Do any of you do this?

[king156]

I don't know if this is classed as a strategy or not? But I use a 1 min chart on eur/usd then just trend the trend. So when I see a downward / upward trend I only enter when the trend is clearly in place and will usually exit with 1 to 3 pip profit.

Is this any good of an idea? Sorry for noob question.

 

[Fugazsy]

I don't know if this is classed as a strategy or not? But I use a 1 min chart on eur/usd then just trend the trend. So when I see a downward / upward trend I only enter when the trend is clearly in place and will usually exit with 1 to 3 pip profit.

Is this any good of an idea? Sorry for noob question.

We are all nobody here...

you mean trade the trend? If that is the case I guess it is a strategy....also trade against the trend is a strategy.....staying aside is a strategy....

But how do you define a trend? and what is your risk in pips on a 1-3 pips gain? Do you have percentage of your winning trades and how many trades did you make on this strategy.....I also suggest you have a look at expectancy, just google it and while you there also look at profit factor and while you there have a look at Van Tharp work......chat later

 

[king156]

Yeah basically trading the trend you could say.

Well I have £1k and my results doing this are as followed:

Day 1- £1000 ended the day on £1042
Day 2- £1042 - £1070
Day 3 - £1070 - £1095
Day 4 - £1095 - £1224
Day 5 - £1224 - £1146

So always ended in profit. So kind of averaging 2% return each day on £1000. I trade 1 pp usually although sometimes 0.50 pp. Risking no more than 3% per trade.
Thx any thoughts...

 

[Fugazsy]

Yeah basically trading the trend you could say.

Well I have £1k and my results doing this are as followed:

Day 1- £1000 ended the day on £1042
Day 2- £1042 - £1070
Day 3 - £1070 - £1095
Day 4 - £1095 - £1224
Day 5 - £1224 - £1146

So always ended in profit. So kind of averaging 2% return each day on £1000. I trade 1 pp usually although sometimes 0.50 pp. Risking no more than 3% per trade.
Thx any thoughts...

Looks good mate....but early days in my view...but keep at it....if it works...do it....if is it does not more....keep adjusting it till it does..... at one point you will find your balance.....personally I think is a good idea, trade with strength and against weakness.....it is also my favourite way......the point is how you define strength and weakness......well I leave that to you, I am sure you will weight it up.....

 

[king156]

Looks good mate....but early days in my view...but keep at it....if it works...do it....if is it does not more....keep adjusting it till it does..... at one point you will find your balance.....personally I think is a good idea, trade with strength and against weakness.....it is also my favourite way......the point is how you define strength and weakness......well I leave that to you, I am sure you will weight it up.....

Thanks mate for the feedback really appreciate it. Happy trading!

 

[Fugazsy]

Thanks mate for the feedback really appreciate it. Happy trading!

anytime mate.....anytime.

 

[gerryg]

I don't know if this is classed as a strategy or not? But I use a 1 min chart on eur/usd then just trend the trend. So when I see a downward / upward trend I only enter when the trend is clearly in place and will usually exit with 1 to 3 pip profit.

Is this any good of an idea? Sorry for noob question.

If it is consistent result then nothing to worry about. Sometimes your strategy may not fit general concepts of trading system, looks stupid or ridiculous, but this market requires working strategies and not widely adopted. It's not about fashion but making money, after all

 

[king156]

If it is consistent result then nothing to worry about. Sometimes your strategy may not fit general concepts of trading system, looks stupid or ridiculous, but this market requires working strategies and not widely adopted. It's not about fashion but making money, after all

yeah thanks that's very true seems to be averaging 2% a day return rn. So im happy with that

 

[alexaherself]

I don't know if this is classed as a strategy or not? But I use a 1 min chart on eur/usd then just trend the trend.

It's certainly a "strategy", but it isn't in itself a "system".

One of the downsides is that your dealing costs (spread, or whatever) will take away a hugely significant proportion of your potential profits. That's not to say that it can't still be done profitably, of course.

Some comments based on my own experiences of playing with this, a few years ago ...

(i) It may help you to have your exits very clearly defined;

(ii) It may also help to define the "longer-term" trend from 5-minute or 10-minute charts and take only trades on the 1-minute chart in accordance with that pre-specified direction;

(iii) It may also help to add an ADX indicator (10 periods will do) and take trades - in either direction - only when the ADX is rising (but without reference to its actual number);

(iv) I strongly suspect that you may be able to achieve the same profit with far fewer trades (a good thing, in principle) by using two-minute or three-minute charts, instead of one-minute.

 

[Forexmospherian]

I don't know if this is classed as a strategy or not? But I use a 1 min chart on eur/usd then just trend the trend. So when I see a downward / upward trend I only enter when the trend is clearly in place and will usually exit with 1 to 3 pip profit.

