Intraday Trading the Forex market to make consistent profit

[TheRumpledOne]

The LRs are the simple part of the method / system - BUT - if you dont want to keep taking scalp trades every approx 12 - 18 mins etc - then the rest of the components need to go into the equation

Regards


F

Ok, now I am confused... I thought this WAS a scalp system?!?!?!?

 

[Forexmospherian]

Ok, now I am confused... I thought this WAS a scalp system?!?!?!?

Morning TRO

Yes it is - but all down to your definition of scalping

I think you mentioned the other day - scalping was looked upon a very small moves - even between old bid and ask prices - completed in minutes - ie scalp for say 2-3 pips in under 1 or 2 mins

Other longer term and position traders look upon a scalp as being trading in the "noise" and that may be all trades that only target under 50 pips - whether they take 15 mins or 15 hrs.

Personally - I am in to the most profitable type of scalping - ie Sweet Spot Scalping - or the 3 S's - SSS - targets 7 -25+ pips all within 10 -15 mins in duration.

These moves can make RR's of 2 to 5 - so very profitable and therefore you can take multi trades per day - but not like pure scalping were you are stuck at screen for long hrs and taking 40 -100 trades a day - costly and not having good RR's

So I have set up my LR system to look for more than a 2- 3 pip scalp - ideally 7 -25+ pips - and that target normally requires more than just the 3 white quick LR's

So its 100% for sure a short term Intraday FX trading strategy - allowing you to take normally 5 -15 trades on just one pair over say a 8 -12 hr main session window.

With multi pairs 15 -25 trades a day is certainly on - but I am happy normally with just 2 trades an hour

Also the 3 quick white Lrs allow you to scalp with no other major clues - and you still can be profitable

BUT

To get 70 -85% win rates with RR's from 1 to 5 on multi trades - LR's alone in isolation are not enough

That's why I use - Time - S & R - Price action and LR price structure - correlations - etc etc.

Please tell me - does that make sense to you - or is this more confusing ?

Regards


F

PS - will check out video 2 questions and respond later on today

 

[TheRumpledOne]

Morning TRO

Yes it is - but all down to your definition of scalping

I think you mentioned the other day - scalping was looked upon a very small moves - even between old bid and ask prices - completed in minutes - ie scalp for say 2-3 pips in under 1 or 2 mins

Other longer term and position traders look upon a scalp as being trading in the "noise" and that may be all trades that only target under 50 pips - whether they take 15 mins or 15 hrs.

Personally - I am in to the most profitable type of scalping - ie Sweet Spot Scalping - or the 3 S's - SSS - targets 7 -25+ pips all within 10 -15 mins in duration.

These moves can make RR's of 2 to 5 - so very profitable and therefore you can take multi trades per day - but not like pure scalping were you are stuck at screen for long hrs and taking 40 -100 trades a day - costly and not having good RR's

So I have set up my LR system to look for more than a 2- 3 pip scalp - ideally 7 -25+ pips - and that target normally requires more than just the 3 white quick LR's

So its 100% for sure a short term Intraday FX trading strategy - allowing you to take normally 5 -15 trades on just one pair over say a 8 -12 hr main session window.

With multi pairs 15 -25 trades a day is certainly on - but I am happy normally with just 2 trades an hour

Also the 3 quick white Lrs allow you to scalp with no other major clues - and you still can be profitable

BUT

To get 70 -85% win rates with RR's from 1 to 5 on multi trades - LR's alone in isolation are not enough

That's why I use - Time - S & R - Price action and LR price structure - correlations - etc etc.

Please tell me - does that make sense to you - or is this more confusing ?

Regards


F

PS - will check out video 2 questions and respond later on today

GOOD DAY, F:

Thanks again for taking the time to respond.

It makes sense to me. Now, let's figure out the pieces so it can make sense to the computer via indicator(s):

I have the 3LRs ( I think )
I have the time - when to trade ( simple )
S&R - has not been defined precisely
Price Action - has not been defined precisely
LR price structure - red/yellow/green (I think)
Correlations - we haven't discussed these, yet.

F, you and I have different perspectives - you see the whole and I am looking at and for pieces to assemble the whole. You see the forest and I am looking for the trees.

And the other thing, F, is you may not be aware of some of the details of the decisions you make. You don't think about trading anymore, you just trade. It may be difficult and possibly detrimental for you to think about this.

Some people may think you're hiding something or not willing to share it all. That's not my view at all. I think you have been more than gracious with your knowledge and time. Once again, I appreciate you taking the time and effort to humor me.

