Scalping - Short term system

Hi all,

Wonder if any scalpers/short term traders here? short term I see as 2-20 min trades.

My way of thinking:

I do not try to predicting what the market will do next, I just react to what the market is doing at the moment

What is happening NOW is what I need to know to get pips in short term. Whats the market doing now? start to go down or up? lets take some fast pips, get out and wait for the next set up.

Doing 3-5 trades a session with up to 10-15 pips a shot is a nice day. I do believe that the better and safer way to trade is as similar to floor traders: many singles and doubles daily. Home runs are nice but why to wait for it if we can get so many singles/doubles a day?

Below please find a screen shot of my trading system.

On Friday it generated 4 entry points (2 long and 2 short)

The system triggers an entery call only when the 2 indicators (THW 1 & 2) crossing the zero line at the same time.

Exit when cci crossing back the 100 line (+ 0r -)

Hi - Do you run the same thread topic on Moneytec.com ?

Yes

Potentially Interesting Forex thread

Tzachi said:

Yes

Click to expand...

Welcome to the board

Who is your Broker for short term trades?

Thank you for the welcome.

I use IFX/CBFX. 3 pips + 1.25 comm' per r/t.

Tzachi.

What is it THW 1 & 2? Could you kindly give a link on the description of this indicator?

Mishek,

THW 1 &2 are proprietary indicators that pointing price breakouts. They are momentum/trend based calculated to signal the most accurate entry point for my trading system.

Tzachi.

THW seems to be a smoothed version of THW 1, they both always cross the centre line together, the system seems to work well for scalping, although I think it would be possible to increase its profitability with a simple money management strategy, I'd be happy to elaborate if anyone is interested. Surely just using either one of the lines alone would work though?

danfreek said:

THW seems to be a smoothed version of THW 1, they both always cross the centre line together, the system seems to work well for scalping, although I think it would be possible to increase its profitability with a simple money management strategy, I'd be happy to elaborate if anyone is interested. Surely just using either one of the lines alone would work though?

Click to expand...

Danfreek,
Yes, please elaborate.
Thanks

Tzachi said:

Thank you for the welcome.

I use IFX/CBFX. 3 pips + 1.25 comm' per r/t.

Tzachi.

Click to expand...

Is that broker the same as AFXI/CBFX? I'm trying the demo for AFXI right now and find it terribly slow, certainly not suitable for scalping. Small pip spreads, however, 2 on the eur and 3 pips on the other majors.

Having a broker who doesn't mind you scalping and who offers low pip spreads iskey to successful scalping, of course.

Go directly to cbfx not to an ib (afxi)

Danfreek,

No, they do not cross the zero line always together. THW2 cross only 1 of 7 times the THW1 is. Trade is taken only when both do. the cross the same time.

Tzachi.

Tzachi, that's fair enough, as I said it only appeard that they were the same from the chart you posted, I was expecting to be wrong about that. Are you trying to sell the lines?

I was thinking that since it is a scalping system you want to get the maximum profit from a short time scale without giving too much room for pullbacks. Please correct me if I am wrong but you seem to have some kind of volatitity indicator on the chart like a bollinger band. Since when you are scalping you want to ride the volatitity in your direction and then get out before any reversal happens, it would seem logical to me to scale out fo half of your position when the price bars no longer touch the band (in this case the yellow lines?) this would indicate that a pullback is likely, and so you are scaling out at a potential top, The CCI rule seems to work well though so I would leave the other half on the table and exit on the same rules as before. The idea behind using the extra exit is basically to take some profit while it exists to avoid giving the small profit back to the market before the CCI indicates an exit.

My other idea was a simple trailing stop. By using something like 2 X ATR. This has always worked well for me. Occasionally I scale out of the position with seveal trailing stops at different distances, that allows me to take some winnings off the table at the first sign of trouble, but leave a bit on to take advantage of any further movement. I used to use 2 and 3 times ATR on cable, it worked quite well.

These ideas would need to be backtested though to really see their value on this setup.

Does anyone would like me to post my live trades of this system ?
Let me know via pm or email to: [email protected]

Tzachi.

I am also curious if you are attempting to sell these lines?

No

Tzachi