Intraday Trading the Forex market to make consistent profit

[TheRumpledOne]

F:

I SEE something...

If you count the number of lines that the LR45 crosses in one direction, it gives a clue how many lines to expect to cross in the opposite direction.

When it crosses 3 lines to the upside, you can expect it to cross at least 2 to the downside and vice versa.

A cross of only 2 lines, means it may be better to wait then enter. Of course, if your spread is so small it doesn't matter, then you don't have to consider this wait.

'Any thoughts, F?

P.S. I creating a multimeter to show if price is crossing above below the LR45.

 

[TheRumpledOne]

Hi TRO

That's good - I am pleased

i appreciate you might laugh at this - but this is were the "devil is in the detail"

I tried many years ago - when I kept being told my many other traders - please keep it simple with just 1 quick LR say the 45 or 50 - rather than 2 or 3.

i did an experiment over 500 trades

I also tried separately 2 other setting - 55 and 65 in isolation

For certain months - the 65 gave me the best results - then other sessions the 45 got me in quicker

However - and this is why I use 3 quick LR's rather than 1 - by using an ultra quick - ie under 15 - then a 2 more average quick LR's - my average entries are from 1 to 2 pips earlier

Lets say just 1 pip

OK on an average 2500+ scalps a year - with just a 70% win rate - ie say 1750 winning trades - and extra 1 pip gain on just 1 lot - is $17500 per year - extra income

So in conclusion - that's why I use 3 quick Lrs over 1

Regards



F

Ok F, but then PLEASE define the conditions IN DETAIL for LONG and SHORT ENTRY.

It is a fill in the blank:

PRICE IS ____ THAN PREVIOUS PRICE

PRICE IS ____ THAN LR15

PRICE IS ____ THAN LR25

PRICE IS ____ THAN LR45

LR15 IS ____ THAN PREVIOUS LR15

LR15 IS ____ THAN LR25

LR15 IS ____ THAN LR45

LR25 IS ____ THAN PREVIOUS LR25

LR25 IS ____ THAN LR45

LR45 IS ____ THAN PREVIOUS LR45

The ____ can be GREATER THAN(OVER) or LESS THAN(UNDER)

Fill out once for LONG and once for SHORT

WELCOME TO MY WORLD F...lol!

 

[Forexmospherian]

Ok F, but then PLEASE define the conditions IN DETAIL for LONG and SHORT ENTRY.

It is a fill in the blank:

PRICE IS _Long___ THAN PREVIOUS PRICE

PRICE IS _Short___ THAN LR15 - check time window

PRICE IS _Short__ THAN LR25 - enter possible scalp sell

PRICE IS _Short___ THAN LR45 - confirmed scalp sell

LR15 IS _short / under___ THAN PREVIOUS LR15

LR15 IS _short / under___ THAN LR25

LR15 IS Short / under____ THAN LR45

LR25 IS _Short / under___ THAN PREVIOUS LR25

LR25 IS _short under___ THAN LR45

LR45 IS _short / under___ THAN PREVIOUS LR45

The ____ can be GREATER THAN(OVER) or LESS THAN(UNDER)

Fill out once for LONG and once for SHORT

WELCOME TO MY WORLD F...lol!

Hope this helps

So price is going up - but LR 15 starts to go over - then 25 then 45 - scalp sell

On many quick scalps when pullback starts with 2- 3 pip fall only lr 15 might go over - but you can still look at entry with tight stop

ON some scalps that are slow the 15 and 25 might be over 1- 3 pips before the 45 gets there - but if time and other clues line up - like S & R etc - then you can still scalp sell - or all opposite for buys

Every scalp can be different - an with big moving pairs - like EJ / GJ - you might have to wait 6 - 8 pip fall for LR 45 to go over - whereas fisrst 2 quick Lrs are already over saying sell

With regards to lines?

Have you set then 3- 5 pips apart ??

