The Perfect Edge

Folks,

Just to check back...

I am making nearly 1% a day on scalping with a 67% winrate currently. (I know this will not last forever!) I have been testing this since 2/28/06. The length of trade is from 4 minutes to two hours....no indicators...Its all about waves and patterns within a relationship between two pair. I cannot say more ok? I got this idea from another trader, but added my tweaks which improved it ten-fold!... so it is mine now...I appreciate all the positive comments and study projects that you Elitetraders have given me....I am getting there....it takes years ....just perservere and do not give up EliteTraders.

I call my new system "Spreader". For the scaling I have a new tool that I wrote...."Compounder". My thanks and acknowlgements go out to Yakov, my new Israeli friend :)


I start my scalping at the London Open and trade as long as I can keep my eyes open here in Denver, CO.! (now how do I apologize to all the scalpers that I have blasted over the years!) After about four hours, I need a break...then continue if I need to in the USA session. But if I am around 1%, I just take off of trading for the day and take a nap then work in my other Job. There is not much trading after 10:00 (mst) anyways...Getting flat and banking the profits...instead of a carry is a luxury of scalping and short-term trading...so I am really enjoying it!

The carry for interest is just a bonus...scalping is where it is at for me just now, as I noticed I was missing too much money in the "carry" portion of the portfolio. You know trading for the positive interest removed a lot of fear from me. But you still need to take losses. There is really no way to avoid it. If you can make money at a faster velocity jump on it...

The only pair for the carry trade as I see it just now is the GBP/CHF...

The work of trading continues...and this is hard work!

Michael B.

P.S. I use my favorite scaling approaches to accelerate the time in the trade...
 
The spreader is going well. I have set my goal for 5% per month and I have reached it 17 days early. I continue to trade but I am taking it easy.

I have put on 7 trades so far this nice Sunday evening and have banked 1/2%

Michael B.
 
Quote from ElectricSavant:

The spreader is going well. I have set my goal for 5% per month and I have reached it 17 days early. I continue to trade but I am taking it easy.

I have put on 7 trades so far this nice Sunday evening and have banked 1/2%

Michael B.
More...

Post some trades in real time

we'll see how good it really is

If you dare
:D
 
Quote from ElectricSavant:

dude you aint gonna re-engineer it...so just forget it...
More...

Keep it up ES... good trading...

My long entry on Friday on the EUR/JPY @ 143.605 is looking quite nice right now...

Keep it up brotha...
 
Electric...you need to stop thinking small time. You are your own worst enemy, you are always talking about % returns and microscopic capital. 1% a day is meaningless because you will never be able to get 1% on large amounts of capital. Instead, start thinking about making $ every day. If you are making $100, then double your size and make $200. Then, shoot for $400, $500, and then $1000....and now you are finally a trader. You can make enough money in a year to pay off your condo.... make enough in 5 years so that your wife won't have to work anymore, and you can even upgrade that 1991 mini van of yours.

Target the $ every day, grow your account, and turn your trading hobby into a business.

I wish you continued success, but I hope you break out of your mold soon!

All the best,

Mike
 
I am a trader...

I thought 60% a year was good.

This is hard work to scalp....and I like to set modest goals so that I may feel like I am doing my job and I reach completion of a session well done. I am up to 12 trades so far...how many traders can say that this evening?

you sound like Wifey... :)


Michael B.

P.S. I was thinking of skipping the London open...now look what you have done...now I feel I am too lazy and will be trading all night!!!

P.P.S. This fricken system works all of the time...even during the slow times...I gotta sleep!




Quote from mschey:

Electric...you need to stop thinking small time. You are your own worst enemy, you are always talking about % returns and microscopic capital. 1% a day is meaningless because you will never be able to get 1% on large amounts of capital. Instead, start thinking about making $ every day. If you are making $100, then double your size and make $200. Then, shoot for $400, $500, and then $1000....and now you are finally a trader. You can make enough money in a year to pay off your condo.... make enough in 5 years so that your wife won't have to work anymore, and you can even upgrade that 1991 mini van of yours.

Target the $ every day, grow your account, and turn your trading hobby into a business.

I wish you continued success, but I hope you break out of your mold soon!

All the best,

Mike
More...
 
Folks,

mschey I consider a friend. So please do not misunderstand these posts. He is trying to help me grow to a higher level...he means well.

Michael B.
 
Quote from ElectricSavant:

I am a trader...

I thought 60% a year was good.

This is hard work to scalp....and I like to set modest goals so that I may feel like I am doing my job and I reach completion of a session well done. I am up to 12 trades so far...how many traders can say that this evening?

you sound like Wifey... :)


Michael B.

P.S. I was thinking of skipping the London open...now look what you have done...now I feel I am too lazy and will be trading all night!!!

P.P.S. This fricken system works all of the time...even during the slow times...I gotta sleep!
More...

I am unsure where you stand today, but, I believe that you are trading a small account. 60% on a small account is really not spectacular performance. (Last year on my prop account, I made 700% and I have a good amount of capital in there! I am not bragging here, but just trying to impress upon you what can be done when you decide to push your egde. )

That being said, I think you could be one of the few that can really make a living from trading if you can break out of your own box. Your own limiting beliefs about small account size, compounding, and time. Why wait, if you can increase your $ today, and reduce your time substantially? Do you really believe that your edge will be around for 20 years or longer? Most edges, have a finite life, and in todays market, they cycle every 2 years or so. When you have and edge and are making money, you must push that edge because it will disappear. (for god's sake, listen to your wife....she know's what she is talking about :))

Think about this, you could increase your size by 20%, not impact the market, not take on much more risk, and give your self a 20% pay raise. My guess is that you could increase your size like this 5 or 10 times.

All the best,

Mike
 
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