Why I have been using the Linear Regression Indicator for over 8 years

Swedenfx

Newbie
Scalping

Hi Forexmospherian

First of all I would like to thank you for the contribution to the forum on T2win. I think what you do is really excellent and that you are so open and share your strategy is even more admireable.

Short about myself: I am a part time trader since 2008. I was pissed off when my bank lost half of my money 2006-2007 by letting 25 year old fresh brokers trade away the money and still got 1.5% commission. Also I had a few friends friends from university that where stockbrokers and it really annoyed me that these high shots knew so little about the stockmarket and earned so much money.

I decided to learn the art of trading and has been reading multiple books etc. Of course I blew up my account in 2008 like all newbies. Since then I have become more humble and built up knowledge one step at a time and tried different strategies etc. I have been quite successfull with different swingtrading strategies on currency and indicises. The problem I have realized is that swingtrading doesnt suit my trading personality. If I am trading larger volumes (for me that is 2 lots of eurusd) I can't stick with it overnight without sleeping bad and also during my dayjob I am like an addict and must check the rates all the time. I still swingtrade but with smaller positions so I can have a good nights sleep:)
Therefore To suit my personality have been working on a scalping technique for the last 12-15 months so I can sit down whenever I have time after work and scalp (1 to 2 times a week) As you write in the forum, most books are about swingtrading and long term trading and surprisingly little on scalping and most traders and experts says it is impossible. I am sure it is possible and you prove it.
I agree with you that we retail traders have a advantage compared to bankers and hedgefunds since we have access to the same software and spreads and can scalp in and out reaping 5-10 pips. I don't think that is a common strategy at JP morgan.

My strategy for scalping the eurusd is a combination of a fast stocastic on a 5 min chart and heiken ashi on tick chart reading price action? Profit is 10-30 pips and sl 10 pips. This strategi works well and I was profitable in 2013 (150 trades). But I am not even near your level of profitability and was really inspired when I read about your scalping method based on the linear regression indicator.

I have a few question I hope you can answer to clarify your strategi:

1. How many alignements of LR (15,25,45,95 etc) must be under the candle in a 1 minute chart for a scalp buy targeting 5 contra 10 pips?

2.When you reverse and goes from a scalp buy to scalp sell I assume you look at break of support. But if you have tex a 25 pips range I assume you scalp buy at bottom and scalp sell at top. Do you confirm with LR 15 or 25?

3 Do you confirm your entries/exits with volume? (Volume increased my win rate).

4 Can I read more about trading method your method anywhere else? Maybe you have posted your strategy elsewere?

5. The time window you use , 9 minutes before 00 and 30 is that a crucial part of the strategi? I assume you see more activity?

6. Iam currently using IG-markets as a broker, get 0.8-1.2pips spread on the eurusd. Is your strategi suitable with this spread or is it to high? should I fex switch to netdania (spread of 0.4-0.7) I am really pleased with IG, no requotes or slippage).

7. What is your approach to newstrading? I don't trade news myself but it would be nice to find something that works.

I will thank you again for posting on T2win, I am really impressed with what you do and I follow your other threads. The more retail traders that are getting successful the harder its gonna be for the proptrading departments at different banks. Here in Sweden there is already big layoffs in the sector:)

Best regards
Swedenfx
 

Forexmospherian

Legendary member
Hi Forexmospherian

First of all I would like to thank you for the contribution to the forum on T2win. I think what you do is really excellent and that you are so open and share your strategy is even more admireable.

Short about myself: I am a part time trader since 2008. I was pissed off when my bank lost half of my money 2006-2007 by letting 25 year old fresh brokers trade away the money and still got 1.5% commission. Also I had a few friends friends from university that where stockbrokers and it really annoyed me that these high shots knew so little about the stockmarket and earned so much money.

