The currency forex pairs this system works with are (I tested only these pairs);
AUD/USD
EUR/USD
GBP/USD
USD/CHF
Time Frame: H1 & Daily
Indicators:
Envelopes (14)
Heiken Ashi Smoothed_v2 (2, 6, 3, 2)
Awesome Oscillator – AO (default settings with level 0.0)
Accelerated Directional Movement Index (ADX) (settings –period 14, Typical Price HCL/3) Level 22 & 44
MACD (12, 26, 9) (level 0.0)
Explanation
I use candle stick & line charts.
The line chart if the price is in between envelope no trade. Price must crosses above / below envelop. In candle chart wait for the candle to close above / below envelop.
Heiken Ashi gives the clear direction of trade (red for down trend and blue for uptrend)
Trade only if ADX is above 22
AO & MACD must appear above for uptrend & below for downtrend.
Buy when the candle closes above envelop/ Sell when candle closes below envelop.
SL mist be 5 pips above / below the swing high or swing low
Scalping System:
The line chart if the price is in between envelope no trade. Price must crosses above / below envelop. In candle chart wait for the candle to close above / below envelop.
Heiken Ashi gives the clear direction of trade (red for down trend and blue for uptrend)
Trade only if ADX is above 22
AO & MACD must appear above for uptrend & below for downtrend.
Buy when the candle closes above envelop/ Sell when candle closes below envelop.
SL mist be 5 pips above / below the swing high or swing low
To scalp (all above points should meet) as long as Heiken Ashi is blue and the price is above envelop place buy trades for 5 to 20 pips and if Heiken Ashi is red place sell trades. if price starts moving in opposite direction and is in between envelop stop trading / scalping in that direction and wait for the clear entry again.
i was reading your thread, its very interesting. on the chart in envolope 14 you also have a, which looks like, simple moving average. could you please tell me what period it is? and also where i can download “heiken ashi smoothed 2,6,3,2”? im a newbee and i would like to learn from your system! is sculping done on five minutes or 15 minutes time frame? look forward to learn from you!
many thank
mp sangha:5:
I wish I could attach the indicator & template to make it easier. No I don’t use any moving average. The line you see there is nothing but the line chart. I use line chart because at one glance you can understand where the price is heading. Once I understand the trend then I switch to Candle chart to enter.
The tricky part for scalping is I use H1 time frame and M30. I don’t like to go below that time frame. My aim is to get at least 5 to 30 pips in one trade. You can go to my blog [B][I][U]My Forex Trades[/U][/I][/B] (Google it - you can find).
Thank you.
This system looks good and cant wait to try it out. One basic question (forgive me i’m a newbie) - how do you overlay the ADX on the AO. When I load the indicators I end up with 3 data tables, MACD AO and ADX. Thanks in advance…
how long have you been trading with this strategy and what has your results been like? Is it better suited to what kind of market condition? Trending, ranging, etc?
I am trading this strategy for 2 months now (though I have trading experience over 5 years). To check the results please go to my blog (Performance tab). I have updated my last month performance.
I trade intraday and I like to scalp. I usually look for 5 - 30 pips in profit.
And yes I trade only when it is trending.
Please check the details. I have stated everything clearly.
Wow Gloriar! I am really impressed with your stats!
I’m not sure but you may have to put the indis & template into a zip file in order to attach in this forum. Is there not a way to have a downlod from your site? Which by the way is also very nice!
Just check out ur blog… quite many strategy available there… Anyway i’ve download everything u listed here =D~ The envelope MA method should i leave it to Simple or any other option? I apply it to close position is that correct? No standard deviation needed to be set right?
Hi, i had a look at your blog and noticed Update for 01 November to 02 November 2012 results.
FIrst of all i solute you for honestly updating and keeping a solid performance results unlike some! (you know who you are!)
I have not tested the system my self, but can see a possible potential. MY only concern is capital management.e when you enter trades there is no clear and definable stop loss! Target profit is also some what a grey area. In 2 days i counted over 60 entries? is that correct?
How long have you been trading this system and what is the overall R/R ratio?
Thank you for your interest.
First, I never said anywhere that I make only winning trades. I do have losing trades (unfortunately). I did not want to mention this but, because you have asked let me tell you, Money management is a completely different story as everybody has their own risk taking levels. I don’t go too aggressive with it (by aggressive I mean to say using leverage 100%). For me I prefer to take maximum 5 trades of 0.2 lot size for an account size of 10,000/-
I like to scalp, that’s why you saw more than 60 entries for 2 days. I love trading on Fridays (I can catch the volatile market and like to make use of volume). If you have observed, most of them were Friday trades. I prefer to take somewhere between 5 to 30 pips (sometimes 50 pips) If I dought that the market will go against me, them definite I will set SL around 05 pips above swing high. If I can watch the market I wont set SL (just being lazy). And when I see that the trade is completely against me, I will close it because by keeping it open I cannot make use of the leverage properly and freely. I think you have noticed (in performance tab) for the month of October 2012, I had total profit of 1869 pips (2303 - 434).
I hope this answers your question.
Please trade in demo until you are comfortable. It hardly takes a week to understand this system as it is very easy. That was the main intention of creating this. I wanted something where at one glance you must get the picture of market.
And I am trading THIS system 2 months but I have trading experience of over 5 years
Thank you for taking the time to reply to my question. THe reason i asked about you SL is because for them 2 days that you traded you made some great gains from about 80% of your trades, but it took only 2 trades t o wipe out all the gains you made, hence the question about SL. It seems like you hang on to your trades hoping they will go your way? Correct me if i am wrong…
One question is bugging me real bad, you say that you have 5 years experience, but you mention that you only trade a 10k account? According to what i have seen in forex markets with correct risk we can easily double our account every year just on 50 pips every week with 2% risk so if one starts with 3k account then in 5 years the account would be close to 96k or there abouts. THis is conservative and i would expect and experienced trader to make 20% every month … which translates to only 100 pips a week or so. Hence the risk and sl questions. I hope you don’t take offence to any of this nor is this a criticism of any kind.
