Intraday Trading the Forex market to make consistent profit

[itspossible]

^MUCH APPRECIATED^
I have always been looking for a good safe method to be honest.I know you dont do indices but i will run my method past you to see what you think.i have not copied this from anyone and i will bin it if i get too frustrated or it doesnt work. i am on a demo at the moment and i have made a little money over 2 days.i have 2 or 3 indices up and i look at them live.dow,ftse dax.i am looking at how they correlate with each other and im try to sense strength and weakness.say for instance the dow is 17573 and the ftse is 6567 i watch the 2 prices and i try and determine how they are correlating together.the dow may be rising slightly and the ftse may be only up slightly and not doing much.my alarm starts to go and i look at the ftse as being weak.so i am looking to short the ftse at 50pence per point.i am wanting the dow to drop-the ftse should then break.i build a position by scaling in say 6 x 50p(spread is 1).if everything goes in my favour i may scale out taking my positions off for a profit.if positions are going against me i dont really worry unless the correlation changes.so i may take 3 positions off for profit and have 3 that are not doing much .i am obviously wanting the 3 losing or stagnating positions to come into profit.my time frame at the moment is about 3-10 mins-profit can be 3-10 pounds or more.i do not have any financial targets at the moment but would be happy with about £50 for say 2-3 hrs work.it may be a pipe dream but we will see how it goes.obviously if my positions go pair shaped i would just cut and run.F what is your view on that.be as frank as you like mate.
so in essence i am a momentum trader and im not trying to pick tops/bottoms of anything.i just want to take a little bit and get out.i can then re enter later if need be and adopt the same method.
i should add that if both the ftse and dow are strong on the day i will be buying on pullbacks and not fighting or shorting.
if the ftse and dow are weak on the day i will be shorting on rises.hope that makes sense .
on the day is the key as everyone knows we are in a BULL.

 

[Forexmospherian]

Will come back to you on your plan IP

Meanwhile -

 

[montmorencyt2w]

Hi Montmorencyt2w


Thank you for some positive comments and really pleased you managed to read all through this thread and find it interesting.

Yes I have finished my year on the live intraday thread now ( last week ) and will be away on a short break this month.

Not fully decided on my next plan - as what ever I do I would still be doing my own notes during my trading sessions on levels and bias etc on 6 to 9 pairs - even if I only trade normally 3 to 5 pairs

I got a lot of stick at the start simply because I was trying to call live scalps that might only last 1-5 mins ( ie 1 -7 pip) and not realising many followers would only see the call - after it finished and I was out the trade.

This was due to the normal delay of me posting and the thread updating - that could be anything from 30 secs to 5 mins in busy periods.

So in busy times I asked all follower to update and refresh browser every 30 secs to catch the comments and then gave out my chart with time windows and linear regression settings - so that all could see what I was actually doing.

After a few months I do think many then realised I was not a fraudster / con artist - selling rubbish - ( all my advice is totally free) but I proper full time intraday trader. I improved the other thread by including times on posts along with levels in advance of next moves with prices I would be looking for retraces and break outs etc.

Then with the progress of one student - Major Magnum - many members then realised it was possible to learn and copy and become successful etc. It took MM over 8 months to fully get there ( he had over 18 months of basic FX knowledge beforehand he started with me ) and just recently MM took a 3k demo account up to $100+ within 8 days - ie 3300+ % increase.

He's been trading the method live for over 4 months - but maybe ran too quickly before walking for a start ( on initial compounding ) and so needed to go back to small stake size of under $5 a pip rather progress at $20 + until he has 1000 live trades under his belt

Saying that he took a live £1k account up 27% in one trading day - with over 20 trades - all stops under 5 pips - all small stakes size - low drawdown and over 80% win rate - AND POSTED THE GENUINE RESULTS ON THIS THREAD

That must really get up the noses of all "dissers" / haters and traders who think - f**k all new traders - let them spend 5 years and lose 4 accounts etc - because thats where my winning come from.- Yes lovely people - ie the caring sharing type ;-)

Well I had help on my journey over 9 years ago - that got me looking at everything differently.

