[Richard III]

Walter,

I like your approach, clean and simple. How do you determine the number of pips to use. Keeping in mind that MT holds a minimum stop of 2X the spread or in the case of a trailing stop a minimum of 15 pips. It seems the down side risk is ordained by the trading gods.

With a good argument 5 pips stop below the swing plus the amount of pips in the three bars following the swing then the spread added in at entry would make a desent RRR difficult to obtain when scalping.

What do you think?
Richard

[PYenner]

The markets have lacked confidence for much of the year.
It has lead me to look for shorter quicker trades with less drawdown.
These days I tend to scalp out before "that sick feeling" sets in.
Currently prefer a quick stop and wait rather than risk "double sickness" in a "less secure" market but it depends on the day.

[walterw]

Originally Posted by Richard III »

Walter,

I like your approach, clean and simple. How do you determine the number of pips to use. Keeping in mind that MT holds a minimum stop of 2X the spread or in the case of a trailing stop a minimum of 15 pips. It seems the down side risk is ordained by the trading gods.

With a good argument 5 pips stop below the swing plus the amount of pips in the three bars following the swing then the spread added in at entry would make a desent RRR difficult to obtain when scalping.

What do you think?
Richard

HI Richard... and once again welcome aboard ¡¡

Here we have a topic called "forex broker type"... I learned here on TL when I started to look into forex that there are "Forex Bucketshops" and there are "Forex ECN`s"... wich is very diferent the impact on your trading, from what you mention in terms of wide spreads and some non conveniant non-tight numbers...

So far I am experimenting with a ecn type broker at efx... very competitive spreads and costs as well...

Bruce (Pyenner) just mentioned his scalping tendencies and taking small risk... I am also on a very similar situation... tight stops... with the right broker you may want to consider a max 3 pips below your pivot...

If you will trade larger timeframes like sundowner is doing, you can have a little more tolerance, maybe up to 6 pips below the pivot, but we must understand he is also working with much larger targets...

hope this brings some answers... cheers Walter.

[Richard III]

Thank you ,Walter. I will look into EFX.
Regards,
Richard