The old mans trades

[theoldmanstrades]

Oldman - if you want 100 pips monthly, why scalp? Unless you enjoy plunging.. Better use of time and less paying of trading costs could probably get you that from a swing or day system

Maybe I'm not being clear enough. I do trade long term. I'm short eur and aud now for two weeks or so. Up nice profit. Will take Aud soon (trailing stop soon), but I am holding Euro for below 1.2000. Not terribly exciting or time consuming.

I just enjoy the challenge of trying to scalp. 100 pips a month is what I think it would take to make it worth it, and therefore be successful at it. If I scalped all month for 30 pips a month, I wouldn't consider that a success. I don't necessarily need 100 pips a month. I need something to do moreso.

And if this helps someone else along the way, from my success or failure, great.

 

[natureboy]

Ah - you did say you had traded long term for years. I thought you made the switch entirely to scalping. Ah. Generally, you have to have a high probability setup for scalps, as their reward to risk is lower usually.. I have a friend in my town here who's older, he scalps the Russell. I mentioned him to you. He's a consistent earner for years, you just have to find your niche with it.

I understand - you enjoy the game, you don't need the pips. Well, there are lots of possibilities out there for good scalping setups - Good Luck on the search.. Support/Resistance i would think would be a key technical factor, possibly multiple timeframes - S/R on an hourly may make for a good 1m scalp kind of thing

 

[theoldmanstrades]

Here is a possible scalp on gbpyen. Has to cross green line before red line.

 

[theoldmanstrades]

Generally, you have to have a high probability setup for scalps, as their reward to risk is lower usually..

That's for sure. Spread is a huge factor. I see lots of tiny setups today so far, but all under the 10 pips needed on the profit side.

 

[theoldmanstrades]

GBPYEN crossed red line making new low. No trades yet.

 

[natureboy]

That's for sure. Spread is a huge factor. I see lots of tiny setups today so far, but all under the 10 pips needed on the profit side.

Right. Spread is key, 2 pips or less i'd probably go for. 10 pip target huh? So, with that wider spread you'd make 8, you'd need a 2 pip stop loss entry to SL + spread for 2:1 that'd be tough. Not easy at all. Probably 1:1 feasible, maybe a little better than that. 8 pip EN to SL price range + 2 pips spread, i could see that working.. or even 1.3 : 1 type setups.

The key thing is really that probability backdrop. I use chart patterns, which can allow for tighter stop losses. The issue is - that won't help you unless you are using that tight stop loss at the right moment. Scalping is different from those swing trades.. Reward to Risk is in you favor for the big swings, its the opposite deal with scalping, typically. I'm also interested in developing a good scalping approach - i have day and swing systems that work fine.

Whatever you use for scalping, i say program and test. It makes sense to check the vitality of the strategy before using it. Saves time, ultimately, and has more background information to base action upon - you can verify that from 1,000+ scalps it does what you want. Also can lead to automation which IMO is best for speed and consistency reasons. Again, unless you just enjoy the manual challenge.

I've looked at various support/resistance methodologies. There's a Volatility Based S/R from Kirk Northington - think they offer a free test. There's swing ratio projections (which I use). And then there's Psychological S/R like 1.2800, 1.2900 - (i also use) that you can see showing up in EURUSD recently. I also have a high probability setup i'm looking at, still in the testing mode.

 

[theoldmanstrades]

I'm not going to worry about the risk reward ratio. Stops will be whatever size they are, with the target of 10 pips for now. Net 10 pips, so I'll need 12-14 pips of chart movement depending on the pair to cover the spread. It will have to win much more often than loses for sure. We'll see if its doable soon enough. If it doesn't work it could lead to something that might although.

 

[NVP]

Maybe I'm not being clear enough. I do trade long term. I'm short eur and aud now for two weeks or so. Up nice profit. Will take Aud soon (trailing stop soon), but I am holding Euro for below 1.2000. Not terribly exciting or time consuming.

I just enjoy the challenge of trying to scalp. 100 pips a month is what I think it would take to make it worth it, and therefore be successful at it. If I scalped all month for 30 pips a month, I wouldn't consider that a success. I don't necessarily need 100 pips a month. I need something to do moreso.

And if this helps someone else along the way, from my success or failure, great.

not sure re selling euro more recently ...but thats a nice AUD call since late Sept

N

 

[BeginnerJoe]

Here is a possible scalp on gbpyen. Has to cross green line before red line.

Ok, this systems is good so far. No trade means no loss and no bleeding.

 

[theoldmanstrades]

Ok, this systems is good so far. No trade means no loss and no bleeding.

LMAO!!

Two trades so far today. Will post them now. Just had some computer issues for a few hours.

 

[theoldmanstrades]

This one is still running. Aud short.

 

[theoldmanstrades]

This NZD trade was a winner. +10 pips

 

[theoldmanstrades]

Aud just hit +10 also. Two winners so far today.

 

[theoldmanstrades]

set ups on usdchf, gbpusd, gbpyen, and audusd right now. I'll make some pics.

 

[theoldmanstrades]

usd chf entered now.

 

[theoldmanstrades]

Audusd waiting for possible entry.

 

[theoldmanstrades]

gbp/usd entered. Not looking pretty right now.

 

[theoldmanstrades]

Waiting for possible entry on gbpyen.

 

[theoldmanstrades]

Nzdusd has a long scalp at .82127

 

[theoldmanstrades]

gbp/usd cost me -26.6 pips. There was never a chance to take any profit on that trade.