I decided to learn the art of trading and has been reading multiple books etc. Of course I blew up my account in 2008 like all newbies. Since then I have become more humble and built up knowledge one step at a time and tried different strategies etc. I have been quite successfull with different swingtrading strategies on currency and indicises. The problem I have realized is that swingtrading doesnt suit my trading personality. If I am trading larger volumes (for me that is 2 lots of eurusd) I can't stick with it overnight without sleeping bad and also during my dayjob I am like an addict and must check the rates all the time. I still swingtrade but with smaller positions so I can have a good nights sleep:)
Therefore To suit my personality have been working on a scalping technique for the last 12-15 months so I can sit down whenever I have time after work and scalp (1 to 2 times a week) As you write in the forum, most books are about swingtrading and long term trading and surprisingly little on scalping and most traders and experts says it is impossible. I am sure it is possible and you prove it.
I agree with you that we retail traders have a advantage compared to bankers and hedgefunds since we have access to the same software and spreads and can scalp in and out reaping 5-10 pips. I don't think that is a common strategy at JP morgan.

My strategy for scalping the eurusd is a combination of a fast stocastic on a 5 min chart and heiken ashi on tick chart reading price action? Profit is 10-30 pips and sl 10 pips. This strategi works well and I was profitable in 2013 (150 trades). But I am not even near your level of profitability and was really inspired when I read about your scalping method based on the linear regression indicator.

I have a few question I hope you can answer to clarify your strategy:


Best regards
Swedenfx

Hi Swedenfx

Thank you for your comment - and I will answer it in full detail sometime later today

Glad you like what I am doing and you are more than welcome to join in the other thread and learn alongside MM and anyone else who wants to take part etc

Regards

F
 

Forexmospherian

Legendary member
Re SwedenFX -

I have a few question I hope you can answer to clarify your strategy:

1. How many alignements of LR (15,25,45,95 etc) must be under the candle in a 1 minute chart for a scalp buy targeting 5 contra 10 pips?

It can be just one or two - ie 15 and 25 if its in a time window and price is near or past an interim S & R. Sometimes my 1 min chart is too slow and the LRs on a 10 second tick chart will be under already saying a change in bias. I also watch the HH's and HL's and opposites on the 1 min as well as seeing if a RSI 2 on a 30 or 60 min is OB or OS. A quick move prior to the exact hr change can also be a false move - to get traders in the wrong way - before a turn


2.When you reverse and goes from a scalp buy to scalp sell I assume you look at break of support. But if you have tex a 25 pips range I assume you scalp buy at bottom and scalp sell at top. Do you confirm with LR 15 or 25?

Yes - i like confirmations from the 15 and 25 and even more Lrs for a complete turn. I use normally in total 7 -9 Lr settings and if i have say 4 to 6 over price its still favours lower on the 1 min frame and if i have 4-6+ under price - then price is still in a an up scalp bias - However that does not mean price cannot pullback 5 - 15 pips etc and thats were the 15 and 25 can be used to check if they are under or over price

When you have all 8 or 9 LR's over or under price on a 1 min and 3 min - that is a strong move that normally will only be stopped by S & R''s and time changes


3 Do you confirm your entries/exits with volume? (Volume increased my win rate).

I have never been a great fan of volume in FX trading - for me its just as small part and not showing the whole market etc etc. If it works for you - fine use it - and even though I have the level 2 facility on my platform - I hardly ever use it as a main clue for a scalping decision - time and price to me is more important

4 Can I read more about trading method your method anywhere else? Maybe you have posted your strategy elsewere?

Only really early on in the thread - but i do touch on it most days explaining why i have taken a scalping decision etc etc


5. The time window you use , 9 minutes before 00 and 30 is that a crucial part of the strategi? I assume you see more activity?

Yes - exactly - trades can suddenly stop at say 2.51pm or 3.00pm on the dot and also if they don't stop then and manage to go past 3.09pm - then they should carry on most of the time to approx 3 21pm

6. Iam currently using IG-markets as a broker, get 0.8-1.2pips spread on the eurusd. Is your strategi suitable with this spread or is it to high? should I fex switch to netdania (spread of 0.4-0.7) I am really pleased with IG, no requotes or slippage).


