What is your edge?

Quote from athlonmank8:

you're kinda clueless it seems. Each TF is a fractal of another. Fx gives you leverage to employ any strategy you want on virtually any TF. Instead of arguing I think you should do some research into the subject you're talking about.
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A little harsh, maybe?

Most people who have not yet gotten up to speed on the mathematics of currencies, won't understand how to calculate a Pip, or the Per Pip Value of any FX trade. Its not rocket science, but clearly his post should have been a clue that he needed help, not a brick to the head. :)
 
Quote from Davidee2:


So what is your edge and how do you know that it works? [/B]
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My edge is identifying the trend and then trading a pullback in the direction of the trend.

I know that it works because:
1. Extensive computer testing
2. Longtime realtime profitability
3. Methedology successfully duplicated by my students

EL
 
Quote from billyjoerob:

Can we please stop pretending that "scalping" exists? Scalping used to refer to pit traders who would trade inside the bid and ask. Then it referred to daytraders playing volatile internet stocks, SOES bandits (whatever that is), etc. It doesn't exist anymore. If you've been scalping while the market went from 1550 to 666 and from 666 to 1360, then you've kind of missed out on two massive moves, not to mention the commodity bull market. And any current "scalper" is getting eaten alive by computers, which are much, much better at that sort of thing. So please stop pretending that you're a "scalper," unless that means you make $15 while trading 100 shares of NFLX. It doesn't exist any longer.
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Actually, you make an interesting point. The language has changed over the years, for certain, but the fundamental idea or concept of quick-in, quick-out trading close to the Bid/Ask range, has not change when talking about scalping - regardless of how you do it - and different people do it differently.

FX, seems to be tailor made for the Scalper, but only if they are using the right Intermediary for trade execution. In fact, it is one (if not THE) easiest markets to scalp, if you know how to do it correctly - which basically means, always scalp in the direction of the dominant side of the market - in other words, wherever you see continual higher highs, or lower lows being made on the next largest time-frame AND where you see continually higher Ask, or continually lower Bid prices in-line with price highs and lows.

Scalping is always relative. To the Weekly Swing Trader, a Day Trade might be considered a "scalp." However, to the Hyper Intra-Day Trader, a Day Trade, might seem like a Swing Trade.

Scalping can work in FX and it can be quite profitable, as long as you trade the right price range at the right time, use the right intermediary and stick with price dominance in highs, lows, Ask levels and Bid levels.

To turbo-charge your scalping of FX, you need a really good Magnitude Indicator to help you set the Timing factor for WHEN to scalp the market. NOTE: All of this applies to the M5 Time-Frame or lower.

When I like to roll-up my sleeves and get my hands dirty, I'll switch my screen into M1 Tactical Mode. On that screen, I have one M1 Chart and a Digital Indicator Panel that I call the iPanel. It is basically a good balance between being a Trend and Predictive indicator and it allows me to see what's going on inside all time-frames from M5 up through MN1. Therefore, I always know the optimal direction in which to scalp and that increases probability.

So, yes, you can scalp FX, under the right conditions and with the right set-up, in ways that would be difficult if not impossible in other, less liquid markets.

On another note - I'm going to be playing around with a built-in FX Arbitrage component on the ProTrader trading platform all this week. I'll try to get back to the forum to post my thoughts on how things went using that tool. In the old days, Arbitraging FX was next to impossible, but with ProTrader, I can access multiple intermediaries in dissimilar liquidity pools and the trading platform auto-executes the underlying orders based on how I "make the market" and set the Bid/Ask differential that I want to hunt for during the Arb moment.

Anyway......

I almost forgot my disclaimer (gotta have one of these everywhere you mention another product these days): No. I am not affiliated with PFSoft, ProTrader, or any of its agents/etc. I basically want to know if their stuff works or not. So, I'm going to test it out.
 
Quote from Veyron 16.4:

Actually, you make an interesting point. The language has changed over the years, for certain, but the fundamental idea or concept of quick-in, quick-out trading close to the Bid/Ask range, has not change when talking about scalping - regardless of how you do it - and different people do it differently.

FX, seems to be tailor made for the Scalper, but only if they are using the right Intermediary for trade execution. In fact, it is one (if not THE) easiest markets to scalp, if you know how to do it correctly - which basically means, always scalp in the direction of the dominant side of the market - in other words, wherever you see continual higher highs, or lower lows being made on the next largest time-frame AND where you see continually higher Ask, or continually lower Bid prices in-line with price highs and lows.

Scalping is always relative. To the Weekly Swing Trader, a Day Trade might be considered a "scalp." However, to the Hyper Intra-Day Trader, a Day Trade, might seem like a Swing Trade.