Trading is simple - ie buy low - sell high - make money.

Trouble is you get simple results - ie 2% per month - 4% and traders think they are good

We all know 85-90% of all FX traders will lose and give up at some time - so surely it cannot be that easy ??

The truth is the Industry is totally corrupt - and is brilliant at deceiving all and sundry - proved by all what's been happening recently with massive fines on banks

Super computers want your money - they are not going to let you have loads of wins and hardly any losses without you having a few edges that can keep you in the 10% winners corner.

I have many - simply because of the time and study I have devoted getting there.

My trouble is - I discovered FX trading maybe 10 years to late in my life

I fully retire within next few years ( Ok might do the odd 5 days a month if I am still well and fit) but don't want to spend 30 -50 hrs a week trading.

My Father in Law is 94 and still does 2 new crosswords every day. Maybe at 75 or 80 - I will still be scalping now and again - but hope to be sailing in the Med instead ;-)

I will have to decide in the new year what my next course of action will be - so at least for 3 - 5 weeks I will still be around

I have not updated my years performance so far but can confirm on over 190 trading days I traded - I did not have one losing day.

That says something - ie I have a special way .......... and it works.

Maybe only 7 out of every 10 traders who try and learn it over say 6 -9 months will be successful with it ( every 1000 live trades - you should get better ) - but I will be delighted if I find another 9 like Major Magnum before I sail off into the distance

Hope that helps - and all the best on your new trading journey

Regards


F

Hi F, and many thanks again for the typically (for you) open and honest reply.

As well as your actual trading methods, I've been very interested when you touched on the psychological aspects of going to a much larger account and trading-size, and you were honest enough to specify what you think are your own personal limitations in that area.

If you find time, and it's obviously not a priority, it might be of value to some or many of us, if you were to start a separate thread on the psychology of significantly growing an account.

Those of us who have never traded an account that size (but sincerely hope to one day! ) might actually find it hard to believe that it could be that difficult. I do believe it, but I don't fully understand why it should happen, e.g. if we are still only risking the same percentage on each trade, and if we have stop losses in, why should it be so much more alarming to see the P/L going south at a high rate of knots?

I do know from experience that something happens when you first go from a small live but still play account to a slightly larger and then even larger one, that different things start to happen. Rashness and overconfidence can take over. But I think what you were describing was something different.

Anyway, if you were interested in starting a specific thread about it at some point, maybe it might be suitable for the psychology section of the forum.

Anyway, thanks again for a very good read, but much more important, for making me think a little more deeply. :smart:

 

[Forexmospherian]

^MUCH APPRECIATED^
I have always been looking for a good safe method to be honest.I know you dont do indices but i will run my method past you to see what you think.i have not copied this from anyone and i will bin it if i get too frustrated or it doesnt work. i am on a demo at the moment and i have made a little money over 2 days.i have 2 or 3 indices up and i look at them live.dow,ftse dax.i am looking at how they correlate with each other and im try to sense strength and weakness.say for instance the dow is 17573 and the ftse is 6567 i watch the 2 prices and i try and determine how they are correlating together.the dow may be rising slightly and the ftse may be only up slightly and not doing much.my alarm starts to go and i look at the ftse as being weak.so i am looking to short the ftse at 50pence per point.i am wanting the dow to drop-the ftse should then break.i build a position by scaling in say 6 x 50p(spread is 1).if everything goes in my favour i may scale out taking my positions off for a profit.if positions are going against me i dont really worry unless the correlation changes.so i may take 3 positions off for profit and have 3 that are not doing much .i am obviously wanting the 3 losing or stagnating positions to come into profit.my time frame at the moment is about 3-10 mins-profit can be 3-10 pounds or more.i do not have any financial targets at the moment but would be happy with about £50 for say 2-3 hrs work.it may be a pipe dream but we will see how it goes.obviously if my positions go pair shaped i would just cut and run.F what is your view on that.be as frank as you like mate.
so in essence i am a momentum trader and im not trying to pick tops/bottoms of anything.i just want to take a little bit and get out.i can then re enter later if need be and adopt the same method.
i should add that if both the ftse and dow are strong on the day i will be buying on pullbacks and not fighting or shorting.
if the ftse and dow are weak on the day i will be shorting on rises.hope that makes sense .
on the day is the key as everyone knows we are in a BULL.