Stay with IG if you are happy with them. Any spread and commissions under 2 pips in total is OK to scalp with - but obviously - if the total costs are under say 0.7 pip then it better. I don't like scalping on pairs that have spreads of 4 and 6 pips - it then means my stops need to be 8-12 pips rather than being 3 -7 pips with average including costs being only 5 pips. The EJ is over 1.3 pips higher cost for me than EU - but it can move in say 10 mins still 20 or 30 pips - probably double or more than the EU


7. What is your approach to newstrading? I don't trade news myself but it would be nice to find something that works.

Generally - I exit all scalps - 5 -15 mins prior to news. News trading maybe easy on demo etc - but in real life with over 2- 5+lots - you will have problems and might not get in at the price you want with retail brokers etc - or be able to get out when need to.

There are always occasions like this last Friday on the GU when you could enter a scalp buy - 2 to 5 mins prior to the news and stay with it - simply because the market had done its best the previous hr or so getting traders into sells - before the announcements and wanted a clean break up - to catch them out.

Non red news announcements are not so bad and many times they will be with the intraday session direction anyway



I will thank you again for posting on T2win, I am really impressed with what you do and I follow your other threads. The more retail traders that are getting successful the harder its gonna be for the proptrading departments at different banks. Here in Sweden there is already big layoffs in the sector

Hope that helps Sweden FX - and you are welcome to join in and also ask any questions during my trading days. Some days I have started prior to 7am - especially if I am out for 40 mins on a school run - other days it might not be until 7.30 am and the i will be around to try and follow the London Open hour

All the best

Regards

F
 
Last edited:

tdezo

Member
Lin Reg Indi

I've got cTrader and cAlgo downloaded from MBTrading.
It does not have Linear Regression Indicator listed and I can not find this indi on CTDN website , Google search was not much of a help either.
How can I put my hands on this indicator ?
 

Forexmospherian

Legendary member
I've got cTrader and cAlgo downloaded from MBTrading.
It does not have Linear Regression Indicator listed and I can not find this indi on CTDN website , Google search was not much of a help either.
How can I put my hands on this indicator ?


Hi tdezo

My 2 main brokers atm are FXPro - using the Ctrader and Dukascopy

I prefer the Ctrader platform and have been using it for over a year - but had noticed in this last 3 months lots of changes and updates

One of them - I had not noticed until you pointed it out - was to change the LR names from Linear Regression Indicator - to now Linear Regression Forecast

I have done a screenshot of where it is under indicators

Hope this helps tdezo - any problems - let us know


Regards

F

175602d1402216510-why-i-have-been-using-linear-regression-indicator-over-8-years-linear-regression-forecast-ctrader.jpg
 

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Last edited:

NVP

Legendary member
hey F

sorry if this has come up before..............have you got a decent LR indicator that works on mt4 ?

with a few weeks to finally leaving my current job I want to take a little closer look at what you do

thanks
N
 

Forexmospherian

Legendary member
hey F

sorry if this has come up before..............have you got a decent LR indicator that works on mt4 ?

with a few weeks to finally leaving my current job I want to take a little closer look at what you do

thanks
N

Hi N

Yes you can use actually 2 different LR indicators on the MT4 platform

one is the normal one - ie like I use on my charts and also the same LR indicator as on Intellicharts and GFT / Dukascopy / Alpari / Lmax etc

The other bespoke LR - the LR2 - ( a different coded version copied from Intellicharts Pro ) is also available again from the MT4 custom indicators site - thats the one that moves over a candle change - in advance - either above indicating price should fall - or goes under indicating price should rise.

I dont use the LR2 so often nowadays as I am so familiar with my other LR settings on a 1min for intraday moves

Hope that helps N - but if worse comes to worse - open another account with one of the brokers I mentioned and set them up there to use - away from all your other correlator indicators on your MT4.

If you do go full time - or even just semi Pro ie 2 or 3 full days a week - I suggest you sort out at least 3 or 4 screens for doing short term intraday - and then with 2 different feeds you have cover if one freezes etc .

