Pro Scalping, by Tommy Charles - page 9
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OK so let me see if I have this down:
1. Enter long/short at price
2. Wait for one trade to become spread + TP (i.e. move spread plus one pip)
3. Close profitable trade
4. Wait for price to return to initial open (price at step 1)
5. Re-enter trade which was closed in step 2
6. If price does not return, place hedge trade at desired loss level (i.e. 10 pips) and wait for price to return, or close for a loss.
Now for a few questions. Do you always wait for price to return to exactly where you entered at (step 1) or is there a +/- 1 pip window or so? I'm trading this right now and it seems like there is a lot of time spent waiting for price to return exactly to where I entered at. Also, do you trade across multiple pairs simultaneously, and if so, do you choose correlated pairs? Or is this personal preference?
Here you go. The only thing that needs to get fixed is the ProfitTarget, BuyProfit, SellProfit. They need to be converted to pips. And somebody might want to look at the Hole Profit check routine. I threw in a Williams R% for shits and giggles. It is easily removable.
Don
EDIT - Also, I kept screwing up the SELL_STOP and BUY_STOP. So, just as a quick fix, I placed a SELL and a BUY instead. That will need to be changed as well... Sorry for the screwed-up code, I'm tired.I've made a change that allows ProfitTarget to be specified in pips. To implement that modification, replace the "Check for Pocket Profit" part of the code with the following:
// Check for Pocket Profit
//---------------------------------------------------------------------------------------------------------
double ProfitTargetIn$ = ProfitTarget * Lots * MarketInfo(Symbol(), MODE_TICKVALUE);
if (BuyProfit >= ProfitTargetIn$)
ClosePocketBuy();
if (SellProfit >= ProfitTargetIn$)
ClosePocketSell();You may notice I made one other change. In the comparison, I replaced ">" with ">="; otherwise if you specify one pip profit, you will need two for the condition to be true.
Now for a few questions. Do you always wait for price to return to exactly where you entered at (step 1) or is there a +/- 1 pip window or so? I'm trading this right now and it seems like there is a lot of time spent waiting for price to return exactly to where I entered at.
My understanding is that it depends on the maximum size of the hole you're comfortable with. Initially, you have 2 times the spread. If that's 4 pips, say, and you're OK with 6, then you could enter +/-2 for your next trade. I guess it's balancing between the possibility of filling the pocket quicker and having a larger hole to fill.
cyclesurf, if I were you I'd close this thread now.
The method works.
Don't get 100,000 people using the exploit and coach the slow ones through it as well. It's so simple, and so easily applicable just close it down man.QM,
I think it's safe to say that you're one of the slow ones he's coaching.
OK so let me see if I have this down:
1. Enter long/short at price
2. Wait for one trade to become spread + TP (i.e. move spread plus one pip)
3. Close profitable trade
4. Wait for price to return to initial open (price at step 1)
5. Re-enter trade which was closed in step 2
6. If price does not return, place hedge trade at desired loss level (i.e. 10 pips) and wait for price to return, or close for a loss.
Now for a few questions. Do you always wait for price to return to exactly where you entered at (step 1) or is there a +/- 1 pip window or so? I'm trading this right now and it seems like there is a lot of time spent waiting for price to return exactly to where I entered at. Also, do you trade across multiple pairs simultaneously, and if so, do you choose correlated pairs? Or is this personal preference?No. Do not wait for the hole to return to where you entered. That's overkill. -4 should be enough. You want to reenter so that you don't widen the hole, so you don't need to wait for it to reach 0.
I don't trade more than one currency at a time. These are the currencies that I trade:
EUR/USD
USD/JPY
AUD/USD
NZD/USD
EUR/JPY
Among these I have no preferance as long as the spread is 3 or lower.
My understanding is that it depends on the maximum size of the hole you're comfortable with. Initially, you have 2 times the spread. If that's 4 pips, say, and you're OK with 6, then you could enter +/-2 for your next trade. I guess it's balancing between the possibility of filling the pocket quicker and having a larger hole to fill.
Exactly. The idea is to ovecome the hole. You can easilly make money if you know which direction the price is going to go in. Unfortunatly if it was easy we would all have our own jets. I don't, and I don't think many traders do. With this method you don't have to guess the price direction, you just have to maintain the hole while you grow your pocket.
Here's today's hole:
Right now I'm 15 in the pocket and 13 in the hole.
The pocket:
actually 3 trades for 5 pips each
...
hey cyclesurfer wouldn't this system work well on EFX or mbtrading because the spread can go to 0?
hey cyclesurfer wouldn't this system work well on EFX or mbtrading because the spread can go to 0?
I'm not familiar with those brokers, but yes, of course, the smaller the spread the better and faster it will work.