Candle30 Scalp Method (EA) - FT Stage

[prax 10]

I saw there's many traders attract with scalping method, but rarely found works in the long run. here's my personal research by compiling, optimizing several methods I've found.

the strategy are much simple

trade only with EURUSD

only at rush hour market session (EU, US market)

use 30 M TF

start entry when the candle shown at least 30 pips range.

use stop loss for each

trailing step (5 pips ) for profitable exit.

Overal performance :

use lowest stop order level platform (currently using Tickmill platform, with 0 pips stop order level).

latest active trade :

will keep update at daily basis, any suggestion/critics are welcome.

[jpennybags 11]

prax...

 

I think you will find it very difficult to automate a successful "scalping" strategy. Success (consistent success... which is what's required) in scalping requires an understanding of order flow, and how price action develops and plays out. It also requires that one be able to recognize trades that aren't performing, and to exit these trades with as little damage as possible... and if you can get out with a little profit, all the better. The decision must be made in a matter of a few seconds, and it requires a "second sense"... if you will allow that kind of language.

 

The win rate must be extremely high compared to other trading methods. I can't speak for other scalpers (we all trade differently... passive or aggressive), but I enter trades on 1/1 R/R basis. That initial risk/reward changes with each tick during the trade, and it's a matter of constant assessment as the trade develops.

 

This style of trading is not for everyone. Showing up every day for the "knife fight"... it is just that... can be difficult at times (day-in-day-out you must show up with your "game face" on). Because it suits me, I wouldn't have it any other way. My use of the term "knife fight" may be a bit of a romantic indulgence... but we all need our romantic indulgences for why we do what we do.

 

All that said... from a personal perspective as a retail trader:

 

Anything that can be "thought" can be programmed... it's only a matter of protocol and if/then statements. There may be a way to program what I do every day, but I have my doubts that a retail trader would have the resource to go there.

[prax 10]

thank;s for your valuable advice jpennybags. it's no doubt scalp trading system are not the best thing to turn into automatic system. therefore I still in research for a better peformance result. these current system are another 'version' of several trading method I used. I also put another trading journal simply works as scalp with more 'soft' approach to the market volatility. as I never planned to had programing stuff who learn how to sense and 'thought'. once again an EA are simply an automatic version of any possible manual method, which in my opinion when the manual resulted at 50%, means the EA version should giving less than 10-20% result since the effort are less of thought and sense.

with only a few resource and knowledge since we all retail traders, I intend to put another effort of developing fully automatic trading system. never planned to show no loss trading record, or aim for 100% daily result. will keep anything based on best can get MM ratio, and simply act as traders not as commercial EA vendors

 

seem you have a good experience with "knife fighting" with the market, can you elaborate a bit . as you already stated sometimes it's a difficult days, need to keep u the game face on, but how long are you gonna do this. based on similar situation, I start to thinking to turn everything into logic, with less target profit, but in return I'll surely had an extra time to do something else.

[jpennybags 11]

seem you have a good experience with "knife fighting" with the market, can you elaborate a bit . as you already stated sometimes it's a difficult days, need to keep u the game face on, but how long are you gonna do this. based on similar situation, I start to thinking to turn everything into logic, with less target profit, but in return I'll surely had an extra time to do something else.

 

I think the allure to scalping for most people is the high win rate... psychologically, it's fun to win, even if it's a small amount (also, it's a way of trading that can work in all markets; day in, and day out). What needs to be understood though, is that the margin for error is very thin; much like a knife fight. A trader can stitch together 3 winning trades, and give most (if not all) of it back in a single loss. Your profits are built not from how you win, but from how you loose. In that regard, how one exits a trade is far more important than how one enters a trade. While it is true that crisp entries will make your life easier, it's good trade management that brings success (in the day-to-day scalping business).

 

That is why I think that it would be very difficult to automate a scalping system. That's not to say that it can't be done, but I think that with the resources available to retail traders an automated system must allow for a larger margin of error than scalping provides, and that is where one should apply their resources. Just my opinion...

 

As to how long I'm going to do this: "Until they take my bullets away" (so to speak)... maybe I should've said "knife", but that analogy has already worn thin.