Also if you use 2 or more computers - have one on a mobile network - I recommend 3G - so if you lose your main broadband feed - you have back up etc

Plus the fact I am ready to help out when needed

Say 2 or 3 full days with me on either thread - or even a new one especially for you - will give you an headache ( lol) but I am sure with your existing experience you will soon get into the groove ;)

Hope that helps


Regards


F
 
Last edited:

NVP

Legendary member
Hi N

Yes you can use actually 2 different LR indicators on the MT4 platform

one is the normal one - ie like I use on my charts and also the same LR indicator as on Intellicharts and GFT / Dukascopy / Alpari / Lmax etc

The other bespoke LR - the LR2 - ( a different coded version copied from Intellicharts Pro ) is also available again from the MT4 custom indicators site - thats the one that moves over a candle change - in advance - either above indicating price should fall - or goes under indicating price should rise.

I dont use the LR2 so often nowadays as I am so familiar with my other LR settings on a 1min for intraday moves

Hope that helps N - but if worse comes to worse - open another account with one of the brokers I mentioned and set them up there to use - away from all your other correlator indicators on your MT4.

If you do go full time - or even just semi Pro ie 2 or 3 full days a week - I suggest you sort out at least 3 or 4 screens for doing short term intraday - and then with 2 different feeds you have cover if one freezes etc .

Also if you use 2 or more computers - have one on a mobile network - I recommend 3G - so if you lose your main broadband feed - you have back up etc

Plus the fact I am ready to help out when needed

Say 2 or 3 full days with me on either thread - or even a new one especially for you - will give you an headache ( lol) but I am sure with your existing experience you will soon get into the groove ;)

Hope that helps


Regards


F

sure does - thnx (y)

N
 

Rakiura

Newbie
N

Could you please post the site where F mentioned where the LR2 indicator is posted? I'm having trouble finding it.
Thanks
J
 

Forexmospherian

Legendary member
Hi guys

Re - LR 2 indicator for the MT4 platform ?

It used to be on the MT4 custom indicator independent site - last time i needed it was 3 yrs ago as dont use MT4 nowadays

i will check out old info and look for it today and then post

Edit

Ok found a few sites - try these -

http://www.fxfisherman.com/forums/forex-metatrader/indicators/1863-linear-regression-indicator.html

http://www.forexfactory.com/showthread.php?t=14660

Will see if I can find the site i used to use as well

Regards

F
 
Last edited:

NVP

Legendary member
Hi guys

Re - LR 2 indicator for the MT4 platform ?

It used to be on the MT4 custom indicator independent site - last time i needed it was 3 yrs ago as dont use MT4 nowadays

i will check out old info and look for it today and then post

Edit

Ok found a few sites - try these -

http://www.fxfisherman.com/forums/forex-metatrader/indicators/1863-linear-regression-indicator.html

http://www.forexfactory.com/showthread.php?t=14660

Will see if I can find the site i used to use as well

Regards

F

thnks ............i'll run the ff version ........(y)
 

Forexmospherian

Legendary member
So how to know when to enter the trade where are stop and take profit target

Hi aleksandarmfx

It all depends on what time frames you set up your multi LR's on

For example if you worked off a 4 hrs or daily chart then you will not be using 5 pip stops and after targets of say only 10 -25 pips.

But if you were using a tick chart or 1 minute chart - then you would be looking at prices and areas and times that a 5 pip stop would work and if the move went 10 or 15 pips you way you would end up with a very nice trade of a RR over 2

That is equivalent to using a day chart with say a stop of 70 pips and a target of 140 /150 pips - ie RR of approx 2.

Trouble is - you need more live screen time and understandings of PA to use very small stops - and so initially you might try on demo a 1 min or 3 or 5 min using a 10 or 15 pip stop with a target of 10 -30 pips to get the feel

Also worth looking through this thread for more information to assist

http://www.trade2win.com/boards/tra...ding-forex-market-make-consistent-profit.html


All the best


Regards


F
 

karmit

Well-known member
Hi F,

Are you still using "15 - 25 - 45 -95 - 115 - 180 - 285 - 500 - 900 " on cTrader?

Cheers
Karmit
 
 
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