Is this any good of an idea? Sorry for noob question.

As Fugazsy as mentioned -

What's your stop size ???

Regards


F

 

[alexaherself]

Further observations ...

Day 1- £1000 ended the day on £1042
Day 2- £1042 - £1070
Day 3 - £1070 - £1095
Day 4 - £1095 - £1224
Day 5 - £1224 - £1146

So always ended in profit.

That's "always" in the same way that someone standing next to a roulette table on which five black numbers have just come up might announce "Black always comes up at this table". When you have forty days' results, of which twenty-five or more have been profitable, and a positive net result, that would be a good time to start analysing the results. No disparagement intended, but I suspect you're "over-trading" at the moment.

Risking no more than 3% per trade.

You're an "aggressive young gunslinger".

I would risk no more than 1% per trade, myself.

 

[Forexmospherian]

It's certainly a "strategy", but it isn't in itself a "system".

One of the downsides is that your dealing costs (spread, or whatever) will take away a hugely significant proportion of your potential profits. That's not to say that it can't still be done profitably, of course.

Some comments based on my own experiences of playing with this, a few years ago ...

(i) It may help you to have your exits very clearly defined;

(ii) It may also help to define the "longer-term" trend from 5-minute or 10-minute charts and take only trades on the 1-minute chart in accordance with that pre-specified direction;

(iii) It may also help to add an ADX indicator (10 periods will do) and take trades - in either direction - only when the ADX is rising (but without reference to its actual number);

(iv) I strongly suspect that you may be able to achieve the same profit with far fewer trades (a good thing, in principle) by using two-minute or three-minute charts, instead of one-minute.

Hi alexaherself

I would agree with your comments - but keen to know the size of his stops

Also i think a 2 or 3 min would be OK for a newbie - but I found once you get used to a 1 minute - or even any tick chart - after a few months ( or years) its all so slow anyway 90% of the time

An experienced scalper on a tick or 1 min chart would average 1-3 pip earlier entries than a 3 or 5 min chart and so on 100 trades - even at a low 60% win ratio - it can make you an extra 50+ pips and maybe an extra 200+ pips per month

I also agree costs are important - but if you can work on pairs with spreads of 0 3 to 2 pips - then its not too bad - on spreads of 3 -6 pips - forget scalping etc.

I would prefer to pay my broker say $2k commission per month and make a net $5k or more - than pay my broker only $500 a month but only make $3k net

As an old accountant friend used to say to me -" its not just what you can save - its more important what you can make"

Regards


F

 

[king156]

What is the dealing costs btw? Im still very new to this I don't wuite understand that. Anyone explain...

 

[king156]

As Fugazsy as mentioned -

What's your stop size ???

Regards


F

I generally put a stop loss 10 to 15% under where I open. But im more of a scalper aiming for a few pips then out within a minute or so. Its early days I realise I could loose all my profit on one trade.... not really sure where to progress from here guys

 

[king156]

Further observations ...



That's "always" in the same way that someone standing next to a roulette table on which five black numbers have just come up might announce "Black always comes up at this table". When you have forty days' results, of which twenty-five or more have been profitable, and a positive net result, that would be a good time to start analysing the results. No disparagement intended, but I suspect you're "over-trading" at the moment.



You're an "aggressive young gunslinger".

I would risk no more than 1% per trade, myself.

Appreciate the feedback I will get back after the 40 days and post some results in!

 

[Forexmospherian]

I generally put a stop loss 10 to 15% under where I open. But im more of a scalper aiming for a few pips then out within a minute or so. Its early days I realise I could loose all my profit on one trade.... not really sure where to progress from here guys

I am pleased you are aware you could lose all your profit on one bad trade - and so really your good fortune over 5 days is more luck than any trading ability etc

For scalping you ideally want win ratios of over 70% - not just on 10 or 20 trades - but based on 100's of trades - showing you have a method that will work consistently. This should be undertaken on a demo account - not with live money

Then you need a positive Risk / Reward ratio - ie in your lingo if your stop is 10% below your entry point - you need a result with a gain of above 10% of where you entered - ie if stop is 30 pips you target should be 30 pips + - ideally 60+ pip to give a RR of 2+

I scalp as well as intraday swing. My stops on FX trading are 3-7 pips and targets are 7 -25+ pips - but if i have to exit with only 3 pip profit - I will rather than take a loss.

All scalps should be under 30 mins some might only last 1 or 2 mins even if you are just after a few pips or points.

If you are having trades lasting 1 hr or even 4 hrs or more than a day - you are not scalping - you are just gambling and hoping etc etc.

Even with a successful 70% + win ratio - you can still have 5 or 7 more losses in a row - and yes you could also have 15 -20+ wins in row - so that's why you employ money management - ideally stay under 2% or lower stake size of capital and realise that if you lose 33% of your capital - you need a 50% gain / increase to just get it back to where it was prior your loss.

