Midpoint cross - scalp/swing question
Posted: Sat Jan 13, 2007 2:33 pm
Hi,
I've been reading about trading on midpoint crosses in this forum and have some questions that have come up during some of my trades.
I intend to scalp profits when the price crosses the midpoint on the GBPUSD. I intend to place my orders in advance for the next day's trading, for example:
midpoint today = 1.9000
buy tomorrow = 1.9000
limit sell (profit) = 1.9002
stop loss = 1.8998
I do not intend to spend all day in front of the PC waiting for the midpoint to cross, so I place my orders in advance as above.
My questions are:
- Is the midpoint target for tomorrow the midpoint of today's daily candle? Or is it today's current midpoint when the market opens? Or the last 60min candle's midpoint?
- Without backtesting, how do you determine how much scalping points to take? Manually examining the GBPUSD, showed that the other day, it crossed the midpoint as a short trade (I think it was 1.9426 from memory) and reversed at 1.9425. My limit order did not get hit, so I lost money on the stop loss. I use spread betting in the UK, so lost money on the spread also. I bet £100 per point, so have to keep my stop loss near to the midpoint.
- If I was to do this swing trading, how would I alter the system?
Thanks - alex
I've been reading about trading on midpoint crosses in this forum and have some questions that have come up during some of my trades.
I intend to scalp profits when the price crosses the midpoint on the GBPUSD. I intend to place my orders in advance for the next day's trading, for example:
midpoint today = 1.9000
buy tomorrow = 1.9000
limit sell (profit) = 1.9002
stop loss = 1.8998
I do not intend to spend all day in front of the PC waiting for the midpoint to cross, so I place my orders in advance as above.
My questions are:
- Is the midpoint target for tomorrow the midpoint of today's daily candle? Or is it today's current midpoint when the market opens? Or the last 60min candle's midpoint?
- Without backtesting, how do you determine how much scalping points to take? Manually examining the GBPUSD, showed that the other day, it crossed the midpoint as a short trade (I think it was 1.9426 from memory) and reversed at 1.9425. My limit order did not get hit, so I lost money on the stop loss. I use spread betting in the UK, so lost money on the spread also. I bet £100 per point, so have to keep my stop loss near to the midpoint.
- If I was to do this swing trading, how would I alter the system?
Thanks - alex