Baruch's Forex System Journal

My prefered time frame also. Gives ya the big picture, and small at same time. Sorta. Eliminates more noise.

Jay

 

you and the others would laugh at how short my timeframe might

be and some of you might even say do not waste time and money

trying it realtime .... I will possiblely try it real time but with

1/2 size eur sunday night where tick size is smaller

but only if there is liquidity for me to get out if wrong

 

Hi Jay,

OK. But with a larger time frame you also need a larger s/l?

 

Hi SethArb,

Scalping can be very profitable, I suppose. Looking forward to hear about all the pips you made. But do you need a system to scalp?

 

BARUCH...thanks very much for the reply....it confirms my opinion that using a larger time frame in the currencies helps to "NEUTRALIZE" the incredible volatility of the currencies........SETHARB...... good luck scalping the currencies,,, be careful,very careful....scalping these rattlesnakes requires PRECISE entries AND exits. 10 point gains can vanish in 10 seconds.

 

Hi larrybf,

I agree. So maybe Setharb first should test his new strading method on a demo?

 

No, not if you are going from 30 to 60. Not much diffference. A daily would however. I use 60's until I know I want the trade, then go to a 5 for my entry. I then take the 5 back off the screen unless market is really trending hard. Otherwise, noise will just shake me out of the trade. I use 10 to 15 tics (futures) as s/l. Never more. BTW, the stop goes in immediately as you know how fast these markets can blast off out of nowhere.

As for scalping short term, can definitely be done. MUCH harder though as you are fighting noise and more importantly, the spread. If you have a 3 pip spread and are taking say 5 to 10 pips each time, you have to be awfully accurate.
Jay

 

Hi Jay,
OK, but I suppose you also have to awfully accurate with s/l only 10-15 away?

 

Just the opposite. If you have a 15 pip risk, and average 50 pips on your gains, you don't have to be very accurate (ie high winning %).

You do have to be accurate as far as picking the correct spot if that is what you mean. I think that's always the case unless your stops are way out there. When I place trades its usually at obvious supp/resis, so ya know pretty quick if its going to work.

My original statement on accuracy was aimed at scalping. Since scalping wins are so small, and you are fighting the spread, you must have a very high winning % to make any money. I've done it both ways, and personally, I think scalping is much harder.

Sitting on your butt waiting for a trade can be tough also however.

Jay

 

wrong in using such a small EMA ... it looks like it can work

but only if I hit the sweet spot !