Well, in its simplest form it's just "cost basis averaging" so you would enter Long, let's say, using 1/2 of your full commitment at some initial price. You might even BID lower than the market and force it to "come to your price". But, having then taken a portion of a Long position you are committed to BUY more if the market should come lower, thus lowering your average entry price (your "cost basis") and have completed the process of entering the market "by increments". Also, some time later when you are in profit (we hope...) then you could reduce your commitment by selling 1/2 (an "increment") and then finally selling the rest to go flat again in a "classic" trading cycle. So "incremental trading" means improving your Entry and/or Exit "cost basis" by never going "all in" and also, I'd recommend, forcing the market to "come to your price" using Limit orders in at least some of your entries to improve your "edge" just a little bit more. But in Micro Scalping, Incremental trading has a much more complex meaning, so I won't go into it except to say that the very same principles apply, although instead of 2 or 3 entries, you might be using dozens of entries, staggered to improve your "cost basis" or entry price, and also "incremental" profit taking on small portions of your position which move into profit, thus reducing your position; but then increasing your position size yet again, "incrementally" as the market moves. So eventually you become "flat", but you have executed a long sequence of "incremental" entries and profit-takes along the way... This form of trading is almost unknown among traders, and I've had to invent a lot of technique and analytics to make this viable, but the same basic ideas of "cost basis averaging" and "exposure modulation" (controlling how much you are exposed to the market, increasing it and decreasing it within the same overall trade). So none of that is new, but it just becomes more systematic and somewhat more extreme, and usually works on "intra-trade targets" in the range of 3-10 PIPs or so. This type of trading requires precision at many levels, and involves computer assisted "triggering" to grab those moments when there is significant counter-trend pullback opportunity. Anyway, that's "incremental trading" method. It allows for precise trade management, control over exposure, so that you don't get too exposed (have too large lot sizes) too soon, and anticipate that the market will move against you, as part of your trading plan, with analytics to support your belief that the market will not go against you indefinitely, as that would be "trader suicide" HyperScalper
Here's what happened in EUR/AUD with very high volatility most likely this is a major pivot area with 100+ pip volatility ranges being seen. Depending upon trading technique, as discussed earlier, the volatility could be translated into some nice profits! Or... if stops are too aggressive, then perhaps not. A lot depends upon risk tolerance and trade management, in my view. The image roughly marks the ranges in pips. Interesting for me, the Murrey Math lines have shifted for this week (I fix them at the beginning of each week's trading) so we can see we are around the so-called 6/8 Level which is usually labelled as "Pivot Reverse Major". Murrey is based upon Gann's work on the fractal nature of markets which is a completely separate discussion; I'm not huge on indicators like this but for Swing trading I do use Murrey, again, fixed at the beginning of each trading week so no shifting occurs during the week. HyperScalper
If nobody should use your style of extreme trading, why do you see the need to tell us about it ? You want us to subscribe to your signals ? How much do you want for them ?
If aggressive stop is bad then why did you give me an aggressive stop ? It wasn't like I asked your to give me an aggressive stop. You said 20-30 pips stop. I chose 30 to give you a better chance. Even with my help, your call out has failed, and so it should because even if you chose a 100 pip stop it would still have failed. This is how the market works, it will take the money from the clueless. Contrast that with a non-clueless trade that I put in, it is still in play and still has a high chance of winning.
Just as an update, I have been running an approximation of the strategy I described earlier lately. Not going for a double account on every trade, but really pushing the gains and clipping the losers quick. What I find is that I always seem to be up at some point during the day, no matter how much I was down before. The trades that come back after being up are just psychologically painful and lead to loss of discipline.
In response to the questions about "incremental trading or scalping", here is a live example of a 3 PIP gross profit Long trade using an incremental scalping technique. Note that the Average Buy and Average Sell lines are shown approximately 3 PIPs apart, thus that is the Gross profit figure. Clearly this can't be done without specialist techniques, so no one should attempt this level of resolution, and this trading is done without stops, relying on analytics confidence and "cost basis averaging". HyperScalper
Hey, man, I'm just giving information. In the case of the EUR/AUD situation, this is a "Swing Trade" and so I would handle it with much less precision than other trades. This is not "extreme" Swing Trading, just Swing Trading. I'm not selling "signals" just providing some of my view on trading, in the general interest of everybody, based upon Technical Analysis that makes some sense to me. I've seen lots of Swing Trading systems which tolerate quite a price adversity (as they should), provided that things remain within their Risk Tolerance and the Analytics are "correct". I'm not criticizing anybody, except the OP's assertions. Let's open another thread on Swing Trading, and follow up on the issues of Trade Entry, Price Adversity and Trade Management with some content on Indicators, and the whole community can benefit from the exchange of information. HyperScalper.
Man, why do you give information that is too advanced for us ? Is it not possible for you to give information that is on our level ?
OK, I don't understand. This is the "elite trader" forum. I'm not talking down to anyone, and am sure there are lots of "elite" traders who know more than I do. I'm just sharing my ideas, hoping someone will benefit from them. Learning "how to trade" is a career journey, right? Don't hesitate to ask if there's something I say that is confusing; I'll give you a straight answer. HyperScalper
I started this thread on the topic of Swing Trading http://www.elitetrader.com/et/index...s-should-not-enter-with-market-orders.288408/