Loads to learn - but check out Timsk's links on starting out and learning all about trading etc etc.

Unfortunately - you will not remain in the game etc - unless you study and gain as much knowledge as possible on trading the particular markets you are interested in

GL

Regards


F

 

[king156]

I am pleased you are aware you could lose all your profit on one bad trade - and so really your good fortune over 5 days is more luck than any trading ability etc

For scalping you ideally want win ratios of over 70% - not just on 10 or 20 trades - but based on 100's of trades - showing you have a method that will work consistently. This should be undertaken on a demo account - not with live money

Then you need a positive Risk / Reward ratio - ie in your lingo if your stop is 10% below your entry point - you need a result with a gain of above 10% of where you entered - ie if stop is 30 pips you target should be 30 pips + - ideally 60+ pip to give a RR of 2+

I scalp as well as intraday swing. My stops on FX trading are 3-7 pips and targets are 7 -25+ pips - but if i have to exit with only 3 pip profit - I will rather than take a loss.

All scalps should be under 30 mins some might only last 1 or 2 mins even if you are just after a few pips or points.

If you are having trades lasting 1 hr or even 4 hrs or more than a day - you are not scalping - you are just gambling and hoping etc etc.

Even with a successful 70% + win ratio - you can still have 5 or 7 more losses in a row - and yes you could also have 15 -20+ wins in row - so that's why you employ money management - ideally stay under 2% or lower stake size of capital and realise that if you lose 33% of your capital - you need a 50% gain / increase to just get it back to where it was prior your loss.

Loads to learn - but check out Timsk's links on starting out and learning all about trading etc etc.

Unfortunately - you will not remain in the game etc - unless you study and gain as much knowledge as possible on trading the particular markets you are interested in

GL

Regards


F

Many thanks for your great feedback here. Nice to see someone who is well informed and knows what their doing!

I will say for now im going to take a break and stop while im ahead. And go back to the demo and practice, practice, practice. Im only doing the euro/usd so will study that intensely for now. Ordered some books on the way too.

Thanks for your help appreciate it.

 

[Xylitol]

I don't know if this is classed as a strategy or not? But I use a 1 min chart on eur/usd then just trend the trend. So when I see a downward / upward trend I only enter when the trend is clearly in place and will usually exit with 1 to 3 pip profit.

Is this any good of an idea? Sorry for noob question.

Just want to ask a few questions. Sorry if they sound really stupid, I'm a complete newbie.

1. What's a 1 min chart on eur/usd? Is that a just a chart that updates every 1 minute with exchange rate values?

2. What do you do when you 'trend the trend'? Is that betting on it going up/down if it looks like it's on an upward/downward trend?

3. How do you know it's on a trend and that the trend is 'clearly in place'?

4. What is 1 to 3 pip profit?

 

[alexaherself]

1. What's a 1 min chart on eur/usd? Is that a just a chart that updates every 1 minute with exchange rate values?

No - all charts update continuously. A 1-minute chart (on EUR/USD or on anything else you can trade) is a chart on which the information is presented in units/bars/candles/whatever each representating units of 1 minute of time. In this example, the information's typically presented in such a way that the "open", "high", "low" and "close" of every 1-minute elapsed can be seen at a glance. The mechanism by which this is done varies. For example "bar charts" and "candle charts" present the same information in different ways. Bar charts visually emphasise the high and low, while candle charts visually emphasise the open and close. In either case, the movements up and down within the minute are not displayed after the end of the minute/"period", once the bar/candle has been "printed".

2. What do you do when you 'trend the trend'? Is that betting on it going up/down if it looks like it's on an upward/downward trend?

Yes.

3. How do you know it's on a trend and that the trend is 'clearly in place'?

There are very many different ways of deciding this. The overall slope of the pattern of lines/candles can tell you. Many people also use some kind of "indicator" (sometimes a "moving average") to tell them, but this isn't really necessary.

"Trend" is even defined in different ways, according to different criteria, for different trading purposes.

4. What is 1 to 3 pip profit?

A "pip" is the smallest unit of price-change (actually this isn't quite true. There are micro-pips or "pipettes" these days, too). Example: if you look at GBP/USD and the rate is 1.4956 and goes up to 1.4957, that's a one-pip difference. Or if you buy GBP/USD at 1.4956 and sell it at 1.4959, that's a 3-pip profit.

This link will help you (and keep you busy!), and answer all of the above and countless related questions in all the detail you can need for a general overview: http://www.babypips.com/school

NB (with specific regard to the context of this thread): most people/sources - myself included - would generally advise any beginners against trying to trade from 1-minute charts, in the interests of concentrating on the "bigger/slower-moving picture", and for other reasons, too.

.