I normally use time - rather than price - I find it better - but ideally would to prefer both in sync

Will find some other example on EJ to explain more

Off for tea now - 5 40 pm UK time

Out tonight - but should be around later


Regards


F

 

[Forexmospherian]

Example of importance of the 3 white Quick Lrs on scalps

1 min LR chart of EJ today with 3 quick white LRs - on just 2 scalps shown going in off the first one or 2 quick LRs rather than wait for the LR 45 ( thick white one here) can gain you an extra 1 - 3 pips a scalp .

On first example here the gap is easy 4 pips - although it lined up with a time window - have shown with candles - have preferred bars - but not much in it - although candles show better on my charts

 

[NVP]

hope you had a good week F ..........I've just discovered that some consultancy work i was pitching for in August has evaporated............ so must confess the temptation to try F/T trading is looming larger and larger come then .............


have a good weekend
N

 

[Forexmospherian]

hope you had a good week F ..........I've just discovered that some consultancy work i was pitching for in August has evaporated............ so must confess the temptation to try F/T trading is looming larger and larger come then .............


have a good weekend
N

Hi N

I suppose in a sense it always good to have "2 irons in the fire" so to speak -like 2 - 3 days a week consultancy work and then having the chance of doing a Wed -Friday FT trading FX for 6 - 8 hrs a day.

I was lucky not having to depend on all my income from going full time right away and so less pressure - but nowadays being able to trade 5 days a week at any time that suits me is not like work - its like an hobby - but knowing on good days I can easily earn a few thousand dollars - even on under 6 lots a pip - and yet going back 5 yrs ago - when I did not know so much as I do now I was continually putting myself under more pressure and compounding up to over 22 lots per pip - and then stressing when i had 10 pip losses.

I am quite happy to assist you on the scalping side - totally free of charge - although i am sure you have enough experience to make it pay from right away.

You will need a minimum $25 -30k if possible as initial capital and then you need only look at say 15 - 20% per month -ie 1% average per day - rather than having to maintain 35% + per month which can be very difficult until you have a few thousand live trades under your belt

Some of my best days I can have 3 or more bad trades - but having the time and a method that can easily generate me 25 trades a day - on average 5 - 8 good trades a day over over 5 pip net - and I am there.

Everyday can be so different - ie some days by 10 am - I have done my target - other days I need up to 4 -5 pm to get there - but although it can be frustrating - its still easier than the rush hour in London West End on a Thursday or Friday evening ;-)

I don't think it would be just a month to pick up all my method - but combining it with yours and your experience - I really do think 3 months maximum is all you need - especially if you have been following this thread over the last 6 months

Finally - you got what approx 5 yrs less of birthdays than me - so - "go for it" - and if after 6 months you are not saying to me - i should have done this years ago - then I will be surprised

Ready - when ever you are - got 3 more holiday breaks up to September - but never more than 10 days - and I understand you are off to the States - so we can get some practice in beforehand when ever you like

Regards


F

 

[TheRumpledOne]

Hope this helps

So price is going up - but LR 15 starts to go over - then 25 then 45 - scalp sell

On many quick scalps when pullback starts with 2- 3 pip fall only lr 15 might go over - but you can still look at entry with tight stop

ON some scalps that are slow the 15 and 25 might be over 1- 3 pips before the 45 gets there - but if time and other clues line up - like S & R etc - then you can still scalp sell - or all opposite for buys

Every scalp can be different - an with big moving pairs - like EJ / GJ - you might have to wait 6 - 8 pip fall for LR 45 to go over - whereas fisrst 2 quick Lrs are already over saying sell

With regards to lines?

Have you set then 3- 5 pips apart ??

I normally use time - rather than price - I find it better - but ideally would to prefer both in sync

Will find some other example on EJ to explain more

Off for tea now - 5 40 pm UK time

Out tonight - but should be around later


Regards


F

NOT AT ALL, F... you don't understand... perhaps I was not clear. I thought
"The ____ can be GREATER THAN(OVER) or LESS THAN(UNDER)"

Meaning your only 2 choices for filling in the _______ is GREATER THAN or LESS THAN. The _____ has to be one of those two choices UNLESS it is N/A not applicable. SHORT and LONG are NOT valid answers.

