M1 Countertrend Scalping Strategy | Page 874 | Forex Factory

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Attachments: M1 Countertrend Scalping Strategy

M1 Countertrend Scalping Strategy

{quote} No worries, always happy to chat when around. What I meant is: in trend trading梩ake a breakout for example梥ome traders use things like R1:1, R1:2, or they anchor their TP to the last swing high/low. To me, that always felt a bit arbitrary. Why should the previous high or low have any real influence on where price should go next? It抯 just a historical reference point, not a magnet. I used to rely on the Bollinger Band as my TP, and it worked nicely?until it didn抰. Same situation: it felt systematic at first, but eventually the market...
Ah, I see, so I agree with you. TP in trend trading at the last high/low or RR 1:2 or so doesn't make sense. Bollinger or Donchian channels make more sense and I use them.

Now we come to the more exciting part: what do you do if your TP is not reached when trading against the trend?

When trading with the trend, I tend to feel that you can afford to make mistakes and the trend will reverse, unlike when trading against the trend.
trading is like dancing, don't think and just listen to the music!
When you’re trading with a strong trend, you naturally get a wider margin of error — even a less‑than‑perfect entry can still work out if your stop‑loss is placed correctly (assuming you use one).

But when you’re trading against the trend, it’s the complete opposite: the margin for error shrinks dramatically, and both your entry and your stop‑loss (if used), placement must be far more precise.

I’ve been fortunate to meet (virtually) some exceptional forex traders with over 40 years of experience each. What’s fascinating is that they often enter trades in places that look almost random at first glance (often reflecting a cat walking across the keyboard), yet their approach still works. From what I’ve observed, they close a very high percentage of their trades in profit while letting the remaining trades ride out. They manage multiple positions at once and continuously lock in gains, generating enough realized profit to offset the trades they’re still carrying — and still end up net positive.

I mention this because, on the occasions when price keeps moving against me, I apply a similar idea: I continue to buy or sell in line with my bias and close those new positions in profit as price pulls back. I repeat this cycle until price eventually returns to my original levels, allowing me to close the remaining trades at break‑even, a small profit, or even a small loss.

Every trader also needs an edge. Mine is rooted in solid mathematics and statistical probability. The counter‑trend trading I use isn’t KoF; I work with a fixed target price that has at least an 80% probability of being reached.

What I’m really trying to express very poorly, is that the exact entry price matters far less than how the trade is managed. A wide range of entries can work when the management is sound. And ultimately, “trend” itself is relative — it depends entirely on the granularity of the chart you’re looking at.

I do lose trades — everyone does — but the overall result remains net positive because a high percentage of my trades close in profit. The management, not the perfect entry, is what makes the difference.

It has taken many years to develop this way of thinking.
When you抮e trading with a strong trend, you naturally get a wider margin of error ?even a less‑than‑perfect entry can still work out if your stop‑loss is placed correctly (assuming you use one). But when you抮e trading against the trend, it抯 the complete opposite: the margin for error shrinks dramatically, and both your entry and your stop‑loss (if used), placement must be far more precise. I抳e been fortunate to meet (virtually) some exceptional forex traders with over 40 years of experience each. What抯 fascinating is...
I completely agree.

With a substantial account size and proper position sizing (under-leveraging), there is no need to close losing positions that pose no risk to the account itself. You simply let the price return to them.

Nevertheless, some positions are still closed at a loss: when the price crosses our global average entry price, we are in profit and may choose to close all entries at once, as the gain is already very satisfying. The remaining misplaced positions don't matter.
Dax only.
{quote} I completely agree. With a substantial account size and proper position sizing (under-leveraging), there is no need to close losing positions that pose no risk to the account itself. You simply let the price return to them. Nevertheless, some positions are still closed at a loss: when the price crosses our global average entry price, we are in profit and may choose to close all entries at once, as the gain is already very satisfying. The remaining misplaced positions don't matter.

From what I understand, would you also consider an initial position size of 0.01 microlot for a $1,000 account to be too large?
and vice versa is the account too small?
trading is like dancing, don't think and just listen to the music!
{quote} From what I understand, would you also consider an initial position size of 0.01 microlot for a $1,000 account to be too large? and vice versa is the account too small?
It's hard to say, as it depends on the strategy, the asset's volatility, the entry points, the number of positions, spread, swap...