 

[TheRumpledOne]

F:

Since you mentioned the LR structure again, I coded the RYG multi-meter to display the structure of the red, yellow and green LRs on all chart periods.

And the LR45 is proving to be profitable.

 

[Forexmospherian]

GOOD DAY, F:

Thanks again for taking the time to respond.

It makes sense to me. Now, let's figure out the pieces so it can make sense to the computer via indicator(s):

I have the 3LRs ( I think )
I have the time - when to trade ( simple )
S&R - has not been defined precisely
Price Action - has not been defined precisely
LR price structure - red/yellow/green (I think)
Correlations - we haven't discussed these, yet.

F, you and I have different perspectives - you see the whole and I am looking at and for pieces to assemble the whole. You see the forest and I am looking for the trees.

And the other thing, F, is you may not be aware of some of the details of the decisions you make. You don't think about trading anymore, you just trade. It may be difficult and possibly detrimental for you to think about this.

Some people may think you're hiding something or not willing to share it all. That's not my view at all. I think you have been more than gracious with your knowledge and time. Once again, I appreciate you taking the time and effort to humor me.

Hi TRO

Actually you are correct on so many points you have mentioned there

I dont have any problem sharing my system - 4 -6 yrs ago it might have been totally different - as I would have been worried about to many finding out etc etc - but to be honest even if 30% of all retail traders around the world used it in the next 2 years - would it really have that much effect on the market ? - after all if retail trading is well under 10% of total FX markets - some say only 3-4% - we are just ants against Elephants

Also as you know I am semi retired - 61 yrs old next year - ( still young though) and cannot see me keeping this up after I take my private pension in the next couple of years - so I would love for it to be coded - made easier - and shared with genuine FX traders - who want a method that works

Watched you video 2 - twice now- noted your questions and will be answering later on today

I appreciate for you to go further - i need to be as black or white as possible - thats difficult with trading being such a "grey " area - with many rules being able to be ditched at certain times and situations

Will explain more about the Lrs on different time frames as well - but for me the 1 min is my key driver - that's were its starts for me ( saying that no 5 second tick chart - but too complex and scalp bias to be intraday enough)

Back with more later

I also appreciate the time you are spending - so like you want us to progress as far as we can

Regards


F

 

[Forexmospherian]

EJ

Earlier scalp buy with arrow - and then arrow with circle and perfect LR cross over and trend line break - brilliant

Have a look at this on the EJ in last hour TRO

an AAA+++ Scalp Sell - see arrow and circle etc and a crossover

Nice - that was a 85% probability one for sure

 

[BadRobot]

Can someone confirm the time windows please? I am not sure mine are correct. I am trying to code some indicators to make it visually easier. There are a lot of lines and on a 1 min its a bit hard to get a concise view.

I have attached my chart. Indicators from bottom:
Trade Time (trade in blue).
LR Slope (Tells me if LRs are sloping up or down, I am only using it with the 3 fast ones at the moment)
LR PA (Tells me if price is above or below the LR Line, This one is the 3 fast whites)
LR PA (I have set this one for the medium LRs)

Looking at when things line up the time windows really doesnt seem to make that much difference to potential success or otherwise. Thats why i need to check if they are correct.

 

[Forexmospherian]

Can someone confirm the time windows please? I am not sure mine are correct. I am trying to code some indicators to make it visually easier. There are a lot of lines and on a 1 min its a bit hard to get a concise view.

I have attached my chart. Indicators from bottom:
Trade Time (trade in blue).
LR Slope (Tells me if LRs are sloping up or down, I am only using it with the 3 fast ones at the moment)
LR PA (Tells me if price is above or below the LR Line, This one is the 3 fast whites)
LR PA (I have set this one for the medium LRs)

Looking at when things line up the time windows really doesnt seem to make that much difference to potential success or otherwise. Thats why i need to check if they are correct.

Hi BadRobot

Main time windows - 9 mins either side the 30 min and 60 min frame changes

Key time in time windows-

On the hr change - - by then a move might have stopped or peaked

9 mins past hr change - could be a reversal trade

21 mins past hr change - move could be stopping

30 min - half hr change - same as hr change - but hr change a stronger time window

39 mins past hr change - end of half hr time window - to take any new scalps

51 mins past the hr change - or 9 mins to new hr change - yet again a move might be slowing down or stopping - ready for a new move after the hr change

Hope that helps - If you check any pairs - most interim highs or lows will normally be around the times mentioned


Regards


F

 

[Forexmospherian]

Hi TRO

Re Video 2 questions and queries


1. Yes more clarity needed - understand and will try and explain by one of my own videos - or in as simple clear terms as possible. Unfortunately I have never made a video before - but will check out your link etc

2.Number of conditions - this is a hard one - as yes it could be very lengthy and with several conditions then - out trumping other standard rules. I have mentioned to MM in the other thread many times - trading can be so grey and is not a simple yes or no or black or white. Basically every new scalp can have new unique conditions due to the amount of variables we are dealing with.