I need to know the position of price - that is how you fill in the blank... price is < or >!!!!

All those blanks need to be filled in ONCE for short entry. The if all those conditions are true, I know to go short. Ditto for long.

Can someone else explain this better so F doesn't waste his time?

Thanks F.

 

[TheRumpledOne]

....although candles show better on my charts

yes, much better..thanks, f!!

 

[TheRumpledOne]

"1 min LR chart of EJ today with 3 quick white LRs - on just 2 scalps shown going in off the first one or 2 quick LRs rather than wait for the LR 45 ( thick white one here) can gain you an extra 1 - 3 pips a scalp ."

F:

Once again, need the blanks filled in for this. You probably think I am dense. My goal is to get it exact. Not what I think you mean but exactly what you mean.

So if price crosses the 2 quick white LRs, do you wait for the candle to close to enter?

 

[TheRumpledOne]

F:

You mention gaining an extra pip?

That goes against the whole idea of scalping! Besides, technically you are daytrading and not scalping. Scalping is getting between the bid/ask and taking advantage.

I noticed that the solid white LR45 doesn't give false entries usually. But the price can criss-cross the quicker white LR15 and LR25 leaving you in drawdown.

But I am still learning and open to hearing all you have to say, F. So please continue...

 

[TheRumpledOne]

F:

You mentioned that it would be nice if I can code an indicator that would show you where the next opportunity is so you could catch more of them, right? If that's the case, then for every extra trade you get and assuming you make 3 - 5 pips, then you don't have to worry about that extra pip you get with the 2 fast LRs, right? I say that because, if I give you one extra trade a day, that covers 3 -5 trades, where you had to take that extra risk. Let's say I get you 10 extra trades... that's 30 - 50 pips. See how fast it adds up!!

If the LR45 has a higher win rate with less draw down, wouldn't that be the better trade overall?!

Just thinking out loud, F, not arguing...

 

[Forexmospherian]

Morning TRO

No problem with regards to your points

Need to go through them during today and will come back with hopefully the correct replies

Sorry about the misunderstanding there and I appreciate you need to get the information spot on for coding and will do my best to put it in black or white terminology

Regards


F

 

[watsone]

Thankyou Forexmospherian for the help your giving Tro.i appreciate it as i'm sure other members do along with the efforts of TRO to code an indicator that makes it easier for the rest of us to understand and implement your method of trading

 

[Forexmospherian]

Ok F, but then PLEASE define the conditions IN DETAIL for LONG and SHORT ENTRY.

It is a fill in the blank: For a SELL / Short For a BUY / Long - opposite

PRICE IS _Lower than___ THAN PREVIOUS PRICE

PRICE IS _Lower than___ THAN LR15

PRICE IS __Lower than__ THAN LR25

PRICE IS _Lower than___ THAN LR45

LR15 IS _Lower than___ THAN PREVIOUS LR15

LR15 IS __Lower than__ THAN LR25

LR15 IS _Lower than___ THAN LR45

LR25 IS __Lower than__ THAN PREVIOUS LR25

LR25 IS __Lower than__ THAN LR45

LR45 IS __Lower than__ THAN PREVIOUS LR45

So for a scalp sell - we need to see the LR 15 go over price for a start - price to go lower then the LR 15 go under the LR25 and then under the LR40 and then the LR25 go under the LR45 - ie a cross over of the LRs

For a scalp buy - the opposite - the LR 15 need to go under price - and then above the LR 25 - and then above the LR45 and then the LR 25 go above the LR 45 - ie a cross over again of the LRs in reverse

