THE MACRO PIP

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MightyOne
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THE MACRO PIP

Postby MightyOne » Thu Jul 02, 2015 4:56 pm

What is a 'macro pip' you say? It is simply 10 pips.

What is the purpose of a macro pip?

It is used to keep you in the scalping mindset when trading large charts; instead of seeing a 40 pip stop you see 4 macro pips & instead of seeing a 20 pip gain you see 2 mp.

If you trade 10x smaller and your target is 10x larger then your gains are equal to that of your small charts.

On a small chart you would typically use a 10 pip stop, but on a large chart you can get that number down to 8, 6, or even 4 mp (remember that gains are equal between large and small charts).

Here are some of the other advantages of preferring large chart scalps over small chart scalps:

1) the breakout is always the worst possible entry so one must use what Joe Ross coined as the 'traders trick' entry; all that this means is that you must be in profit at the BO price and not pip later.

On a small chart you need to create space between the trigger and the extreme, use a limit order, and then pray that your spread is small enough so that you get filled before price moves without you.
On a large chart you can lazily use the 'traders trick' & the spread...

2) ...the spread, even a 5 pip spread is only half an mp. Gains are the same but spreads/fees/costs/slippage have less of an impact.

3) Volatility is greatly reduced. Price gaps 60 pips against you? No problem, that is only 6 mp! Again, 6 pips & 6 macro pips have the same value because you are trading 10x smaller.

4) Higher probability trades. Price spikes, widening spreads, whipsaw...those are all small chart problems.

You can scalp with a small chart until you get a series of losses @ which point you must catch a 'home run' trade; they all know this, but a lot of these traders would have you believe that a series of small wins will pay for these losing trades.

5) 'Zero Wait' entries: instead of waiting for 5 trades on a small chart you can place 5 simultaneous trades spread over 5 different pairs.

Think of all the time that you spend waiting for an entry & all the time waiting for an exit & all the time waiting for your next entry and exit :|
There is no waiting, when scalping a large chart, not in front of the screen anyway.
You can take the same number of trades & receive the same account gains as a small chart.

6) Space Wars pays for this strategy:
Lets say that you start at $0.10 pips and work your way up to $2.40 pushing that buy-buy-buy button like the good lil lad that you are. Now every pip that you gain above your %target will give you 8 mp @ $0.30 pip. How? 2.40/0.30 = 8, every pip is multiplied by 8.
7) This strategy pays for Space Wars :mrgreen:

The list of reasons why the MACRO PIP is superior to the MICRO PIP are seemingly endless.

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Re: THE MACRO PIP

Postby MightyOne » Thu Jul 02, 2015 5:32 pm

I am now going to show you how I scalp large charts, but please set your space balls aside, if you had any to begin with :lol:,
and just follow the rules until you have made enough money to do things your way.

This is a trade with an 8 mp stop. Some pairs I will use 6 & other pairs I might get away with 4.

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Re: THE MACRO PIP

Postby MightyOne » Thu Jul 02, 2015 5:57 pm

If you were not in the prev. trade then you could have taken the very next short.

Price fell to our first target and then quickly rebounded to stop us out with a small profit.

All of the trade conditions are true, we are within space, short.

Why wouldn't you just hold short? Because who knows how deep price is going to penetrate
after taking out a low. It is better to just wait for the upward momentum to exhaust itself.

You don't need to micro manage, you could just go about your day waiting for the result of
your other pairs.

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Re: THE MACRO PIP

Postby MightyOne » Thu Jul 02, 2015 5:59 pm

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Goonslinger
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Re: THE MACRO PIP

Postby Goonslinger » Thu Jul 02, 2015 6:42 pm

So, this allows us to target a R:R of say 1-1.5 as a scalper but still make big bucks. With the macropips we have the time to add which actually increases the R:R exponentially.

I'm guessing we can apply the same thing to a weekly chart except we would change it to mega macro pip where 1MMP = 100 pips? OR would 70 pips be more ideal?

I've posted EURGBP on a weekly TF as an example. I would go short on the bar after the pin bar.

Should be weekly highs on the diagram.
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Re: THE MACRO PIP

Postby MightyOne » Thu Jul 02, 2015 6:55 pm

Goonslinger wrote:So, this allows us to target a R:R of say 1-1.5 as a scalper but still make big bucks. With the macropips we have the time to add which actually increases the R:R exponentially.

I'm guessing we can apply the same thing to a weekly chart except we would change it to mega macro pip where 1MMP = 100 pips? OR would 70 pips be more ideal?

I've posted EURGBP on a weekly TF as an example. I would go short on the bar after the pin bar.

Should be weekly highs on the diagram.


I am now going to show you how I scalp large charts, but please set your space balls aside, if you had any to begin with :lol:,
and just follow the rules until you have made enough money to do things your way.


This is not Space Wars, there is no accumulation.

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Re: THE MACRO PIP

Postby MightyOne » Thu Jul 02, 2015 7:00 pm

Decision Points:

00:00 to 02:40
Decide if you are going to trade the pair

08:00 is this trade working for or against me?
KEEP or LIQUIDATE?

12:00
KEEP or LIQUIDATE?

16:00
KEEP or LIQUIDATE?

21:20
Check your charts one last time.

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Goonslinger
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Re: THE MACRO PIP

Postby Goonslinger » Thu Jul 02, 2015 7:15 pm

Is there any reason why those particular times are chosen or is it arbitrary?
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MightyOne
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Re: THE MACRO PIP

Postby MightyOne » Thu Jul 02, 2015 7:30 pm

Goonslinger wrote:Is there any reason why those particular times are chosen or is it arbitrary?


The bars close at 02:00 :lol: jk jk

I have always used halves and thirds to divide my day...
feel free to use the times that you wish.

2:40 is 1/3 of 8 hours & 8 hours is 1/3 of a day.

aliassmith
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Re: THE MACRO PIP

Postby aliassmith » Thu Jul 02, 2015 9:34 pm

MightyOne wrote:
GBPUSDM15.png



Nice thread, Ill follow along with ya.
Trade Your Way as Long as It Makes Money!

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