For me this is why 80% + of all retail traders fail over time - and I think in many cases the ones that last longer might be because they have great money management methods - but with low number of trades being taken - dont realise until say 2- 3yrs or after say 200 trades that their method is 50/50 at best.

3. Can you tell me the UK time for that scalp buy on the EU in your video - I blew the chart up but could not read the time to nearest 15 mins.? I can then check it with my set up

4. Yes - sometimes I might wait another minute or longer to take an entry. I would prefer to have more clues then jump in 4 mins too early and find out i cannot do the trade with a 5 pip stop. The TW - time windows will never be 100% accurate but within 9 mins either side normally is in the ballpark etc

5 Instead of using lines set 3 or 5 pips apart - I use time and previous dynamic and horizontal S & R's to judge pullbacks etc etc. if I think we are in a bull bias and going up and we get a scalp sell - I expect to see a HL from previous supports - but of course the interim S & R levels ideally need to match up with the time windows . I try and be accurate as possible as I want tights stops for better RR's and for me any move over 7 pips is really another scalp .

6 Yes noticed the changes you have already made. With me being used to always time and LRs over last 7 -8 yrs - I still find it easier - but for any trader not used to my ways needs more assistance for ease of use.

7. With regards to other time frames - yes I do use the 30 min and 1 hr frames - purely for the bigger picture - on levels and trends. i look upon the longer 3 lrs on my 1 min chart representing a view from longer times frames -easily and hr to 2 hrs . If you use the 9 LR settings on a 30 min or 1 hr chart - you are getting a longer perspective - but i find not so accurate - as of course more variables are involved than on a 1 min chart.

I need to explain more on the S & R -dynamic and horizontal - 30 min interim high or low levels and of course false game play moves in my BTTZ areas - ie bermuda triangles - ie price goes in - but were it come out is anybodies guess ;-)

I think on the LRs themselves - every day you are picking it up more

I hope you checked out the EJ on that perfect scalp from approx 2 30 -3 00 pm Uk time on wards

That move had so many clues it was a AAA+++ scalp for me and was over at 3 30 TW with a 25 -30 pip fall.

Hope this helps again - and now back to trying to simplify my answers etc etc


Regards


F

 

[TheRumpledOne]

Quite the roller coaster ride.

 

[TheRumpledOne]

Price bounced of previous day's midpoint, crossed the previous day's open and is rising.

Price also crossed the 3 white LRs, too.

TAKE YOUR PICK!!

 

[Forexmospherian]

Good Morning TRO

Got to pop out in 10 mins - but will post my EJ chart a bit later along with some more explanations etc etc

Been nice for me again - but saying that - 95% of the time it is ;-)

Have a good day


Regards


F

 

[Forexmospherian]

100+ pips there on 6 trades - with 5 marked with time

I made 4 of those trades and were called in thread at times

Hi TRO

6 marked trades on chart - 5 marked with exact time in TW's

I only took 4 of those scalps - but still achieved my daily target - even though not around - pre UK lunch time

Maybe the times shown assist with what happened at the turns etc

Also shown my levels - which are important but not based on Fibs or any traditional method - all based on dynamics of last 1 - 4 hrs


Regards

F

 

[TheRumpledOne]

Good Day F
Care to DEFINE how to determine these dynamic levels?

One of the first indicators I had converted to MT4 was my TRO_DYNAMIC_SR.

I have also coded a dynamic breakout indicator. So I can work with dynamics as well as statics.

Waiting patiently for the details...

 

[Forexmospherian]

Good Day F
Care to DEFINE how to determine these dynamic levels?

One of the first indicators I had converted to MT4 was my TRO_DYNAMIC_SR.

I have also coded a dynamic breakout indicator. So I can work with dynamics as well as statics.

Waiting patiently for the details...

Hi TRO

That's good because I depend on the dynamics and interim levels more than the traditional daily pivot levels - and also think they can be more accurate than Fibs or Murrey lines

Many price areas sharing both dynamic S & R's and horizontal supply /demand S & R's are for me stronger than the ones most traders are guided by.

