That's interesting quantitative work you've performed. What type of software are you using? Is that an Excel table using VBA code?

These tables (all done in Excel, David, Visual Basic not needed) show the two gain:loss ratios' end results differ strongly. The reason for waiting rule for two consec losses and a win is to increase the probability that the next trade with a higher dollar/pip risk will be a winner.

Trading the tail is definitely viable and can be done by simply betting with the trend of the concluding day. If shorting a higher yield currency, trader may wait until after FXCM rollover time, to save paying the o/n interest. In those three hours, there is a 50/50 prob that the market has moved in your favour/ against you.

Arco: does your active Gann software have a time input parameter?

Arco: does your active Gann software have a time input parameter?

No, I calculate them by hand on EOD (similar to pivots).

Thanks for the excel info, etc.

rgds - arco

Hi,
I am interested in trade scalping, however I know very little about it at the moment. I would very much be grateful if someone could give me any advice or tips so that I can improve .

Best Regards

Can anyone please give me advice or tips on scalping. Any help is greatly appreciated

I know this might be simple but ive had a bit of success with this at the moment.Very profitable on cable last few weeks,i simply only look at hourly charts and wait until the price hits the top or bottom of the channel depending on which way it is trending.cable had trended dwn for the last several days or so almost on this hourly and there was several opportunities to sell at the top of the channel and put a stop loss say 20 pips away. it doesnt always work and you can get stopped out but the profit can be good and good risk reward ratio.it only broke through upwards on friday due to usa dropping interest rates and as euro broke up 1st i had an idea that perhaps the trend was at an end.I read a guy called tony juste on fxstreet and he is very good with overbought /oversold conditions ,ive learned alot just by reading his blog.
you could probably use any time and i like 4 hourlies also,its amazing how many times price touches the extreme and bounces back!,if it breaks out you only lose 20 pips.im not an expert on rsi or moving averages but this could be incorporated into this method.
please give me some feedback as i think its simple and works alot of the time ,you can pick any currency that is trending well at the time.

Reply to scalping
I'm working on this very aspect. It has to do with my Sitting Ducks.
The only truth is the "tick".....and this "tick" becomes "history" the moment
with the following "tick". So what you really have is a Seirpinski triangle as
far as going up the time frames. Think about this: No matter where you go
in the time frame....the "tick" did it. Or the "tick" was there to do its "soft
shoe dance". My contention is just opposite of Tony Gold and his premise.
If I am correct...Tony Gold leaves out "time". (Or am I way off as to who
Tony Gold is). Regardless...stuff the Irish deceased and keep the party going.
Just a step aside....to scalp, you should be an experience trader. The irony
is that for a newbie with very little or limited capital, it would be logically
better for the newbie to scalp. One has a better chance to make 7 or 8...
10 pips than 20 pips. But you have to know how to trade...and the newbie
doesn't have the experience. Back to the "tick". The whole market is within
a time period. Here in the forex market, it's a 24 hour. Stocks and the
commodities run for only a few hours. Thus the gaps and limits...in other
words...there are "holes" in the line. If you're going to do any "scalping"
then you should know something about "time frames". No matter what....
the "tick" is there in all of the time frames. From the "tick", minute, five
minute on up to the year and infinity and "black hole"....if you wish. Now
here is something for you to "think" about. Where does all of this start?
The "OPEN"...of course. Where and what time? ....New York at 5:00 EST.
(Yeah....yeah....Aukland, Hong Kong, blah, blah etc.). Now here is where
departures start. The "market" itself is in a form of a quadrants. There are
4 of them. When you look at a chart....it comes in a form of a "daily".
Within the daily you the numbers from the "open" to the "close". So where
does the daily fit within the "quadrants"? In the 1st and 4th quadrant.
The "open" starts right in "middle" of the 1st and 4th quadrant. This is the
line in the sand...and this is where the "slope" is zero. The first "tick" is
the "open"...the most important "number" . This number depends on the
"time"....and the time becomes the "domain" which is independent and
infinite. The number is the "price"....and it becomes the "range". Now...
take notice.....if the market is going to go up, it will go above the "open".
If it's going to be an up-trend, then most of the time it's going to be above
the open. The opposite in a down-trend. There is another number that you
as a trader should have in your vest pocket. That is the "high" or "low"
the day before. If the market is going to be in a trend-up...it has to break
that day high. Opposite for the low and down-trend. (Keltners premise).
As a scalper you are dealing with the "time frames" within the 1st and 4th
quadrant. By the way....that yesterdays "high" or "low" will be in the 3rd
quadrant if the market has been in an up-trend or in the 2nd quadrant if
the market has been in down-trend....same for all the time frames out
side the daily. There is a lot more to all this. As a scalper...you have to
look at each time frame as if it is a quick change artist changing from one
garment to another. OR......a stuttering transvestite arguing with a
hyena. After you've read this....please clean the opium pipe before you
put it back on the rack. I haven't explained my "sitting ducks" and the
moment they start to fly within the "ticks"...(pips). Maybe...some other
time. During the day...the market will go back and forth between the 1st
and 4th quadrant in the lower time frame....especially the "tick".
ciao
Bronk

Haha, this description gave me a good chuckle. Quite the colorful description of scalping.

