Quick Hello from a new member

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BlowFish
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Quick Hello from a new member

Postby BlowFish » Sat Aug 26, 2006 10:11 am

Hi,

Stumbled across this site a couple of days ago, seems like there are lots of neat (and simple) ideas here. Great stuff.

One thing that caught my eye was the MSheiner scalper indicator. Looks like it uses yesterdays swing highs/swing lows to give trade areas for today. I have searched here (I think I have read every post now!) and on Tradestation forums but can't find much about the method that was used with the levels. I found a thread that TRO started over at TS to present the indicator but nothing on the original idea. Can anyone throw any light on that or point to where i can find out more? I dont have access to all of TS not being a user anymore but used google pretty thoroughly to search there member only forums. I guess its some sort of trade on break of yesterdays swings idea?

Thanks in advance.
Cheers,
Nick.

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TheRumpledOne
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Maurice Scheiner's original post

Postby TheRumpledOne » Sat Aug 26, 2006 6:06 pm

Maurice Scheiner's original post

https://www.tradestation.com/Discussion ... c_ID=48589

How to scalp the market and make a steady daily income.

First of all let me tell you that I have been trading actively for 15 years successfully but most important I make a daily steady income. I work a few hours per day and enjoy the rest of the day playing tennis or golf.
The first 5 years of my trading career I was looking for the Holy Grails. I bought every indicator – oscillator – and strategy that was available. I most probably spent over 20K for all this garbage. I was trading very low numbers of future contracts or shares. Thanks God I did that. I preserved my working capital. There is no indicator, oscillator or strategy that works 100% in all market, all the time. Trust me don’t waist your time. The market changes face constantly and if one indicator or strategy works in one particular time frame, I promise you that it will not work when you start trading it. Especially if it was optimized. After all, the one constant of system trading is there is no perfect system.
THERE IS NO HOLY GRAIL
So now let’s go to the positive side of the story.
If you are an investor or a swing trader the following method is not for you. Stop reading.
I scalp the market in a very conservative way, but most important I keep my target reasonable and I keep my losses as small as possible.
Since I am a day trader, I only look at yesterday’s market open, close high and low.
I started this trading method with 1 contract or 100 shares of any stock or future contract that I wished to trade and build slowly some equity. If I made $1500 profit more or less I then increased it two 2 contracts or 200 shares, if I lost, because I lose once in a while I went back to 1 contract and so forth. Rome was not built in one day, and go slow but steadily. I first let the market show me for the first two hours what it wants to do. I have my coffee and listen to all the prophets on CNBC. So if you are trading for example the Russell or Mid Cap wait 2 hours (exchange time) from the open and do nothing.
The Method:
I have attached a picture so when you read this message try to follow it with the picture open it will be much easier for you to understand.
Open a chart 500 ticks or whatever you prefer and draw lines from yesterday’s open, close, high, low and every minor peak and valley, of today’s first two hours.
Look for an open space in between the support and resistance, the space must big enough for you to scalp the market with a cushion between those lines.

Let me give you a visual example so you will understand better.
Open the ER2H06 chart with 500 ticks for Friday Feb 3 2006.
Draw 4 lines in purple color to identify that this lines are yesterday’s (Feb 2 2006) open, high low and close. So we had lines:
High at 738.20 ( can't see on the attached picture)
Low at 723.80
Open at 737.10 ( can't see on the attached picture)
Close at 727.60

Now up to 10:30 exchange time I had the following peaks and valleys:
728.60 at approximately 08.45am which was a high
722.80 at approximately 09:01am which was a low at that time
725.80 at approximately 09:15am which was an intermediate
722.00 at approximately 09: 38am which was a new low
725.20 at approximately 09:54am which was another intermediate
What I am looking for is a non clustered area
When I look at 10:30am, the lines I had a fairly large empty space was between the 725.80 line and the 727.60 (which happened to be the line of the close of yesterday).
Now you need a little cushion to make sure that this support/resistance will be well penetrated.
So I always add 0.30 points to the line number 725.80 + 0.30 = 726.10
I immediately placed on the matrix window 20 contracts at buy stop 726.10
I also immediately put a limit order at 726.10 + 0.50 = 726.60. As soon as I got filled I places my stop loss at -10 from the line below my entry line which was the 725.20 lines so my stop loss was at 725.10 (I don’t know how to use these new OCO/OSO orders

I got filled at 10:35am and got out at 10:37am less than 2 minutes.

