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Scalping Maybe a way to go!! Loading and Unloading the Truck

 
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kkendall

Scalping Maybe a way to go!! Loading and Unloading the Truck

I have improved my skills and results by focusing on scalping.

I have found that by looking at relastic possablities and picking a short term target with Support / Resistance improves results.

When this target is hit unload truck (DISTRIBUTE) regardless how far I may speculate the market may go. Marjorty of the time this proves to be short term correct. There is all ways an new opportunity (Loading Dock) just around the corner.

I am picking a support / resistance areas to build a possition to slowly load the truck.  (ACCUMULATE)

 

Thu, 11/12/2015 - 12:28pm
 
Sokha

I used to scalp for 10 pips each day with 30 pips stop loss. Success was about 80%, but got tired of 1 stop out took the whole 3 days of work. May I ask what is your risk reward ratio? 1:1, 1:2 for your scalping strategy.

For the Beeline, I have tried the London open with 20 pips stop and 20 pips target with trailing stop of 1 pips. If I can achieve over 50%, it is a winner for me becasue stop loss is less than 20 pips for some trades. I look for momentum trade with this strategy.

--Sokha

 
hakchinoy

Sokha, please correct me if I'm wrong: since you've posted some H1 charts before, I'll assume that scan H1 charts for potential setups (regardless whether or not you trigger/manage your trades off a different TF).

You expressed 2 goals: 1) increasing your win rate (to be at least 50%), and 2) scoring 20 pips. Which one is more important to you?

 
Sokha

@hakchinoy--

The H1 charts that I posted are my swing trade setups. Those are my swing set and forget style of trading. It requires very little time to manage the trades. I usually scan for those opportunities on Sunday afternoon, and then put all the orders in my trading platform with risking 1-1.5% per trade before I go to bed on Sunday night. For example, there were 8 trades set up ranging from 60 min, 120 min, 240 min and 320 min (aka LTF H1, H2, H4, H6, and H8). I usually will not go lower than H1 as my lower time frame for swing trades.

Currently, they are ~40% win with that strategy. My goal is to work toward 60%. That H1 is the refined time frame (aka an x-ray or microscopic snap shot of my H4 level. H4 is a little too large for my risk on GBP/AUD level.

As for your question regarding the 20 pips stop loss, 20 pips profit with 1 pip trailing stop is my London open day trade strategy or momentum strategy that I am currently working on using 5 min-chart with BB. It is easy to place at market order with one click, and then I can readjust if needed.

If I got 50% win on my 20 pips profit; I got a strategy, because my loss is not always 20 pips due to 1 pip trailing stop or adjustment bases on the chart after entry, but my win is always 20 pips. If I can increase that to 60%, then I have a strategy for my London open trading strategy.

 
hakchinoy

Sokha, perhaps the point that I tried to make with my question was too subtle, so I'll be more direct. The longer the run that one intends to capture, then the lower the win rate will be.

I'll circle back to that point in a moment, but let's back up a step for now.

I'll list some options that one has for increasing one's win rate in trading: 1) go for shorter targets, 2) trade higher probability setups, 3) look for alignment, 4) place trades in areas of confluence, 5) decrease/increase trading frequency, and 6) use multiple trading approaches (scalping, swing trading, or position trading).

Assuming ATR(TF) ≥ 20 pips, one can use a PC+TC analysis to filter out the trade setups having a higher potential to deliver at least 20 pips. Yet, doing so would decrease one's trading frequency.

Please keep the following 20-pips move consists of 4 back-to-back 5-pips moves, 5 back-to-back 4-pips moves, 10 back-to-back 2-pips moves, and so forth. Shorter runs have higher probability, because a trade always has to be 1 pip in-the-money before it can be 10 pips in-the-money, and so forth.

Ultimately, you can have your 20 pips and higher win-rate. Yet, that's more difficult--but not impossible--to do in a single trade. Like you, I'm combining my scalping with swing (and position) trading, but my approach is slightly different. Although I'll let my swing trades run as you do, I use my scalps for generating income, building buffers, building position trades, and controlling my stats. Stated another way, whenever I have to choose between a pip count or a win, I'll choose a win every time.

