Bob Volman Price Action Scalping

[Traderallen]

I started trading around 2004 spent quite a bit of time learning how today trade in developing a daytrading system for US equities. I spent three years reading and studying everything there is before I finally realized almost everything I read and studied was wrong or worthless. Even some of the much touted books that you hear all the time in my opinion for your average learning to be trader are worthless. Books like market wizards, most books on technical analysis will not teach you what you need to know. After designing my own system for daytrading US equities I decided to learn about options. If you think daytrading is hard wait till you get to options. My preferred method of trading now in the Forex market due the fact that is mostly unregulated. I then take my profits and put them into ETF's and/or index options. I started learning this method about a year ago along with a couple other scalping or short term trading methods. In narrowing them down to the one I like the best and can make the most money I ended up using the method Bob teaches in his book. I also like the method taught by Tim LuCarelli and still use his method for a longer-term outlook and to help shape my decisions for trading long or short. The other method I considered is taught by Lance Beggs but I found it too cumbersome and hit or miss on the trades. But I do think it's a good method and could probably be molded into something that works. From my daytrading days I've become very accustomed to tape reading so I never trade without a level II screen with time and sales. I can the trade SPY with just a level II and time and sales with no chart at all. An average 10 to 1 winners over losers. It takes lots of money and a lot of stress. Scalping Forex is much better.

 

[garageboyFUJI]

Hi.
What do you think about this price action? This chart what I trade yesterday, but I skipped. Because I didn't think that buildup was enough. I think that was a good squeeze, but I think premature break.

 

[matty_dunn]

Hi guys!

I have a question for anyone who is able to answer...
My broker is FXOpen, and they offer a very well built Oneclick ea. However, it does not allow me to disable hedging (therefor I have to click ''close all'' button, instead of buying or selling to close) Even though it is not a big problem, if someone has an idea how to disable hedging, I would be very happy
My main question is actually this one: Is there a way, even by using this oneclick Ea, to adjust the lot size automatically in relationship to the balance?
Would it be a separate Ea or should I change the script of the oneclick Ea?
Also, I have no idea how to right scripts... haha
Just a thought I had, maybe someone would be interested of developing this with me?
Have a good head scratching time!

Hi Kulpio,

Sorry but I don't know how to do what you're talking about. My broker offers an option to disable hedging, and as for writing scripts - I'm with you - no idea!

Sorry, hopefully someone else can help you...

 

[matty_dunn]

Hi.
What do you think about this price action? This chart what I trade yesterday, but I skipped. Because I didn't think that buildup was enough. I think that was a good squeeze, but I think premature break.

Hey Fuji,

I think the build up is sufficient, and the little false break before the entry certainly helped. However, I think the main concern is where this break takes place - straight into the 60 level. Adding to that - economic data is also out shortly. Pressure was definitely building for a bullish break. A tough call...

 

[rainwood]

Hello Guys,

After reading Bob's book and realizing that using MT4 I don't have access to tick charts I coded a tick chart indicator for MT4. I even coded an option called 'RoundtoPip' for those, who are using a 5-digit broker (like me). This function rounds 5-digit broker prices to 4-digit prices, so you can identify blocks more easily as described in Bob's book.

I see most of you use professional charting software, but in case you want to check the indicator, visit this thread

Now there is a free trial to download until 25th of September.

 

[Traderallen]

Hello Guys,

After reading Bob's book and realizing that using MT4 I don't have access to tick charts I coded a tick chart indicator for MT4. I even coded an option called 'RoundtoPip' for those, who are using a 5-digit broker (like me). This function rounds 5-digit broker prices to 4-digit prices, so you can identify blocks more easily as described in Bob's book.

I see most of you use professional charting software, but in case you want to check the indicator, visit this thread

Now there is a free trial to download until 25th of September.

sounds great, before I buy I'm wondering how much liability insurance do you carry? My average trade size can run into the tens of thousands of dollars and if I'm in a trade and your indicator you've created its funky and messes up and I lose thousands I want to make sure I would be able to sue you for the maximum amount of my loss. So before I purchase anything from you I need to make sure you have enough liability insurance. If you don't carry enough coverage I'd have a hard time convincing my partners to take the risk.