Scalping can work in FX and it can be quite profitable, as long as you trade the right price range at the right time, use the right intermediary and stick with price dominance in highs, lows, Ask levels and Bid levels.

To turbo-charge your scalping of FX, you need a really good Magnitude Indicator to help you set the Timing factor for WHEN to scalp the market. NOTE: All of this applies to the M5 Time-Frame or lower.

When I like to roll-up my sleeves and get my hands dirty, I'll switch my screen into M1 Tactical Mode. On that screen, I have one M1 Chart and a Digital Indicator Panel that I call the iPanel. It is basically a good balance between being a Trend and Predictive indicator and it allows me to see what's going on inside all time-frames from M5 up through MN1. Therefore, I always know the optimal direction in which to scalp and that increases probability.

So, yes, you can scalp FX, under the right conditions and with the right set-up, in ways that would be difficult if not impossible in other, less liquid markets.

On another note - I'm going to be playing around with a built-in FX Arbitrage component on the ProTrader trading platform all this week. I'll try to get back to the forum to post my thoughts on how things went using that tool. In the old days, Arbitraging FX was next to impossible, but with ProTrader, I can access multiple intermediaries in dissimilar liquidity pools and the trading platform auto-executes the underlying orders based on how I "make the market" and set the Bid/Ask differential that I want to hunt for during the Arb moment.

Anyway......

I almost forgot my disclaimer (gotta have one of these everywhere you mention another product these days): No. I am not affiliated with PFSoft, ProTrader, or any of its agents/etc. I basically want to know if their stuff works or not. So, I'm going to test it out.
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Why would you bother with canned apps when you can arbitrage your sim-account from $50k to $10k?

vvvvvrrrrrrOOOOOOM!
 
Quote from atticus:

Why would you bother with canned apps when you can arbitrage your sim-account from $50k to $10k?

vvvvvrrrrrrOOOOOOM!
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Do you trade FX? Do you know how arbitrage works in FX?

Most importantly, do you know why triangular FX arbitrage was created in the first place? And, do you know why triangular arbitrage not necessary on a platform with automated reverse order execution, with access to multiple liquidity pools and multiple price stream algorithms?

I, personally, like the nostalgia of it. If it can be done right, its sort of cool to be able to also say that you Arb the market on occasion, too. I like nostalgia, personally.

Zooooooom!
 
Quote from Veyron 16.4:

Do you trade FX? Do you know how arbitrage works in FX?

Most importantly, do you know why triangular FX arbitrage was created in the first place? And, do you know why triangular arbitrage not necessary on a platform with automated reverse order execution, with access to multiple liquidity pools and multiple price stream algorithms?

I, personally, like the nostalgia of it. If it can be done right, its sort of cool to be able to also say that you Arb the market on occasion, too. I like nostalgia, personally.

Zooooooom!
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You're retarded.

"If it can be done right" ... like how you took your DBFX account from 50k to 9k?

Triangular arbitrage allows the dealer to net some portion of his book w/o dealing with his OTC liquidity provider, but it's primary function is to maintain a zero-arb condition on the natural crosses via a synthetic (cross). They do the triangular arb maths to stay in business.

It is necessary to reduce the need to go outside the book of client activity. It's f*cking CRUCIAL to the dealer for these (and other) reasons.

"Reverse order execution" is absurd.

Triangular arbitrage has no relevance to this discussion. Only trade synthetics if the spread on the natural is wider (or if your handle is Veyron 16.4)
 
Quote from atticus:

You're retarded.

"If it can be done right" ... like how you took your DBFX account from 50k to 9k?

Triangular arbitrage allows the dealer to net some portion of his book w/o dealing with his OTC liquidity provider, but it's primary function is to maintain a zero-arb condition on the natural crosses via a synthetic (cross). They do the triangular arb maths to stay in business.

It is necessary to reduce the need to go outside the book of client activity. It's f*cking CRUCIAL to the dealer for these (and other) reasons.

"Reverse order execution" is absurd.

Triangular arbitrage has no relevance to this discussion. Only trade synthetics if the spread on the natural is wider (or if your handle is Veyron 16.4)
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1) If you were standing in front of me, I 100% guarantee that you wouldn't even have what it takes to look in my direction, let alone approach me with that kind of hubris, as physically you would instantly know better.

2) If you can post a live dbfx account that went from $50k to $9k that does not belong to you, as opposed to creating fictional accounts of things that you don't have evidence for - then maybe you'd have something that somebody can appropriately address. I've lost more than $20,000.00 real dollars in obtaining my education on becoming a successful trader, so I don't need a demo account to remind of how much money I've lost in the earliest years of my trading career.