Morning IP

Regarding you strategy

As you know I have never traded the Dow / FTse / Dax etc - so can only pass on my tips from FX

If you scalp - forget main bias

For example the EU as been falling last 6 months over say 1500 pips - but during that period I have easily made over 1500 pips - from scalp buys ;-)

Any move over 3 or 5 pips in FX is profitable - with low spread costs and working from the coalface on a tick or 1 min chart

I appreciate you are not wanting to catch tops and bottoms - and are more momentum - so use the 30 min rules etc on changes of directions etc and be prepared to both scalp buy and sell - not just one direction - as thats what catches out many day traders - their bias interferes with their trades


Hope that is a bit of help for a start - otherwise see how you get on this next few days - as your idea then should still be a goer if traded correctly

GL

Regards


F

 

[Forexmospherian]

Hi F, and many thanks again for the typically (for you) open and honest reply.

As well as your actual trading methods, I've been very interested when you touched on the psychological aspects of going to a much larger account and trading-size, and you were honest enough to specify what you think are your own personal limitations in that area.

If you find time, and it's obviously not a priority, it might be of value to some or many of us, if you were to start a separate thread on the psychology of significantly growing an account.

Those of us who have never traded an account that size (but sincerely hope to one day! ) might actually find it hard to believe that it could be that difficult. I do believe it, but I don't fully understand why it should happen, e.g. if we are still only risking the same percentage on each trade, and if we have stop losses in, why should it be so much more alarming to see the P/L going south at a high rate of knots?

I do know from experience that something happens when you first go from a small live but still play account to a slightly larger and then even larger one, that different things start to happen. Rashness and overconfidence can take over. But I think what you were describing was something different.

Anyway, if you were interested in starting a specific thread about it at some point, maybe it might be suitable for the psychology section of the forum.

Anyway, thanks again for a very good read, but much more important, for making me think a little more deeply. :smart:

Hi Montmorencyt2w

Yes - I will look at doing that in the psychology section - as I have never read anywhere about traders financial walls in the way I mean

Good Trading


Regards



F

 

[Fugazsy]

Great thread, I only read a few initial posts, I will read later on, thank you, I know you mean business

 

[Forexmospherian]

Great thread, I only read a few initial posts, I will read later on, thank you, I know you mean business

Thank you Fugazsy

I wish you well on your journey and if I can be of any help on short term FX Intraday trading - then no problem - just fire away with your questions after you have gone through this thread and check out my live intraday trading one

All the best


Regards


F

 

[Fugazsy]

Thank you Fugazsy

I wish you well on your journey and if I can be of any help on short term FX Intraday trading - then no problem - just fire away with your questions after you have gone through this thread and check out my live intraday trading one

All the best


Regards


F

Thank you for your welcoming and generosity......I will read and follow , just tryed a little trade on your live calls thread....only +4 pips, but I was not going to risk more than that...

 

[Fugazsy]

Clarifying points for me please

If only it was so easy

Its a skill - that can be taught - but to accomplish it you do need lots of practice and to know what your are actually looking for

A perfect scalp entry - can easily be achieved under 5 pips - including 1 - 2 pip stake as well - and then can lead to 7 -25 + pips all within 10 - 15 minutes.

So you have low risk and a possible RR of over 3 or 4 - all within 15 mins - - that's efficient trading

I call it Sweet Spot Scalping - or SSS

To find the entry price within 1 or 2 pips requires total focus and many clues to assist on your decision

1. We need to have price moving up or down the previous 30 mins - with at least 2 or 5 mins of good movement

We are looking for a trend in the last 30 minutes (lets say long, so it will be clear to me) and we would like it to accelerate in the last 2 to 5 minutes.

