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PriceChannel Parabolic system - page 16

Sergey Golubev
Moderator
103309
Sergey Golubev  

There may be some limitation concerning first 2 items (be on the market as short time as possible and take profit value as less as possble) - some brokers are having some limitations concerning scalping. I do not remember the rules for every brokers related to scalping but if you are planning to make the trading in scalping way so it may be good to ask your broker (support) about it. By the way - some brokers are allowing scalping, some of them - not. If not so it is necessary to ask for details cerning those 2 items. 

Sergey Golubev
Moderator
103309
Sergey Golubev  

Well ... now - about risk related to scalping. Scalping is very attractive for traders especially for newbies. But there are some difficulties/problems related to this trading style:

  • it is very risky trading - big stop loss value or no stop loss with few pips taken as take profit. If market is reversed so the position will be open for the long time or close with stop loss. As stop loss value is big one so the trader can lose some part (or most part) of the deposit;
  • some brokers are not allowing scalping so your trades will not consider as a valid ones because of the rules of the brokers. So, before trading scalping - ask your brokers about it;
  • it is very difficult to make scalping trading manually without any EA or scripts. Just imagine - you are watching computer's momnitor for the whole day just to take few pips in profit only :) Scalping making manually is very hard job.

Documentation on MQL5: Standard Constants, Enumerations and Structures / Trade Constants / Order Properties
Documentation on MQL5: Standard Constants, Enumerations and Structures / Trade Constants / Order Properties
  • www.mql5.com
Standard Constants, Enumerations and Structures / Trade Constants / Order Properties - Documentation on MQL5
Sergey Golubev
Moderator
103309
Sergey Golubev  

So, we understand that scalping is very risly trading style. Besides, it is very difficult to make it manually in consistent way for example. What the developers/traders/coders are doing to minimize the risk?

  • they are using timefilter. It is not a secret that scalping is making mostly on flat market condition. So, they are estimating 1 hour or few hours in a day to trade. For example, they are trading since 10 pm to 11 pm every day excluding Friday.
  • they are using martingale as additional feature. For example: if the price went againt me by 20 pips so the other trade is open on same direction but with bigger lot size ... and so on. It is double risk: scalping (very risky) + martingale (very risky as well) = twice risk for trader.
  • using fibo and pivot lines
  • forecasting market condition in programming way

===========

There are 2 kinds of scalping:

  • scalping in classical way (on the way of signal systems - trading on close bar only)
  • scalping traded on open bar. It is most popular scalping for now - such as tick scalping (on close tick of course :) ). Traders are using special indicators such as Tick_MACD and so on for M1 timeframe in Metatrader just to get 10 seconds timeframe in reality. It is most modentr and cool scalping right now.
Sergey Golubev
Moderator
103309
Sergey Golubev  

I remember some talking between very experience trader and newbie:

  • Trader:"do you know that scalping is very risky for you to trade?"
  • Newbie: "yes, I know it"
  • Trader: "do you know that you can lose most part of your deposit in one day?"
  • Newbie: "yes, I know about it"
  • Trader: "So, you will not use scalping in live trading?"
  • Newbie: 'I will use it"
  • Trader: "Why?!
  • Newbie: "because it is very intreresting for me".

:) 

Sergey Golubev
Moderator
103309
Sergey Golubev  

As to me so I like scalping, I used and will use it. Because it is very intreresting.

That's all news. 

Sergey Golubev
Moderator
103309
Sergey Golubev  

For the next few days/weeks we will discuss MTF systems (multi timeframe systems), account protection features (irrespective off how many EAs you are using inside your one metatrasder instance - there are some features which can protect your account), Sharpe (how many ways of calculation, meaning of it and why we need it) and some more.

More to follow. 

Sergey Golubev
Moderator
103309
Sergey Golubev  

Just some practical example about risk - it is my updated statement for this scalping system:


I lost 70 dollars for EURUSD but I won 228 dollars for USDJPY and 83 dollars for CADJPY after that. But anyway - 70 dollars were lost ...

Files:
Sergey Golubev
Moderator
103309
Sergey Golubev  
newdigital:

Well ... now - about risk related to scalping. Scalping is very attractive for traders especially for newbies. But there are some difficulties/problems related to this trading style:

  • it is very risky trading - big stop loss value or no stop loss with few pips taken as take profit. If market is reversed so the position will be open for the long time or close with stop loss. As stop loss value is big one so the trader can lose some part (or most part) of the deposit;
  • some brokers are not allowing scalping so your trades will not consider as a valid ones because of the rules of the brokers. So, before trading scalping - ask your brokers about it;
  • it is very difficult to make scalping trading manually without any EA or scripts. Just imagine - you are watching computer's momnitor for the whole day just to take few pips in profit only :) Scalping making manually is very hard job.

Just to remind about risk related to scalping.

So, if someone is making scalping Signal, or created scalping EA - we know which questions to ask from them, right? :)

Sergey Golubev
Moderator
103309
Sergey Golubev  
Besides, I want to say that most good to make scalping - by using EA.

Sergey Golubev
Moderator
103309
Sergey Golubev  
newdigital:

Just to remind that it was PriceChannel AFL scalping system.


Latest version of PriceChannel downloaded from this post + AFL winner downloaded from Codebase here + MaksiGen_Range_Move MTF from here (optional; but I am using 2 MaksiGen indicators - one for current timeframe and the other one in MTF settings).