Scalping system #17 (Scalping, long term trading)

important to my post above: you allways have to wait that 1 pending order is triggered,then open the next one.otherwise if price turns 1pip before a pending order and comes back,triggers 1 you opend too early,then this all will not work.

use 25tp,50sl on eur-usd,london open, then you cant lose.also use a little bit technical analysis so you dont jump in a ranging market,then this should really work great.

its a martingale guys.
you open 1 buy-pos with 0.01 lot, tp is 50 pips and sl is 100 pips.half way of your sl (-50pips) you open a pending sell-order, 0.03 lots,tp 50 pips (so tp here is sl of the buy) and 100 pips sl.
now you wait,if trade reaches the buy-tp,good, open a new one.
if trade triggers the sell then you open a new pending buy-order,0.06 lots,same sl+tp as the first one.if this order is triggerd, repeat with sell,and so on,as long as course moves 100pips in one direction.you need a volatile pair,like eurusd.
you can also change tp+sl, for example 10pips tp,20pips sl, or 30tp,60sl.
1,max 2pips spread then you can ignore the spread.dont trade this strategy with 3or more pips spread

Hi,i tried the strategy it is the best if you understand it thanks EDwards

and what is the break even point? pls explain more

in what frame we use this strategy??
what time preferred to trade in ?

Hi i wanted to ask if someone has heared about how hedjefounds trade this system a bit similar.. they dont use leverage so much and they maybe buy ever 100 pip or i dont know maybe 50 pip and they do this in a diffrent pairs at once and they know what the average move in pips is for the pair in a month then they wait for th market to retrace or something i dont know exacly all i know is that they have these kinds of roborters and theat they make like a few % profit a months but they have no risk becuase they have the money to go further and further. ...anybody heared anything about this? or has a robort ? or kno
ws the minimum accoutn size to trade this way...

Winny

I put pen to paper as well and this approach is a plain old fashioned grid/martingale. Every time you place an opposing pending order and it gets trigger required a 2x increase of lots - actually over 2x to cover the compounding
spread debt that will have to be paid for each triggered pending order.

Someone prove me wrong, KingHigh

Isnt there anyway to explain this strategy on a chart?

Whew, I think I got it. You Are right about "click". What can I say to help someone like me before - pen and plain sheet of paper can do amazing things :)
Now just have to try in some demo how it looks in real trade instead of paper ;)
Thanks guys!
Let you be with market not against it!

I think I won't be able to explain it any better, sorry. I agree that it's difficult to understand, even from the 3-4th time reading. I had to read it many times myself before I was able to put it all together. Today if I were to start using it again I would need to read it over a couple of times, may be more to write down a plan.
So the right option at this time would be to set up a demo and work on every step, until it "clicks". If it does - you'll use it, if not - simply move on - I always suggest to not get locked on a strategy that doesn't make sense for you at this time. You'll return to it later, and then it might be a whole different experience.
Hope it makes sense...

Kind regards,
Edward

Sounds really interesting strategy, but I have one doubt and one question.
Could someone (maybe Edward) please explain, why in your comment (Submitted by Edward Revy on January 16, 2011 - 10:19.) You say there will be one 0.02 and one 0.04 order?
As I have understood there is "infinite" loop of 0.04 orders. Because as in strategy, you always should open opposite 0.04 order.
For me currently isn't clear what is signal or parameter when and how to stop this loop? of course you'll have to accept some losses, hopefully less than profit ;)
Maybe I can't model exactly situation in my mind, but for me it looks like there is one major problem. My my doubt is wrong because I don't understand all till the last point, but for me it looks we can run in trouble when not very strong trend will start. We will have a bunch of loosing trades opened in opposite way. At first those trades will be locked by opposite trades but as such trend have a lot of corrections and price fluctuations, our trailing stop (60/6p) will be hit and at that point we'll have small profit and remaining loosing trades.
Do I understand this strategy correctly? :)

It should be a broker which allows hedging, some broker outside US.
And a broker should not have anything against scalpers.

please advise which brokers provide such service, much appreciated

hi there, i tried the strategy above mentioned and its one of the best and simplest out there :), one thing though you dont need to cancel the opposite order just let it run 24/7 and keep snowballing the positions.

the trick/s : set the profit target 3times the grid of buy/sel position range
disadvantage: if the price only stagnate within 50 pips for very long time

how i can explain in more detail and clearer :(
i have to register first to this forum !
thanks EDwards and team :)

thanks the team

Sounds like a grid trading, Martingale system. Statistically sooner or later it will whipe out the whole account, but I believe with such small targets we can select a proper time for entry like a London and NY opening where volatility is certain and then it should work. The problem still though is that lot is must be very small and profits will be small too, otherwise chance of wipe-out increase. But again, if we can select a volatile market, like GU on London one, there is not much chance we will have too much iteration in the row before we hit +10 pips and move to BE.