2. It needs to be ideally in a time window

Sorry not clear

3. Price need to hit a S or R - it can be horizontal - of any nature - ie fib level or just a scalp interim level - or it might be a dynamic S or R level - off a trendline or a strong LR / MA - etc

Prices need to pull back and find support on any TA that we consider, which will be our potential SSS

4. Ideally price need to be OB / OS on under 30 min frames

The SSS ideally OS from 30 seconds to 30 minutes time frame

5. Is there any divergence going on ?
Divergence

6 Are we stopping for a LH or a HL ?

The SSS an HL of the trend up

7. Are we in a fade out or false move - I did post a GU chart on I think Friday of a perfect false wave - set up to confuse and catch traders out

Prices bounces at SSS, showing a reversal pattern.

8. Will price structure support my planned scalp ??
Sorry, not sure about this one

9 Have we breached under or over a 1 min trend line and done a HH and HL in under 4 minutes?

A breach under the SSS level and made an HH under 4 minutes (does the HH needs to be above the SSS?)

10 Have we gone over 30 mins without a new interim low or high ?-

Sorry not clear

I can go on - but out of just 10 things to look for - if you get over 5 or 6 - its looking good

Over 7 - brilliant - under 3 - not enough

So.........

We enter the scalp

We need to be in profit ideally under 2 mins - even if its just 1 pip up

Good entries will see profit up by 3 - 5 pips in under 4 minutes

Expect a pullback - allow 1 or 2 pips under entry - but not 3 or 5 - that shows your entry is wrong

Targets ?

Watch your stop watch and PA -

Look for opposite correlations and multi pairs also stopping and turning

OK - you get it wrong - and you only make 4 pips and you take profit

No problem - thats still a win even if not quite a RR of 1

You get it right ........... great - and after 10 - 14 pips you take 70% off - lock in your 30% stop in say 2 pips of profit - and then move on

There are multi ways to play it - but if that entry is nor right - you might end up with a loss

Every move over 7 pips can be another trade for me - if need be

You can end up getting there - but it will not happen under a year or so - any skills take a lot of hard work and practice to get to the level you are after

Good Luck - and I can assure you after you can read PA at the "coalface" - it all gets easier

Hi F.

I would like to make sure I understand before I continue, please see what I understood in red and confirm if you do not mind. Thanks,

Regards

 

[Forexmospherian]

Hi F.

I would like to make sure I understand before I continue, please see what I understood in red and confirm if you do not mind. Thanks,

Regards

Hi Fugazsy

Will try - might need to go into more detail after first attempt

1.- yes exactly - a quick finish ideally

2.9 mins either side the 30 min and 1 hr frame change - ie 2 51 pm to 3 09 pm etc

3. potential for opposite move - ie hits a barrier - and then retraces - we want the retrace normally - but if it breaks the barrier - we carry on with trade in same direction as previous to the SSS area

4 and 5 - yes O/S or OB - ie oversold or overbought on small frames and diverengence when a oscillator like a RSI is doing opposite to price at the time in a time window RSI going up as price as dropped

6 we would stop for a scalp buy if we see a HL than previous and then a HH on a 1 min bar or candle chart

7 - no a false wave of going wrong way to the direction we will want on the new scalp - ie like a scandavian flick in rally driving - ie setting the car up in the wrong direction to turn and go round an hairpin bend as an analogy

8 Price structure - based on my 1 min charts with linear reagressions - needing the longest setting under price for price to rise and opposite for price going down- check out on some charts in the thread

9 a HH is we expect a retrace up and a buy on new SSS or LL if a sell on new SSS

10 Any level with a new session high or session low - if the price is not breached or passed through in 30 mins - then favours a reversal for next 30 mins

After 1 hr it can try that interim session high or low again


Hope that helps - look out in next 2 days or so for some live examples I will call - and then see if you spot the clues mentioned

