Bob Volman Price Action Scalping

I finally got a copy of Bob's book and started reading it. Very interesting stuff, well articulated from both a technical and psychological POV like no other book I've encountered to date. I just got through the first three setups, DD, FB, and SB.

Since I don't have tick charts on Oanda's platform I tried using the 30 second setting. My concern is the difference between the tick and the time based charts, because the moving averages will definitely be different in the tick charts versus the time based ones. It's really a bummer because in order to use ProRealTime charting you have to shell out about $50 a month, unless anybody knows of a broker that provides them for less?
 
TonyIommich said:
I finally got a copy of Bob's book and started reading it. Very interesting stuff, well articulated from both a technical and psychological POV like no other book I've encountered to date. I just got through the first three setups, DD, FB, and SB.

Since I don't have tick charts on Oanda's platform I tried using the 30 second setting. My concern is the difference between the tick and the time based charts, because the moving averages will definitely be different in the tick charts versus the time based ones. It's really a bummer because in order to use ProRealTime charting you have to shell out about $50 a month, unless anybody knows of a broker that provides them for less?
Click to expand...

Another user that used to post about Volman's method (Mike) used NinjaTrader with Hirose Financial UK. You can use tick charts with NinjaTrader and I think you can set it so that the smallest increment in price is 1 whole pip. I don't know the details so I'm not sure if you can use a live data feed with the free version of NinjaTrader. You definitely have to pay if you want to trade live through NinjaTrader's charting package though.
 
Hi BLS,

Very nice trades today! Could you please share your thoughts on the 10 pip profit target you are using? Do you think it has any technical significance for institutions and big traders in which case we should measure 10 pips from the break point of a setup; or is it more of an arbitrary target measured from the actual entry point?

Thank you.
 
vanica said:
Hi BLS,

Very nice trades today! Could you please share your thoughts on the 10 pip profit target you are using? Do you think it has any technical significance for institutions and big traders in which case we should measure 10 pips from the break point of a setup; or is it more of an arbitrary target measured from the actual entry point?

Thank you.
Click to expand...

I think it's more of an arbitrary target measure from the actual entry point, though obviously it's better to get in at the break of a setup. Bob said in one of his emails replying to me that he never fiddles with the stop loss/profit target while in a trade (to match the actual point of entry); he lets the stop loss/target profit orders do their thing or exits with the tipping point technique. I still have trouble accepting this as I worry about my fills all the time. It's something I have to work on.
 
BLS said:
You can use tick charts with NinjaTrader and I think you can set it so that the smallest increment in price is 1 whole pip. I don't know the details so I'm not sure if you can use a live data feed with the free version of NinjaTrader.
Click to expand...

I signed up for a demo account on GFT, and fed it through NinjaTrader, setting it up to a 70 tick chart. Works at 1 pip at a time right now.

I'm going to use this to compare between the 30 second chart and see how the setups differ from one to another.

Tick charts seem cool but I don't care to be burning $50 a month until I'm sure I actually need them to trade. Incidentally it appears from the language that Volman seems to be trading the CME contracts, because he refers to his positions as 'contracts' as opposed to lots which is common lingo in the spot market. But there is no direct evidence either way.
 
TonyIommich said:
I signed up for a demo account on GFT, and fed it through NinjaTrader, setting it up to a 70 tick chart. Works at 1 pip at a time right now.

I'm going to use this to compare between the 30 second chart and see how the setups differ from one to another.

Tick charts seem cool but I don't care to be burning $50 a month until I'm sure I actually need them to trade. Incidentally it appears from the language that Volman seems to be trading the CME contracts, because he refers to his positions as 'contracts' as opposed to lots which is common lingo in the spot market. But there is no direct evidence either way.
Click to expand...

You might want to sign up for a one week trial for ProRealTime and compare that 70 tick chart to the tick chart in Ninja Trader with the GFT demo feed. My experience with forex demo accounts so far is that while they say there is a time limit (ie 60 or 90 days), you can use it beyond that trial period if you are actively using (logging in once a week or so) the demo platform (or if you email them asking about your demo account, I'm not sure).