Hyenas and opium pipes notwithstanding, I agree with at least one of your key take-away points here. Scalping is not a good strategy for newbies. Why? Unless you were born with nerves of steel, it is difficult to manage the emotional swings of such short-term trading.

I'm a bit biased because I tend to be more of a medium to long-term trader (2-30 days time frame), but I think it's in a new trader's best interests to stay away from scalping until he/she feels comfortable with the high leverage and discipline required of it.

Dave:
In reality....you are a scalper...a knight in polished armour. Especially,
when the market was suppose to do what your plan suggested, and
didn't and you got out with a tiny loss. Both you and the scalper could
have gotten in at the same spot. Only you...as that Knight in Polished
Armour had your sights on that beautiful damsel just beyond the fence.
The damsel with that dimple in her cheeks...the ones giving you the
goose bumps. Perhaps after, even going to the same hotel that the
broom tipped-toed in, and made out with the dustpan.

Bronk

deloreanmotors:

It would be very difficult for anyone on this forum to detail an advice on
scalping. Most scalpers have been long time traders....and then went into
scalping with high leverage.....called "High Frequency Trading". You're
talking about guys that will go as high as 100 leverage...but mostly around
20 to 30. They know how to define their entries and exits and are realistic
about their expected outcome. The scalper is looking for something around
5 or 6 pips. A good scalper looks for the highest possible ratio of average
daily range divided by the bid/ask spread. So you're hoping for something
like 5% to 10% of the average daily range...which would be around 6 to
10...maybe 12 pips on eur/dls a day. Anything outside that would be
discovered and exploited by the market. Even giving this kind of information
is like asking you to try out lighting a stick of dynamite in your back
pocket and then looking for an angel in the sky and hugging her. I'm sure
of one thing....you'll get a charge out of it....and if you've been a good
boy, you could probably get the same kind of wings. You should really
stick to "investing". That is "sit on your hands"....and wait for that
trend and longer time average with wider stops. Yet...you could try it
by going with a micro....where you would be losing only pennies and
not dollars. Or keep trying the Demos....then going into the "real"...
and if you get 2 loses in a row...jump back into the Demo and find out
what you did wrong. Once you get back on track....then go "real" again.
There's all kinds of way of getting on the train. It depends on who you
are. If you're a hobo....you'll ride the rods. However, I doubt anyone
knows what I'm talking about. I'm an octogenarian (84 years old)....and
as a kid, an orphan....I ran away from the orphanage and rode the rods.
However, I took the same "rods" going back to the orphanage. So I don't
recommend the rods, tankers, boxcars....except a passenger one. Are
there still passenger trains in your vicinity? With seats.....?
ciao

I am of the view that demo trading is useless, it is good to learn how the platfrom works but because it is riskless nothing is learnt. Aside from this point, you make many good comments.

ciao

I think you will find a lot of people to agree with you on this point. I think this was likewise true for me, as I could never really take demo trading "seriously" enough to learn from it. I think new traders would be much better served opening very small trading accounts (by their own standards) and learning to trade from there. Speaking from experience, the demo will never give you the same feelings and emotions that real (insert your local currency here) in your bank account will.

One of the tools I use is based on cyclical repetition. Once you have solved the cycle frequency in any market, it is possible to section it into timeframes. This not only gives you range probability, on whatever scale you prefer to work in, it also gives you quite accurate timings to expect a buy or sell signal. If you look at the green buy arrows and red sell arrows in this dollar/yen chart, you notice they repeat in each time segment i.e. sub-segment 1 matches the same in the next period, and so on. The next step is to add the higher cycle frequency and the higher one of that, as higher dominates lower. The larger scale turns will override the smaller ones in terms of price direction, or the slope of the market.

Rgds
Tony Gold

Hi,
I am new to curency trading and would like to know which indicator and chart time frame work for scalping.

Hi Shaun,

I just came accros your system and have a question, could explain more in details how you take your positions, if oversold do you take long when the stochastic cross the signal line or when the 2 lines are in the oversold area?