Remember it as to be on a 1 min chart or even a tick chart - a 3 or 5 or 10 min chart too slow

Regards


F

 

[Fugazsy]

Hi Fugazsy

Will try - might need to go into more detail after first attempt

1.- yes exactly - a quick finish ideally

2.9 mins either side the 30 min and 1 hr frame change - ie 2 51 pm to 3 09 pm etc

3. potential for opposite move - ie hits a barrier - and then retraces - we want the retrace normally - but if it breaks the barrier - we carry on with trade in same direction as previous to the SSS area

4 and 5 - yes O/S or OB - ie oversold or overbought on small frames and diverengence when a oscillator like a RSI is doing opposite to price at the time in a time window RSI going up as price as dropped

6 we would stop for a scalp buy if we see a HL than previous and then a HH on a 1 min bar or candle chart

7 - no a false wave of going wrong way to the direction we will want on the new scalp - ie like a scandavian flick in rally driving - ie setting the car up in the wrong direction to turn and go round an hairpin bend as an analogy

8 Price structure - based on my 1 min charts with linear reagressions - needing the longest setting under price for price to rise and opposite for price going down- check out on some charts in the thread

9 a HH is we expect a retrace up and a buy on new SSS or LL if a sell on new SSS

10 Any level with a new session high or session low - if the price is not breached or passed through in 30 mins - then favours a reversal for next 30 mins

After 1 hr it can try that interim session high or low again


Hope that helps - look out in next 2 days or so for some live examples I will call - and then see if you spot the clues mentioned

Remember it as to be on a 1 min chart or even a tick chart - a 3 or 5 or 10 min chart too slow

Regards


F

Forexmospherian

Thank you, yes a chart will make things cleared, looking forward to them. Cheers.

 

[Fugazsy]

Forexmospherian

Do you think your method can be summaries in a draft guide? I went and read the first 20 pages only to find most of your responses to justify to others your method which I feel has great merits.

If you do, could you please send it to me ? Thanks

F.

 

[Forexmospherian]

Forexmospherian

Thank you, yes a chart will make things cleared, looking forward to them. Cheers.

Over 20 charts already in the thread

Please check back over the thread and last 25 -30 pages - as many shown there to TRO - plus all settings in the first 20 pages or so

Regards


F

 

[Forexmospherian]

The devil is in the detail

It is a complex method - thats why its possible to get great accuracy.

It took Major Magnum over 2 months to be carrying it out and then between 6 and 8 months getting the desired skill level

One of the reasons maybe 80-90% of all FX traders fail is because they keep it simple and think any system can be learnt within a month

Unfortunately nobody will be good at this method under at least 1000 live trades and at least 500 demo's

It really does take months and months of study and hard work to get to even a basic level

I am now over 14k live scree hrs and over 16000 live trades - and I reckon I have improved the last 3 years after getting over 10k trades

Please trust me - if you are looking for a quick fix or an easy way - its not this method - its complex and takes loads of practice to get there and thats why I recommend you already have at least 12 -18 months of basic Forex knowledge etc behind you

Regards


F

 

[Fugazsy]

Over 20 charts already in the thread

Please check back over the thread and last 25 -30 pages - as many shown there to TRO - plus all settings in the first 20 pages or so

Regards


F

F.

Thank you.

F.

 

[Fugazsy]

The devil is in the detail

It is a complex method - thats why its possible to get great accuracy.

It took Major Magnum over 2 months to be carrying it out and then between 6 and 8 months getting the desired skill level

One of the reasons maybe 80-90% of all FX traders fail is because they keep it simple and think any system can be learnt within a month

Unfortunately nobody will be good at this method under at least 1000 live trades and at least 500 demo's

It really does take months and months of study and hard work to get to even a basic level

I am now over 14k live scree hrs and over 16000 live trades - and I reckon I have improved the last 3 years after getting over 10k trades

Please trust me - if you are looking for a quick fix or an easy way - its not this method - its complex and takes loads of practice to get there and thats why I recommend you already have at least 12 -18 months of basic Forex knowledge etc behind you

Regards


F

F.