Generally speaking, with 0.01 lots on the DAX梬hich is very volatile梱ou indeed need at least $1,000 per 0.01 lot to start. I began with $500, and it was too small to handle counter-trend moves. But again, it depends on many different parameters.
Dax only.
{quote} It's hard to say, as it depends on the strategy, the asset's volatility, the entry points, the number of positions, spread, swap... Generally speaking, with 0.01 lots on the DAX梬hich is very volatile梱ou indeed need at least $1,000 per 0.01 lot to start. I began with $500, and it was too small to handle counter-trend moves. But again, it depends on many different parameters.
Okay, then I basically see it the same way.
trading is like dancing, don't think and just listen to the music!
On EURUSD, one of my accounts is approximately ?00 and typically supports 20–30 simultaneous trades at 0.01 lots, depending on available margin. The initial cluster usually consists of 5–10 entries, with additional positions added gradually as price moves further away.

If it becomes clear that price may not return in the near term, I start closing one or two positions during pullbacks. This frees up margin and gives me 1–2 trades I can cycle in and out while waiting for a larger retracement. In other situations, I simply hold and allow the structure to play out.

Two weeks ago, I ran into a difficult situation entirely due to impatience and breaking my own rules. Instead of letting the system work, I interfered, which resulted in a full week of trying to recover the positions and ultimately led to a medium-sized loss. Although I’ve since recovered that loss, the experience reinforced how important it is to stick to the process. Something I find difficult to do.

I should also mention that I’m spread betting, as it’s tax‑free when it’s not my primary income. However, the broker doesn’t allow hedging; otherwise, I would be using a different strategy. EURUSD has the lowest spread of all the symbols on my broker of 0.6 pips.
On EURUSD, one of my accounts is approximately ?00 and typically supports 20?0 simultaneous trades at 0.01 lots, depending on available margin. The initial cluster usually consists of 5?0 entries, with additional positions added gradually as price moves further away. If it becomes clear that price may not return in the near term, I start closing one or two positions during pullbacks. This frees up margin and gives me 1? trades I can cycle in and out while waiting for a larger retracement. In other situations, I simply hold and allow the structure...
This is my methodology.

I often talk about under-leveraging, because you must always keep in mind that a strong flow will eventually move against you. Under-leveraging allows you to underutilize the account under normal conditions while still capturing many pips. This compensates for the lower gains per position.
However梐nd this is where it gets interesting梬hen an opposing flow moves against us, we can enter a few unique positions that are much larger than usual. You must enter only a few, and certainly not too early. Quite the opposite. The goal is to shift the overall net price in one go, allowing you to exit in profit on a temporary correction.

In essence, it抯 as if you are keeping a portion of the account in reserve exclusively for difficult scenarios.

You have to identify the most opportune moment, which isn't easy. Short Exponential Moving Averages on higher timeframes are a huge help here; they indicate overextension and, therefore, the likely temporary exhaustion of the price. H1 is excellent for this role.
Dax only.
Slow day.
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On EURUSD, one of my accounts is approximately ?00 and typically supports 20?0 simultaneous trades at 0.01 lots, depending on available margin. The initial cluster usually consists of 5?0 entries, with additional positions added gradually as price moves further away. If it becomes clear that price may not return in the near term, I start closing one or two positions during pullbacks. This frees up margin and gives me 1? trades I can cycle in and out while waiting for a larger retracement. In other situations, I simply hold and allow the structure...
Hi Ronin,
Long time no hear from you, how are you doing there?
Finally, I see you have a system you can rely on.
Done for the day.
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Not my best work today. Did not wait for price to be extended enough. But worked out. Got 70 pips so finished for the day.

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{quote} Hi Ronin, Long time no hear from you, how are you doing there? Finally, I see you have a system you can rely on.
Hi PipsArt nice to hear from you. I'm ok been playing in the background on and off, got fed up of chasing price like a dog chasing a car. Went back to basics and seems promising; still early days.

Hope your well and bring in the pips.
Not my best work today. Did not wait for price to be extended enough. But worked out. Got 70 pips so finished for the day. {image}
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Ronnie Renko
Indicators and Template. No 1 {file} {file} {file} {file} {file}
Dear senior, does your trading system include EAs for MT5?
Indicators and Template No 2 {file} {file} {file} {file} {file} {file}
Dear senior, does your trading system include EAs for MT5?
Indicators and Template No 3 Newbies whom have not uploaded the TRO Set File, yell soon as I have to zip this file for FF uploading. cpfleger {file} {file} {file}
Dear senior, does your trading system include EAs for MT5?
TRO Notes set file needs to installed in the - Preset folder. Load everything onto MT4 first, turn off allowing MT4 to re-configure (I know there is Refresh) but I can guarantee this method resets everything and turn MT4 back on. Open a Pair, add Template and check System Indicators against the screenprint EMS No 1 before you ask questions or raise the flag.. cpfleger {file}
Dear senior, does your trading system include EAs for MT5?
Damn, I forgot the Template, too many files. cpfleger lpp, Change is coming - Bob Dylan {file}
Dear senior, does your trading system include EAs for MT5?
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