on green (bull) candle in the long zone and short on red (bear) candle in short zone.

I reset the Buy Zone at the start of the hour.

Or you can use the London, New York and Sydney open prices.

SL is 5 to 7 pips.

TP is whatever you can get before it goes against you.

JTrader · Jan 14, 2008

I've been looking at the BUYZONE indicator on my background chart this morning, and it has presented decent opportunities.

The success of this approach to a large extent would depend on being able to trade with low spreads without being impeded by your broker. For example, i would think that trading a fixed 3-pip spread on GBPUSD would go a long way to reducing the effectiveness of this scalping approach, as you'd struggle to cover the spread. Speed of execution also being important.

TheRumpledOne said:
THE BUY ZONE RULES:

The long zone is the Open Price + .0003 and +.0004.

The short zone is the Open Price - .0003 and -.0004.

For the USDJPY use .03/.04 instead.

Go long on green (bull) candle in the long zone and short on red (bear) candle in short zone.

I reset the Buy Zone at the start of the hour.

Or you can use the London, New York and Sydney open prices.

SL is 5 to 7 pips.

TP is whatever you can get before it goes against you.

Do you, when the bid price on the chart, hits the the "LgBot" price go long, and short at the "ShTop" price? (i.e. when the chart bid price hits the middle/least extreme lines/levels of the 4)

Thanks.

PS. cool band TRO

. Refering to TRO's member profile.

Trader333 · Jan 14, 2008

If that is the case then trading with a direct access broker may be the only way forward. The approach is still good though and I am looking forward to using it once I have things in place.

Paul

JTrader · Jan 14, 2008

Trader333 said:
If that is the case then trading with a direct access broker may be the only way forward. The approach is still good though and I am looking forward to using it once I have things in place.

Paul

I suppose it could be tried with wordspreads up to £100 per pip, who have 1pip USDJPY, AUSUSD, EURUSD & 2p GBPUSD spreads from 0800-1600. I suspect it'd only be a matter of time before they put you on dealer referal though, as this is scalping....

TheRumpledOne · Jan 14, 2008

I use EFX: Experience Forex Freedom as my forex broker. There is NO FIXED SPREAD in forex. It's a myth!

It's like when I go to Mexico and I want to buy Pesos. I walk around and look for the best exchange rate. If one place is give 10.95 to 1 and another is giving 10.85 to 1, who do you think gets my business?

It is the same in the forex market.

At EFX, when I trade USDJPY, all I need is 2 gross pips and I am making money. At the FIXED SPREAD BANDITS, whoops, I mean BROKERS, you need 3 or 4 pips just to breakeven.

It's about time forex traders become aware of what is going on.

TheRumpledOne · Jan 14, 2008

As you can see, another successful Buy Zone trade was triggered.

JTrader · Jan 14, 2008

TheRumpledOne said:
I use EFX: Experience Forex Freedom as my forex broker. There is NO FIXED SPREAD in forex. It's a myth!

It's like when I go to Mexico and I want to buy Pesos. I walk around and look for the best exchange rate. If one place is give 10.95 to 1 and another is giving 10.85 to 1, who do you think gets my business?

It is the same in the forex market.

At EFX, when I trade USDJPY, all I need is 2 gross pips and I am making money. At the FIXED SPREAD BANDITS, whoops, I mean BROKERS, you need 3 or 4 pips just to breakeven.

It's about time forex traders become aware of what is going on.

Cheers TRO.

When you are trading USDJPY for example, how big is the spread (+ any seperate commission) typically?

TheRumpledOne · Jan 14, 2008

You can download THE BUY ZONE FOR FOREX MANUAL free here: http://www.kreslik.com

TheRumpledOne · Jan 14, 2008

JTrader said:
Cheers TRO.

When you are trading USDJPY for example, how big is the spread (+ any seperate commission) typically?

See for yourself:

EFX Group gives you real time level II.

Usually, the spread is 1 pip.

Look at the times on those 2 pics.

Do you get to see that at a fixed spread broker?

OF COURSE NOT! THEY WANT TO KEEP YOU IGNORANT!!

I pay $.50 to buy and $.50 to sell 1 USD/JPY minilot. So $1.00 roundtrip. If I gross 2 pips, I gross $1.96 at this price level. So $1.96 - $1.00 = $.96. At a fixed spread broker, you are still in the hole at 2 pips. Think about it! Why give your money away?

Tell EFX that The Rumpled One sent you.

JTrader · Jan 14, 2008

But with EFX you do then have to pay a seperate commission. The commission equates to around 1 extra pip per round turn - i.e. $5 per $100,000 traded = $10 per round turn = 1 pip equivalent if trading 1 lot (100,000 units). If the EFX spread is 1 pip, that is all well and good, but if the EFX level 2 spread is 2 pips, you are paying 3 pips gross - the same as with a fixed spread broker.

Cheers.

Trader333 · Jan 14, 2008

TRO,

Do you have an ELS version of THE BUY ZONE ?

Paul

TheRumpledOne · Jan 14, 2008

Trader333 said:
TRO,

Do you have an ELS version of THE BUY ZONE ?

Paul

If you go to www.kreslik.com, I am sure there is a text version.

If you are NOT a code, make sure you download my _TRO_PLOT indicator.

_TRO_PLOT eliminates the need for coding most indicators.

Trader333 · Jan 14, 2008

Thanks I will have another look.

Paul

Trader333 · Jan 14, 2008

I have found the text version but unfortunately TS2Ki only allows 4 plots so it wont work and I guess that this applies to BUY ZONE as well. It is an irritating feature of TS2Ki that is very limiting.

Paul

TheRumpledOne · Jan 14, 2008

Paul,

For the Buy Zone, you can just use the long entry, long exit, short entry, and short exit trigger lines.

That's all you need.

TheRumpledOne · Jan 14, 2008

Over the last 24 hours, we have had:

* a high H1 range of 51
* a low H1 range of 5
* a average H1 range of 23

This gives you an idea of just how many pips you can expect to take.

P.S. I hope I did the image right this time.

TheRumpledOne · Jan 15, 2008

Another profitable Buy Zone trade.

TheRumpledOne · Jan 15, 2008

I admit it, I was greedy.. took 8 pips instead of the usual 6.

JTrader · Jan 15, 2008

TheRumpledOne said:
Look at the times on those 2 pics.

Do you get to see that at a fixed spread broker?

OF COURSE NOT! THEY WANT TO KEEP YOU IGNORANT!!

I pay $.50 to buy and $.50 to sell 1 USD/JPY minilot. So $1.00 roundtrip. If I gross 2 pips, I gross $1.96 at this price level. So $1.96 - $1.00 = $.96. At a fixed spread broker, you are still in the hole at 2 pips. Think about it! Why give your money away?

Tell EFX that The Rumpled One sent you.

Hi TRO

What time is that on the EFX USDJPY level 2 screenshots? CET, GMT, EST, Mountain or Pacific etc.?

Cheers.

Trader333 · Jan 15, 2008

TheRumpledOne said:
Paul,

For the Buy Zone, you can just use the long entry, long exit, short entry, and short exit trigger lines.

That's all you need.

Thanks again TRO, I will have another look as it was the _TRO_PLOT that I had downloaded.

Paul

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