I will use the EJ chart as an example and start on it later on or first thing in the morning - all depending on England's first footie match in the World Cup

Enjoy your weekend

Regards


F

 

[Forexmospherian]

Hi TRO

This is a EJ 30 min semi naked chart for the 5 trading days of last week

I use both horizontal of fixed levels as well as dynamic interim intraday levels not based on any particular traditional formula

When a dynamic level matches up with a previous days horizontal level - that will be a stronger S or R

The EJ fell approx 230 pips last week and in those 5 trading days - I had approx 14 levels of which 9 held more importance.

As an approximate that's a level every 12 -14 pips - with normally a minimum distance of 5 -7 pips and maximum 23 - 27 pips

That fits in perfectly with my scalp targets - ie quick non direction scalps - 5 -7 pips and then SSS -sweet spot scalping in time windows with targets of 10 -25 pips.

I have marked the stronger S or R areas were dynamic match horizontal with yellow circles.

In a normal week on the EJ - I would expect to average 5 scalps a day from just that pair - ie 25 scalps in the week - but with the market being dynamic - this is never set in stone - ie I might take 12 scalps on the EJ in one day if the pair moves 130 -150 pips

Even though the EJ was in a down trend over the 5 trading days - there would still be at least 8 - good buy scalps that would add up to over 150 pips - even though the net drop was approx 230 pips.

That's what many swing traders find difficult to understand - ie taking contra trades against the daily or weekly trend - but for me as a scalper as I have said before - a trend to me is any move that goes over 3 pips. That does not mean I chase just 3 - 5 pip trades - but the scalp buy that started late Thursday lasted over 7 hrs and moved up approx 80 pips - and excellent contra trade.

I will wait for any questions before I move on - but a key price level for me on Friday on the EJ was 138 30 -32

On all levels I allow 1- 5 pips - some can be within just 1 or 2 pips - whereas on major Monthly / weekly pivot levels you might have to allow 10 -15+ pips to know whether they are properly breached

Have not got a clue what the FIB or Murrey levels were on the EJ last week - and really I should have as knowledge is power - the more info I have the better - i am definitely into more information overload rather than keep it simple brigade - but that's just me - so I do respect the other view - and really its what you are happy with and what works for you as a trader

OK fire away with the questions - and hopefully I can answer them


Regards


F

Posted in other thread by mistake - so will stay with this one on the questions and replies etc

Regards


F

 

[TheRumpledOne]

Good day F:

It has been a LONG WHILE since you mentioned ANY MOVE OVER 3 PIPS IS A TREND!

Does that mean you will exit a trade if it moves 3 pips against you? I don't think so but I will wait for your answer. Did I ask this before?!

 

[Forexmospherian]

Good day F:

It has been a LONG WHILE since you mentioned ANY MOVE OVER 3 PIPS IS A TREND!

Does that mean you will exit a trade if it moves 3 pips against you? I don't think so but I will wait for your answer. Did I ask this before?!

Well my normal stop size is 3 - 7 pips - which does include broker spread

So on pairs like EU and AU with average 0 3 - 1 pip spread - any move going against me over 3 pips plus spread - I am out of - because even though they might stop and turn and go my way again by 7 -10 pips - there is also the chance the move might carry on for 15 -25 pips against me as well

EA and say GJ with 2 to 4 pip spreads - I need then 6 and 7 pip stop sizes - knowing if i have caught the move correctly - the only move against my entry will be 2- 4 pips including that spread as well.

I know traders laugh at the idea of 3+ pip trends- even though it's a mathematical definition - and when i am in good scalps of say 12 + pips - I will allow pullbacks of 4 pips and still stay with the trade - but to be safe take 70% stake off - so I have profit then - what ever happens . That allows me to catch larger moves - ie take 70% off at 15+ pips and even if it then retraces 9 pips - I can live with that on 30% stakes and then if it carries on my way - I might then catch a 25 or a 50 or even in some cases 300+ pip move.

Stops are 100% under control - targets are really out of your control - so traders need a method to keep stops and losses to minimum amounts - whilst having the opportunities of staying with the big moves

Regards


F

 

[TheRumpledOne]

"Stops are 100% under control - targets are really out of your control - so traders need a method to keep stops and losses to minimum amounts - whilst having the opportunities of staying with the big moves "

WISE WORDS, F!

 

[TheRumpledOne]

F:

Let's change direction. Tell me what you need to know to determine whether or not a trade is possible. Then maybe I can code an indicator to do that.

After all this time, I don't think it is possible to code your method completely in MT4. I think it would have to be coded in an AI langauge so the result is self teaching/learning.