rjrow104

Do the math, its called expectancy, (90%*.5) per contract= .45/contract (10%*1.5)*all contracts=.15 Loss per contract the difference is your expectancy so you will average .3pts per every contract Now, this is obvious and I am sure many on here already know this, but make sure that you check this across at least 1000 trades, and thats pretty low but if your aggressive its a pretty good measure

exit plan is imperative. another note. I have never met a successful trader that risked more than 5% of his account on any one trade, so I am assuming by the fact that you posted on a forum how to handle a $20,000+ position you might have used more than 5% of your account. If not then more power to you. BUT using more than 5% of your account with no exit plan means your money will be parted from you soon. I am not being mean, I've had much of my money parted from me due to bad decision making! just trying to pass on the wisdom, and I agree with the hope comment. the minute you are "hoping" for movements in a market, you don't need to be in it.

Hey, So I am not being discouraging by saying this. But, if you are dealing with such small intervals and tp and sl 3 pips, it is going to be very wise to break down price further. I am getting ready to set up a tick depository and plot the results vs a milisecond time graph and monitor the rates of change between ticks, I think the most important thing before you start your research is to determine what market conditions are conducive to this type of trading style, because we know that there is no one system that can trade all markets. So it is important to make sure you find a time and place where your system will succeed. In my own opinion and from my scalping system I am building, I think range-bound markets are the most conducive for scalping type trading. A range is characterized by a failure of higher highs and lower lows, and looking for price swings almost like a sin wave. of course it doesn't always look like that but with what your looking to do, i think it would be wise to take a range bound indicator and then try and predict short term price moves by using a combination of time series analysis and using rates of changes of different intervals to look for price movement in different directions. because with your current setup the only recommendation i can make is to make sure you use oanda as a broker to keep your spreads as small as possible.