 

[matty_dunn]

Hey guys, charts from screen time I got in on Monday and Tuesday.

No trades taken.

 

[rainwood]

sounds great, before I buy I'm wondering how much liability insurance do you carry? My average trade size can run into the tens of thousands of dollars and if I'm in a trade and your indicator you've created its funky and messes up and I lose thousands I want to make sure I would be able to sue you for the maximum amount of my loss. So before I purchase anything from you I need to make sure you have enough liability insurance. If you don't carry enough coverage I'd have a hard time convincing my partners to take the risk.

Hey TraderAllen, let me answer you. Forex is a risky business and you need to carry the risk of your own trading decisions. Accordingly the tick chart indicator is provided 'as is' without any liability of the author.The indicator is not a trading system, it doesn't give you trading signals, neither does it suggest you to exit trades, no such thing is included. It only lets you view the time-based chart a little different, through tick-based candlesticks, and you can decide if you want to use it in your strategy or not.

But before making any decisions - just as with any other indicator - it is worth to test it in a demo account to see how it works, and to see if you can rely on it. However should you choose either way (rely on it or not) it will be your own decision and only you should be liable for your own decisions.

 

[Traderallen]

You made my point for me. If my broker or paid chart service screws up, I can seek recourse . If a fly by night company's as is software screws up , I eat the loss. Trading is not a game its a business. As a business one should never take unnecessary risk.

 

[Pippi56]

All brokers have there asses covered as far as technology risk and force majeur goes. Read your customer agreement. I have read all the fineprint from the 5 firms i have been a client - and its not pretty. They screw up - your problem. You can always litigate, but i doubt it would go anywhere, except in extraordinary cicumstances. The risk of a 'usual' IT malfunction lies with you, and you most likely signed off on it in the agreement.

 

[rainwood]

Trading is not a game its a business. As a business one should never take unnecessary risk.

Agree with that. If you find something risky don't do it. It is your call. No problem.

 

[Traderallen]

So far so good. here is my last loss I was a little late entering this DD.

trade type win or loss
1 RB WIN
2 DD WIN
3 NEWS WIN
4 ARB WIN
5 dd WIN
6 bb WIN
7 dd WIN
8 ARB WIN
9 ARB WIN
10 ARB BE
11a RB loss
11 DD WIN
12 ARB WIN
13 ARB WIN
14 NEWS WIN
15 RB WIN
16 RB WIN
17 RB WIN
18 GAP FILL WIN
19 RB WIN
20 RB WIN
21 RB BE
22 DD WIN
23 DD loss
24 RB WIN
25 RB WIN

 

[matty_dunn]

Congratulations TraderAllen - your results are ridiculously good. 22 profitable trades from 25...I've never come across such impressive statistics.

Anyway, no trades for me on Wednesday. One for Thursday. At the moment I'm attempting to limit my entries to trades I am positive are high probability trades (with my current skill level). This may mean only taking a couple of trades a week.

 

[Traderallen]

You might focus on RB and ARB entries in the current climate. I find them more reliable lately. And easier to spot. Its ok to be picky I'll watch and wait sometimes for over an hour for the just the right time to strike.

 

[matty_dunn]

You might focus on RB and ARB entries in the current climate. I find them more reliable lately. And easier to spot. Its ok to be picky I'll watch and wait sometimes for over an hour for the just the right time to strike.

I agree that well formed and positioned RBs and ARBs in particular offer very good odds at the moment. As for waiting...man, an hour is a short wait for me at the moment. I can go 2 or 3 trading sessions without a trade (3-4 hours in length).

 

[Giorrgi]

I agree that well formed and positioned RBs and ARBs in particular offer very good odds at the moment. As for waiting...man, an hour is a short wait for me at the moment. I can go 2 or 3 trading sessions without a trade (3-4 hours in length).