 
Sokha

@Hakchinoy,

Thanks for the inputs and comments. I will take that to implement my existing strategy. I like your #2-6. That's why I am here to learn the technical side of trading. I'll keep my target because those 40% was profitable in pips for me. I will try multiple targets on a demo and see if the higher win rate will increase my pips or not.

The problem is that I will not see my trade triggers; thus, the confluence and alignments I will have to implement on higher time frames as filtering, which I am currently working on that as well.

As for #6, I usually start looking on daily and 240 min but trade on 5/ 15 min at London open, those are using 20 pips stop, 20 pips target, and 1 pip trailing stop to execute on 5 min, and then readjust the stop base on the chart. It was working great this morning for AUDNZD long at 3:00 am. EST. Stop loss was adjusted for 10 pips upon entry based on the buy stop using 5-min accumulation technique on the breakout strategy.

Thanks,
Sokha

 
hakchinoy

"The problem is that I will not see my trade triggers; thus, the confluence and alignments I will have to implement on higher time frames as filtering"

That doesn't have to be an issue. Please keep in mind that some patterns tend to propagate themselves over multiple TFs. For example, breakouts form on lower TFs, before they form on higher TFs. Since you already mark up your charts with R/S for higher TFs, simply look for breakouts on higher TFs that are heading towards those Rs/Ss. :) Those collision points are areas of confluence. :)

 
Sokha

Thanks @hakchinoy. I also start to take shorter targets on demo account using your #1 tip. Those opened my eyes when my swing trades triggered. I go into smaller TF and analyze the pattern for short term trade. Now, I am implement that strategy into my daily-weekly income trade.

Thanks,
Sokha.

 
hakchinoy

"I also start to take shorter targets on demo account using your #1 tip."

The power and versatility of the TP=1 to 3 pips trade initially surprised me.

". . . when my swing trades triggered. I go into smaller TF and analyze the pattern for short term trade."

No problem. I also like to scalp on lower TFs off higher TF trade setups (especially when the pattern propagates [frequently multiple times] on the lower TFs).

I intend to take more parallel scalps with my swing trades, but I'll need to finish tuning certain aspects of my swing trading before I'd be ready to proceed.

 
Mike Brown

Hello hakchinoy,
I was reading through the forum a while back and came across a thread in which you were going over your scalping strategy.
You showed an awesome equity curve and there was much good information in it. I was going to go back and read through it again,
but for the life of me I can't find it. Do you recall where that was?
I am currently working on scalping the 1M EUR/USD, but there are many nuances that I still have to master.
Thanks for all that you do for everyone.
Mike

 
hakchinoy

2 threads: "Trading Techniques" and "Guerrilla Trading".

The biggest challenge with trading off M1 is that one has to be focused and decisive. Some would say that one also has to be precise; yet, I've been able to scalp winner with precise and imprecise entries. Please don't mistake imprecise entries for un(der)planned ones. At least as much--if not more--planning goes into imprecise entries, because one has to rely more heavily on one's money/risk/trade management when using imprecise entries.

 
Mike Brown

Thanks for the reply

 
mancinigerardo

At short terms pivots points work better for me. I usually place a stop loss at the middle of my target.

 
abmohammad

Very interesting and informative discussion from a technical point of view. Hope to learn more from all you guys.

 
kkendall

All,
Update:

Scalping by Load and Unloading the Truck has proven to be real successful over my last 5,000 trades.
I suggest that you look at M1 chats in EURUSD or USDJPY

Look for short term opportunities. Small but building daily success.

Kurt Kendall

 
kkendall

Sokha

Sorry I did not notice your question from long ago.. I do not set a take profit except at 50m pips out..Rarely every used.

I MKT close the position when it seems done for that move. This is true for a winner or looser.
Risk to rewards are in the results that are seen in a few hundred trades.
This is averaging about 1:1. With a few large gains at times. Keep in mind my stops are real tight at 8 pips

Kurt Kendall

 
Sokha

Kurt--

I am with you on that. Thanks for your reply. You can lost on Apiary's site since there are so many postings everywhere. I usually send the email directly to the person once I accidentally notice the questions. This way I can address what they need.

Regards,
Sokha

 
Toti

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