Hope this makes sense -

Regards


F

Hi Tro - and Watsone


Ok - TRO's part first


This is it again- as above with extra explanation

Remember though this is using all 3 quick white LRs and waiting for the whole sequence to occur - before an entry

I appreciate that is required for a coding system

But as I have pointed out - using a manual discretionary system - you can use just the LR15 or LR25 isn certain circumstances - as the "trigger " to enter - not wait for the whole sequence

But surely this part to code would be extremely complex and then other variables come into the equation besides purely LR's - ie time - S & R levels etc

Let me know if this now fits your criteria

Watsone - yes no problem - I am keen to see how much can be coded as my system is very complex - and that for me is one of the reasons it works with high probabilities - ie it factors in many variables that normal intraday trading methods overlook - as they are keen to keep all simple to appeal to the majority

Unfortunately -as we know its only top 10 -15% of traders who are able to get high probability consistent results - and to have an "edge" - needs an high level of complexity - that makes it difficult for newbie traders just be able to copy

I have no problem with time available etc - as I am really semi retired and have done extremely well out of this method for the last 7+ years - but know it cannot just be learnt in a few months and turn newbie traders in multi millionaires within 6 - 12 months

Major Magnum as been with it for over 7 months now and he went with live money about 2 months ago after a very successful demo stage. He's had the normal problems going from demo to live - and is not full time so cannot spend as much time as me - but every week he is gaining more confidence and understanding how psychology can sometimes stop you pulling the trigger when you need to after having a few bad scalps - just after you keep increasing your stake sizes - yes Sod's Law - the markets are brilliant at doing things like that

Regards


F

 

[Forexmospherian]

F:

You mentioned that it would be nice if I can code an indicator that would show you where the next opportunity is so you could catch more of them, right? If that's the case, then for every extra trade you get and assuming you make 3 - 5 pips, then you don't have to worry about that extra pip you get with the 2 fast LRs, right? I say that because, if I give you one extra trade a day, that covers 3 -5 trades, where you had to take that extra risk. Let's say I get you 10 extra trades... that's 30 - 50 pips. See how fast it adds up!!

If the LR45 has a higher win rate with less draw down, wouldn't that be the better trade overall?!

Just thinking out loud, F, not arguing...

Hi TRO

Understand your theory and your thoughts - but from my own experiences - it will not work out like that

Every scalp or short term trade can be different with so many different variable - I will not say they are all unique - but I could take say 50 next week and 45 would be different.

This is probably why for real accuracy and the "devil in the detail" stuff - simple cross over will not work consistently enough to give you the results we all want

ie - One month I could put all my stops say 4 pips - and get a 85% success rate

Another month I could widen my stops on the same currency pair to say 8 pips - and end up with a lower success rate of say 65%

The reason might be simple - I am just 4 mins early on all my entries - yes such a small difference can affect the results quite dramatically

I have a very open view to everything - and so will always look at all the alternatives etc - and even though my system can surely be improved - if it worked well for over 15000 live trades - I have to be careful to just change - for simplicity

Regards


F

 

[TheRumpledOne]

Well, F, at least for now, the LR45 is proving to be a winner. My observations tell me to make sure the LR45 has crossed at least 3 horizontal lines ( spaced 3 pips apart ) before considering entering a trade... 3 crosses will usually gross 6 pips, 4 crosses 9 pips, etc...

 

[TheRumpledOne]

Not sure if the LR15/25 gained anything over the LR45 this time.

 

[TheRumpledOne]

F:

Would you have entered LONG when the price crossed the 2 fast WHITE LRs?

 

[TheRumpledOne]

I changed the 3LR and 9LR multimeters in the upper right corner to show the number of LR lines indicating bull/buy or bear/sell instead of the difference. Since there is an odd number (3, 9), the indication will always be one way or the other.

In the 9LR history indicator at the bottom, you see 6 over and 3 under. The 9LR multimeter shows a RED 6.

Hope that makes sense to all watching.

 

[TheRumpledOne]

Counting lines saves a loss!