I go days without a trade sometimes.

And when I go "nuts" (1-2 trades per day) I usually lose.

Like the last week.

I haven't been posting because I'm really busy studying for the bar and I was sick. I still traded, mostly the EUR/JPY and all losers after monday. So I'm stll stalling at break even.

I think the EUR/JPY is a nice pair but it's a little bit more chaotic then EUR/USD, therefore the very tight stops that we're using aren't as reliable. I don't have a large enough trade archive to go into meaningful statistics but I'm considering dropping EUR/JPY. If anyone trading that pair could chime in as well that'd be nice.

 

[Pippi56]

What do you guys think about this: according to Volman, its enough to have 1 or 2 hours of chart data on the screen. But if you zoom out a little right now in eur/usd, there is a lot if resistance above 37 to 50 from midday(London). I would venture a guess that a lot of people see the same thing and hesitate to get long, or possibly even try to short it.

On the other hand Volman is of course right, if you overanalyze and go back too far, there will always be a reason to reject the trade. Personally i do look a bit further back, but try only to account for really very obvious levels near by(same trading day, maybe a few hours back max). So that i dont trade directly into something like that.

 

[ikdenk]

xauusd gold

I think the EUR/JPY is a nice pair but it's a little bit more chaotic then EUR/USD, therefore the very tight stops that we're using aren't as reliable. I don't have a large enough trade archive to go into meaningful statistics but I'm considering dropping EUR/JPY. If anyone trading that pair could chime in as well that'd be nice.

I don't trade eurjpy, but use this strategy to trade xauusd - gold on a 1 minute chart.

Gold is an awful lot more volatile than eurusd or eurjpy for that matter, but also has many more trading opportunities per day, hence the advantage of a lot more practice.

I don't use a TakeProfit because at times gold can do an enormous runner which can make up for quite a few losses.

I am still experimenting with different StopLosses, a small StopLoss of 6 pips or a bigger StopLoss of 20 pips or only an emergency StopLoss of 50 pips with manual closes around 10 pips.

I trade with a fixed spread of 2 pips.

The set-ups are subtly different as you would expect, but lots of practice helps here. Next week will be my seventh week with this strategy and I am slowly getting more winning than losing days.

I tried this strategy about a year ago on eurusd but could not make it work then, for a number of reasons, mainly behaviorally.

 

[matty_dunn]

What do you guys think about this: according to Volman, its enough to have 1 or 2 hours of chart data on the screen. But if you zoom out a little right now in eur/usd, there is a lot if resistance above 37 to 50 from midday(London). I would venture a guess that a lot of people see the same thing and hesitate to get long, or possibly even try to short it.

On the other hand Volman is of course right, if you overanalyze and go back too far, there will always be a reason to reject the trade. Personally i do look a bit further back, but try only to account for really very obvious levels near by(same trading day, maybe a few hours back max). So that i dont trade directly into something like that.

Hey Pippi56, this is an issue I have been grappling with for a while - to look or not to look, and if so how far back?

Personally, my curiousity gets the better of me and I also feel more comfortable looking back, and a long way back at times. This has resulted in taking some trades with much higher confidence but also keeping me out of trades I might have taken with only 1 1/2 - 2 hours of data.

The biggest problem I find is the indecision that can arise due to conflicting information. The easiest way for me to see it at the moment is that if I have the information then I must use it to make the best decisions I can with confidence.

At the end of the day every trader has to personalise his/her own strategy and trade set-ups that make sense to him/her. This can mean taking set-ups recommended by successful traders like Bob Volman, but then tweaking them for best personal use. Obviously individuality can also be expressed in the type and quantity of data used to make good trading decisions.

In the charts below you will see what I mean by using longer time frame information for potential trades.

No trades for Friday, even though there were plenty of opportunities in hindsight. Never mind, the markets will be open next week...

 

[tdezo]

Hello Guys,

Looks good , Ill give it a shot. It would be 90% off compared to the other recommended provider.