Thanks for your post

Not in my case, I am not afraid in working hard, beside I have of a bit of screen time in my baggage...70 tick chart, 30 seconds, 1 minute, 5 minutes, together with 15 and 30m.

I know it is not easy, especially in those smaller TF's, but myself I need to have some kind of objectivity in a method, creativity will be added once understood, I need to understand on what I am working on, if I do not I cannot find enough passion to pursue....

Only me....

F.

 

[Forexmospherian]

classic example of a Time Window on the EU - 17 / 11 / 2014

EU

9 36 pm

Classic example of a change at start of a Time Window - ie 9 21 am

Now from low 2482 and scalp buy above 83 area - price at 2501/ 2 - ie 20 pip rise

We needed over 2503 to hold really - BUT this bounce is strong enough - so any pullbacks should stay above 88 /90

Also now look for 30 mins with no breach of low at 9 20am ish and 2482

This quote is from Monday 17th November 2014 from 9 21 am

Check it out on EU

After basically a 90+ pip fall from a high - the EU bounced at a TW

We need to see if 30 mins goes with no breach of low for next clue - and a HL - but the scalp buy was worth 20 pips anyway

Good Example -


Regards


F

 

[Fugazsy]

F

Lol, I re read the first 30 pages,certainly no one can accuse you of lack of tenacity.
I will be reading more tomorrow......

Fz

 

[Forexmospherian]

Price Structure & PrIce Action - v - Supply & Demand & Support & Resistance

Sorry for not commenting on this thread much over the last 2 months

I have been active on my Intraday Live Calls thread - even though I had looked at stopping it after covering exactly 12 months - ie start of November 2013.

But I was disappointed as I had not achieved half a million page hits in the 12 months and currently I am approx 2 to 3 weeks away from that target.

Recently I have been talking more in the other thread about session price structure - so I thought I would bring it up as a topic along with the other important components involved in TA on a daily basis. - ie Price Action - Supports and Resistance levels and of course the bases of supply and demand by Bears and Bulls.

I think I have said this before - I am neither a Bull or Bear trader per se - I am a vulture - I have no real bias - I might be a big bull scalper one hour and then be with the Bears over half a session - daily / weekly / monthly / quarterly bias does not influence my intraday trading.

However - Session Price structure - which as different to just Price Action - does influence my short term trades - it makes me favour a move - in preference just to PA or a trend - which as you know for me is any move over 3+ pips.

I dont chase every 3+ pip moves though - if i did I might be taking 70 -100 trades over a 8 -10 hr session. I chase normally 7 -25/ 30 pip moves allowing me possibly 10 to 20 trades every day - the number of trades being important.

Price structure and Price Action in a session - ie lets say start of the London Open after 8 00 am UK time is a major clue of a move - whether it be just a 15 pip or 50 pip move.

But it can be stopped by S or R and so called supply and demand - ie levels of changes.

Most trades look upon a strong trend breaking any S or R level - but with supply and demand - that as to change things - as if there are loads of buyers but hardly any sellers - than the market needs to rebalance itself.

In a bull rally - price rises and as it keep rising bulls look at taking profits at resistance levels and when there then become a supply available the bears will move in and start selling encouraging more bears to exit.

Sometimes theses levels might not be broken for days or longer - and so for intraday traders we can be taking trades both ways whilst we await a proper outcome.

On a daily basis I change trades using the interim levels of S & R. There are many as far as I am concerned - both on a static horizontal bases level and at dynamic changing levels normally seen of trendlines

I think It is very important to study and understand more about session price structures and then the barriers of areas of price that can change a price structure - which is then shown by a new price action

Here is an example on the GU yesterday am

It shows both static and dynamic levels - and normally if the are close together they are a stronger barrier

 

[MajorMagnuM]

yes. i see your two arrows highlight confluence of dy and in res, with an encouraging lr set