I mean, if Ninja Trader tick charts with the GFT demo feed seem similar enough to the ProRealTime 70 tick chart (you may have to adjust the number of ticks on NinjaTrader), maybe you can switch to GFT (or another compatible broker) instead.
 
is 70 tick equivalent to 1min TF? cause I need 1min chart equivalent. Or will 1min equivalent work well on the system.
 
kenhigh said:
is 70 tick equivalent to 1min TF? cause I need 1min chart equivalent. Or will 1min equivalent work well on the system.
Click to expand...

Volman says in Ch 2, The Tick Chart, "Sometimes this frame resembles a 30-second chart, but when volume picks up, it takes on a life of its own."

That's true because when you look at the examples in the book, whenever you have a breakout bars come out at 2-3 or more times the speed that they do pre-break out. So you'll have 2-3 times more bars all of the sudden, as opposed to with a classic time chart where that information would be represented inside of fewer or even just one bar.

When talking about the issue of tick charts and how decentralized the FX market and tick data is, Volman says:

"The reader may have to experiment with the proper tick number in his personal graphics to produce a chart that approximates the setting of the ProRealTime charting package used in this book. This is no reason for worry though. Close is close enough. In fact if the tick count in all of our charts was set to something like 65 or 75, it really wouldn't have altered the patterns, nor their tradability, much. Within another package, however, the number may have to be set to something like 40 or even to a 100 or more. It all depends on how the charting companies filter their incoming data...A good trick is to set the tick number to a level that resembles a regular 30-second time frame chart; if so, then you are very close."

As Volman also points out, Asian markets will be much slower so it is best to experiment in the more active markets.
 
9Muu0.png

Why my chart full of uncompleted bars like doji? Is there how I will set it to be like examples or its that good?
 
Right now the market is super thin, so its normal that you should have a very narrow range and a lot of dojis.
 
Alright, did a bit more work here. I created a Metatrader 4 account for myself in Oanda, funded it with an account transfer of just $1 from my other Oanda account (I intend to execute through the web platform).

To get the tick, I did a modification using LogTickData.mq4 and PostTickData.mq4 indicators. To DL them, search "Tick Trading Systems for MetaTrader USDivers", and if you want more specific instructions on how to do it, google "How to Setup Tick Charts in Metatrader 4 by Rajandran R" and there's a good step by step article.

I set the tick indicator to 70, and will begin experimenting from there. Right now the market is pretty quiet so I can't get a full effect, but I'm seeing the 70 tick chart do its candlestick dance in MT4.

I have the GFT feed on Ninjatrader doing 70 tick as a comparison, as well as Oanda's 30 second chart on its web trading platform. We'll see how they all jive together when the US session starts. I figure I can rely on this setup to keep my fixed costs down while I'm learning, and when its time to go on with big size then I may get the real deal just to make life simpler.

The one disadvantage with this method is you have to keep the programs running to capture the tick data, whenever you restart the platform you have to begin from scratch. But I think that even with the ProRealTime package they don't give you access to historical tick data, so if you shut down your platform for the night and get up the next morning you can't check the previous sessions in 70 tick form, right?
 
Is there anything wrong with the shape of the pullback in this DD setup?

2i1k0m9.png
[/IMG]

Would appreciate any comments!
 
TonyIommich said:
The one disadvantage with this method is you have to keep the programs running to capture the tick data, whenever you restart the platform you have to begin from scratch. But I think that even with the ProRealTime package they don't give you access to historical tick data, so if you shut down your platform for the night and get up the next morning you can't check the previous sessions in 70 tick form, right?
Click to expand...

You get 7 days of historical tick data on ProRealTime. If you upgrade to the premium version I think you get 16 months of tick data.
 
With conjunction of 3min TF, I can see maximal profitable chances based on break out of 3min TF swing high/low. Together with S/R of 3min TF
 
BLS said:
You get 7 days of historical tick data on ProRealTime. If you upgrade to the premium version I think you get 16 months of tick data.
Click to expand...

Thanks! Good to know...

I was playing with the tick settings today, now that the market is moving a bit faster. It appears with Oanda, I'm getting the tick close to the 30 second chart at 30-40 ticks. I still have to keep playing with it as the action picks up today. My one concern is that the market is going to be quiet today and tomorrow until FOMC, so it may not be the most reliable estimate.

GTF's platform stopped feeding data to Ninjatrader, I guess they catch on fast :confused:
 
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