Scalping strategy: finding the exact entry point
I've heard the opposite view, that the entry point is bullshit. The main thing is the right accompaniment and the right exit point. If the support is good - then you can enter almost "on a dime" - and the TS is still profitable.
In addition, the percentage of winning depends strongly on the TP/SL ratio of the system. The higher it is - the more stable the system is. 30% of wins at TP/SL = 3 is considered classic. If "98% of wins - it means that this TS has too low TP/SL ratio and stability.
I consider the breakdown of support or resistance lines near horizontal key levels to be the exact entry point in scalping strategies.
Naturally, I draw horizontal key levels on the M1 EURUSD chart, for example.
Except to formalize the construction of support and resistance lines, as well as key levels.
As I see it, everyone draws them "whichever way they want". In one place there is a support line, and in another similar place - not. In one place there is a key level, and in the other, kind of the same place, there is not.
I've heard the opposite view, that the entry point is bullshit. The main thing is the right accompaniment and the right exit point. If the support is good - then you can enter almost "on a dime" - and the TS is still profitable.
In addition, the percentage of winning depends strongly on the TP/SL ratio of the system. The higher it is - the more stable the system is. 30% of wins at TP/SL = 3 is considered classic. If "98% of wins - it means that this TS has too low TP/SL ratio and stability.
Except to formalize the construction of support and resistance lines, as well as key levels.
As I see it, everyone draws them "whichever way they want". In one place there is a support line, and in another similar place - not. In one place there is a key level, and in the other, kind of the same one, it is absent.
Eh, if it were possible to formalise, I wouldn't work with my hands, but would order an advisor to a programmer and run to an ATM.
I do not agree with the opposite view, that the main thing is maintenance. Proper maintenance can increase profitability of TS by 25-30%, but the accuracy of entering is very important for calculating the working lot, and the bigger it is, the better. It is clear that the entry point is coordinated with risk management (c/l and t/r).
Question - do you want to be right or rich? If the first, then quit trading, do analytics and include in your forecasts different scenarios of expected events, if the second, then enter on assumed accurate entries, but do not rule out the possibility of error, because they will anyway, and they will be a lot (more than 50/50 in the negative side).
For scalping, I suggest the following method would be correct - we determine several key levels and wait for the price to bounce from them, then enter. That is, we do not cling to the train going against it, but jump in when it starts moving in our direction. If it does not go, we wait for it near the next station.
Question - do you want to be right or rich? If the first, then quit trading, do analytics and include in your forecasts different scenarios of expected events, if the second, then enter on assumed accurate entries, but do not rule out the possibility of error, because they will anyway, and they will be a lot (more than 50/50 in the negative side).
For scalping, I suggest the following method would be correct - we determine several key levels and wait for the price to bounce from them, then enter. That is, we do not cling to the train going against it, but jump in when it starts moving in our direction. If it does not, we wait for it near the next station.
Eh, if it were possible to formalise, I wouldn't work with my hands, I'd order an advisor to a programmer and run to an ATM.
So the setting of levels cannot be formalised ??? What kind of TS is it then? It's a "guessing casino" then.
A very sensible and constructive suggestion. The question is exactly where do we jump in?
No, of course you can tell, but only by eye. It's very difficult to explain these levels to the robot.
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It is well known that 50% of a deal's success depends on the accuracy of entering the position.
The more accurate the market entry, the more the scalper can afford to increase the working lot, and thus make money.
The problem is that finding the exact point of entry into the market is not as easy as it may seem at first glance.
Therefore, I suggest that the forum users use their brains or something else and try to think with me about the problem of finding the exact point of entering the market.
Determining the exact entry point
I call the exact point of entry into the market an open position that is at least 1 point profit at the moment of its opening.
That is, if in all of your trades 98% of the time you have seen plus 1 pip profit, it means that you have an exact entry point.
My contribution to solving the problem
I consider breakdown of support or resistance line near horizontal key levels as accurate entry point in scalping strategies.
Of course, I draw horizontal key levels on the M1 EURUSD chart, for example.
I use the Veles MACD Pro Color indicator to calculate waves and close transactions prematurely if the price does not move in my direction within 5 minutes in order not to get into flat spots.
But these decisions are specific to me and depend on the market signature, and are not related to the accuracy of entering.
See screenshot!
Of course, my entry point cannot be called perfect, but it is a probabilistic one.I will be glad to receive any constructive comments or clever thoughts on the topic of the topic.