3) Your knowledge of triangular arbitrage, is just as failed as your knowledge about who I am as a trader. Triangular Arbitrage, was NOT defined by you in this thread. You skipped right over the request for a definition and provided me with a Red Herring, Non-Sequitur response. Triangular Arbitrage is for the TRADER to capitalize on Bid/Ask discrepancies in the market when they occur, on the SAME instrument, regardless of the FX platform the instrument is traded on.

In FX, the TRADER calculates the Bid/Ask differential opportunity, by deriving the Bid -or- Ask value difference between three pairs, resulting in a relative value comparison between the Source Pair and the Destination Pair. In the pair sequence: GBPJPY and GBPAUD, the Bid -or- Ask differential is calculated to derive the opportunity value of AUDJPY, relative to GBPJPY. If an opportunity exists to profit from the Bid/Ask differential, then the market for that pair offers an Arbitrage moment. If not, then the market for that pair is said to be Arbitrage neutral.

4) Obviously, since you've exhibited zero understanding of FX Arbitrage, have not explained the real reason WHY Triangular Arbitrage was created as a trading methodology and have no idea why reversing the arbitraged trade is necessary in FX Arbitrage, it is abundantly clear to me that you need to go back to where ever you came from and get yourself up to speed on the topic, before pretending to be its master.

The need for reversing the executed pending order in a dissimilar liquidity pool in FX Arbitrage, explains precisely WHY Triangular Arbitrage is not necessary when done "right" on a platform that yields access to multiple dissimilar liquidity pools.

If you don't know something, simply ask for help, instead of pretending to know that which you have clearly demonstrated you know nothing about..... FX Arbitrage, is NOT Equity Exchange Arbitrage.
 
Quote from Veyron 16.4:

1) If you were standing in front of me, I 100% guarantee that you wouldn't even have what it takes to look in my direction, let alone approach me with that kind of hubris, as physically you would instantly know better.

2) If you can post a live dbfx account that went from $50k to $9k that does not belong to you, as opposed to creating fictional accounts of things that you don't have evidence for - then maybe you'd have something that somebody can appropriately address. I've lost more than $20,000.00 real dollars in obtaining my education on becoming a successful trader, so I don't need a demo account to remind of how much money I've lost in the earliest years of my trading career.

3) Your knowledge of triangular arbitrage, is just as failed as your knowledge about who I am as a trader. Triangular Arbitrage, was NOT defined by you in this thread. You skipped right over the request for a definition and provided me with a Red Herring, Non-Sequitur response. Triangular Arbitrage is for the TRADER to capitalize on Bid/Ask discrepancies in the market when they occur, on the SAME instrument, regardless of the FX platform the instrument is traded on.

In FX, the TRADER calculates the Bid/Ask differential opportunity, by deriving the Bid -or- Ask value difference between three pairs, resulting in a relative value comparison between the Source Pair and the Destination Pair. In the pair sequence: GBPJPY and GBPAUD, the Bid -or- Ask differential is calculated to derive the opportunity value of AUDJPY, relative to GBPJPY. If an opportunity exists to profit from the Bid/Ask differential, then the market for that pair offers an Arbitrage moment. If not, then the market for that pair is said to be Arbitrage neutral.

4) Obviously, since you've exhibited zero understanding of FX Arbitrage, have not explained the real reason WHY Triangular Arbitrage was created as a trading methodology and have no idea why reversing the arbitraged trade is necessary in FX Arbitrage, it is abundantly clear to me that you need to go back to where ever you came from and get yourself up to speed on the topic, before pretending to be its master.

The need for reversing the executed pending order in a dissimilar liquidity pool in FX Arbitrage, explains precisely WHY Triangular Arbitrage is not necessary when done "right" on a platform that yields access to multiple dissimilar liquidity pools.

If you don't know something, simply ask for help, instead of pretending to know that which you have clearly demonstrated you know nothing about..... FX Arbitrage, is NOT Equity Exchange Arbitrage.
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After doing a little research on the forum, I've noticed that one calling himself Atticus, is quite the deranged lunatic. He trolls the forum, seemingly without rhyme or reason, and injects red herring after non-sequitur, ad nauseam. That seems to be his MO.

Now, that I know his MO, I'll place the Capital Liar on ignore. I guess every forum has to have its Court Jester, and Atticus, apparently turned in his resume faster than anyone else.
 
Quote from Veyron 16.4:

After doing a little research on the forum, I've noticed that one calling himself Atticus, is quite the deranged lunatic.
More...

If you really believe you could execute triangular arbitrage profitably given your set-up, then it's quite clear who is "the deranged lunatic". The dealing banks gave up on it long ago.
 
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