Hi Everyone,

This thread is specifically geared towards a discussion regarding scalping and other intraday trading techniques and is moderated specifically by DailyFX Analysts. Please feel free to share your ideas and experiences regarding this style of trading in this thread.

Happy Trading!

Kate

Not to sound flippant, but this is not exactly rocket science. If it goes up BUY, if it goes down SELL. Don't be greedy and do it all over again.

hi...

not sounding flippant....just silly..

What you suggest is the fast way to an empty account by continually getting stopped out...

It takes a bit more skill than traders give it credit to be profitable scalping...If it was that easy everyone would be doing it ..but they dont.

__________________
regards

John M

Live long and prosper.
Any information in this post is for discussion purposes only.

Hi,

Yes all that you say is true. But maybe as silly as it may sound, what everybody writes and preach in trading "textbooks" could be wrong? Perhaps yes it is as silly and simple.

I think one of the best intraday strategies out there involves trading the news. Given a large surprise in economic data, markets tend to clearly lean in a specific direction through short term trade. Drawdowns are relatively small: if a trade goes against you, you immediately know you were wrong and get out. If markets prove you "right", you stand to make anywhere from similarly small to large profits in post-news price action.

As an example, check out today's "Trading the News" report.

http://www.dailyfx.com/story/tophead...020282758.html

Given a softer-than-expected home sales print, the trader would've gone long the EURUSD at approximately 1.3453 at 10:05 EST. The pair later went on to hit highs of 1.3471 on dollar-bearish sentiment, allowing for approximately 15 points in profits within a short amount of time. Now, the EURUSD has recently reversed momentum and turned lower, but it stands a mere 5 points from entry price and a good distance from the proposed stop below 1.3440. If it trades downward, the trader could be stopped out at an approximate 20 point loss, but it is fairly safe to say that profit targets get hit more often than not.

I am a believer in cycles. The gbpusd 5 minute chart shows a cycle length of about 4 or 5 hours from one low to the next low, most easily seen in ranging markets. If you buy a turn up from a low swing, you can expect the upmove to run for about 2 hours to make a cycle high. The use of time in trading is about as important as price.

I am brand new to this, but I have had luck with my settings and the GBP/CHF. Netting 20 pips each time . I am finding that in currencies you have to learn the basics, fundamentals, and tech analysis and then learn to apply them. I see fundamentals moving more the market trends, and using charts for intra day scalping. Just my 2 cents


I enjoyed the FX power course. it was very helpful

I just tried a strategy where I went long and short(hedged) gpd/usd at 1.9735 and when the news broke I cut the long at 1.9716 (that's where it popped to) and then kept the short open and closed at 1.9700. Not much of a profit but it was a decent return on an investment of 20 minutes...if it was three round lots instead of one mini lot....small steps. Still I guess it is risky guessing when to cut the losing side...wait this is forex, of course it's risky. Silly me.

P.s. I like your style spunky. It's a great way to earn some money and pass the time during a slow day....like the last two...snoorrrrrr.

That's an interesting strategy, but of course it implies that you expect markets to retrace their post-news move. I know of at least one trader who would make it a habit to fade post-news rallies or drops on big events, and I can tell you that it was a very high risk/high reward strategy.

Depending on the news release and the actual results, it could be dangerous trading against the initial move. As the writer of our daily "Trading the News" report (available on DailyFX+), I can tell you that trading in the direction of the initial move can be a solid scalping strategy.

As I wrote in one of my posts above, you assume relatively little risk when you trade certain news events. If markets move significantly against you, your position is closed at a small loss. At the same time, strong post-news extension can often bring bigger profits.

Does anyone want to share experiences of successful post-news trading strategies?

One strategy does not work in ALL environment. Spread trading described above works in a rangebound market but is a prescription to disaster in a trending market. For example, it is my observation that Tokyo session is generally rangebound, so spreading/grid/short straddle works. But London session generally trends, so momo works. And New York session chops than slowly grinds one way.

So you need a different strategy for different market environment. Those who profess superiority of one trading style over others are blinded to their own intellectual hubris because the market is dynamic not static.

My observation is on EUR/USD only, I don't know how other pairs act.

The Bank of Japan is expected to keep rates unchanged and the USD/JPY seems poised to test the January 29 high at 122.17.

Go Long @ 121.80 limit
Profit Target @ 122.17
Stop @ 120.95

I think this is a high probability setup and I'm ready to trade it with a decent position size. However, things can easily go wrong. Let me know what could possible deny this trading setup. A break below 121.50? Carry Unwind? BoJ rate hike?

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That was a nice trade idea driven by the fundamental factors in play. Basically you assumed that upside momentum would continue and it has.

I have just started trading recently and the strategy that worked best for me was trying to predict very short term with a mix of fundamentals and technical indicators, Fibonacci and MACD being my favorites. Eyeball the very short term 5-min 1 day chart to get a feel for where the oscillating 'price wave' will move in the next few minutes-half hour.
Once you see a signal for reversal, try to estimate whether the move would be potentially larger than the bid/ask spread. Then, buy in, set the limit 3-5 pip above the break/even price (or below, if you are shorting). Use max leverage so that you get a decent return for your effort.
This strategy is pretty laborious, and you might end up doing 20-30 trades within few hours, each lasting 5 mins-2 hours.
Disclaimer: this strategy has only 3 days of 'track record', which is nothing for markets, but it yielded handsome returns so far.
Happy trading.

Our previous USDJPY trade worked out just fine and since the same fundamental factors remain on play we think we can do it again. Over the past week, the interest rate differential between the US and Japan has widened significantly and dollar strength will probably continue. However, I recommend waiting for a small retracement since the dollar looks a bit expensive.

Go long @ 122.01 limit
Profit Target @ 122.44
Stop @ 121.70

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Baffled by this uptick on EURUSD. Short 3290 will add below 3285.