Good stuff


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Thanks! I've been trading for about 6 years, but much of that was spent gaining experience (i.e. wasted) in forex. I returned to futures earlier this year, added 2-legged pullbacks to my trading around April, and started passing prop firm evals last month.

I'm very sensitive to my scalping stats, because as you noted the r:r requires a high win rate. And low commissions. I've had trouble previously with micros with the high commissions, but last week I traded micros in my Tradeday account, and after a difficult first day, I was positive every day after.

Give me another few weeks and I'll let you know if I'm making a ton of money. Although at this point I just want a payout that covers the cost of all these prop firm fees before my wife sees our credit card statement.

I agree 100% with this.

I am still trying to rewire my brain for this strategy.

I am going to create an automated algorithm of this. It's simple and effective. I like that.

Have you thought of making use of algorithmic trading?

Not really. There is an element of judgment needed to trade this strategy, and that judgment needs to be spot-on to achieve the high win rates that make the strategy profitable.

Both Mack and Byebyemoney have indicators for 2-legged pullbacks, and I expect these could be adapted to execute orders whenever an entry presents itself. But I doubt it would be profitable. There are too many entries that an experienced chart reader would skip because the context.

On the other hand, maybe some filters could make it work? Say, entering only when the 21EMA is sloping in the direction of the trade and when the r:r is less than 1:2. If I had programming expertise I might be tempted to try it.

You can include all that in an algo. Like you said you can include filters and various money management scenarios and time frames to see when it works best.

You can create an algo to do exactly what you want to do and on top of that it will never miss trade. Once you have created the algo, you can backtest it to see if the strategy has an edge and tweak it as necessary. I find that with manual trading there is no way to backtest properly any strategy to see it's robustness.

I have no programming experience and no intention to learn given the progress I've made in my price action scalping. But I do find algo trading fascinating, and I've read several books on it. Have you found success with algo trading? And to return to the topic of this thread, have you found traders on Youtube with useful material on algo trading?

While chatting thought I would do a quick strategy using the overnight high and low break strategy. Here is the backtested equity curve. Obviously need some work.
Disclaimer: I do not promise you will get the same results.

This is to show you how simple and easy it is to create an algo and backtest it.




Break ONR