Profit was 20 X 50 = $1000.00 less $100 commission (That trade happened to have no slippage, but expect slippage)
$900 for me is a very good income. I then went to visit a friend and enjoy the rest of the day quietly. My risk at 725.10 was a little bigger than I had hope but trading has its risks.

Now let me tell you what not to do. Don’t scalp tops and bottoms. It is impossible to guess where they are going to be, I assure you no one knows. The only thing I can tell you is that the market flows very nicely between any sorts of resistance and support and if you catch a little portion of it be very happy. Try it you will like it, but start very small (1 contract or 100 shares of any stocks) after that it’s just a matter of growing slowly but steadily. Be reasonable with your expectations (profit) and don’t be greedy. The longer you stay in the market the higher your chances of losing. One more thing, always know in advance your entry point, profit target and stop loss. If you trade without knowing in advance what your entry point, profit target or your stop loss are, you are only hoping and I promise you that you will not make it as a day-trader. (96% don’t). If your first scalp of the day is profitable – stop trading, I always do.
If you have any comments please don’t be shy
Cordially
Maurice.

PS: If anyone wants to share his/her scalping method lets talk and share ideas.

BlowFish
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Postby BlowFish » Sun Aug 27, 2006 1:43 pm

Thanks for the post, it answers my unasked 2nd 3rd 4th & 5th questions too! I'll go through it in a bit more detail once the hangover has subsided a bit :-) (UK public holiday on Monday is my excuse).

As for me I started trading I guess almost ten years ago. After a shaky start I enjoyed some success using a simple moving average, buying/selling pullbacks. I think I may have had a stochastic I used in chop (it all seems so long ago now). I'm not sure exactly where I cocked things up but that I surely did. Unfortunately the emotional scars of my first (and subsequent) big drawdown where far far more damaging than the financial ones (at least I had the sense to quit before wiping out). I am not sure I am completely recovered.

Since then I have followed many many of the paths a trader can follow, most are dead ends. On the bright side I have discovered what I believe to be some simple market 'truths' amongst all the dross. I think I have kicked out most of the BS too.

More recently I have been paper trading and just recently switched live. I am doing OK but there is still some residual fear that I am finding pretty hard to deal with. I find myself closing positions way to soon if price pulls back a few ticks or even just pauses. I can even sit calm and rational but its almost like my subconscious nips in and clicks the mouse! i just know I could do better if i could run a trailing stop or at least give price a chance to test the next level up/down. Despite doing kinda OK I just know things aren't quite right. I wonder if doing the old the old take half off after a point or two and trail a stop on the balance trick might help me. To be honest I dont really want to trade 2 contracts as things are now.

I am trading 'price action' around 'lines'. I quite like the floor trader pivots but really its not the line that is important its how price behaves around that line. Most important its how the trader behaves in response to that price!! As I am sure

Anyway seems like maurice has things sorted out :-)

Cheers,
Nick.

BlowFish
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Postby BlowFish » Sun Aug 27, 2006 1:46 pm

Ahh maybe that was the problem. That thread was in an area of the forum that needs you to be loged in. Is there anyway of accessing those forums if you are not a TS8 user. I think I probably have a 2000i liscence somewhere.

fbreyes
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TS links to TRO's post

Postby fbreyes » Mon Aug 28, 2006 12:03 pm

The above mentioned link in TS (last Feb 2006: Topic_ID=48589) is still
there but any references or links (like the jpg to show that particular
trade) does not work anymore. I tried the other jpg links posted by
other users and they too do not seem to work...

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BlowFish
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Postby BlowFish » Mon Aug 28, 2006 2:05 pm

I think that might be a separate problem. I am getting missing images too in the 'public' sections, but for that particular section of the TS forums its telling me I need to be logged on. Not being a TS 8.0 user I don't have a username and password :-(

Cheers,
nick

monarch
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Postby monarch » Tue Mar 06, 2007 10:10 pm

Hello pirate friends, I am a newbie, and need direction.

I thought trading was hard, but navigating the forum and understanding all those charts from TheRumpledOne makes me dizzy. LOL.

Hope everyone is making some green.

Monarch

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TheRumpledOne
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Re: Quick Hello from a new member

Postby TheRumpledOne » Fri May 06, 2016 5:28 pm

EURJPYM1.png
EURJPYM1.png (61.86 KiB) Viewed 647 times


Blast from the past!
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

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