After trading for a bit (I started less than 2 months ago), it seems to me like short term trading suits me the best, so I am going to master the scalping strategy. Here is in general how it works:
Assumptions: We are going long (the exact opposite of what I describe here will work for going short of course) We are using my indicator settings
Look for MACD cross to the upside(preferable value is -0.05 or lower)
2)After the cross, wait for stochastics to go down. Doesn’t have to be the very bottom, just let it drop as much as it seems to be able to. You can also take a fib of the latest bullish movement to adjust your entry.
Buy (I make the trade size the exact half of my account), put stop-loss below the latest swing low
Keep the position as long as stochastics is high. Exit position when stochastics shows a clear sign of a pullback to the downside. The histogram will also often tell you to close position when the bars start getting smaller
This is not an official strategy or anything, but it’s one of the most attractive trading methods I’ve tried so far. I’ve only made 5 trades with it so far but none of them were losing trades and I will try this out and see how it goes in the long run. Thanks for your attention
Here are the trades:
I also attached a report of the demo account I am trading on.
No, I put stop-loss about 10 pips away so if I do lose a trade I still won’t lose much money. And the thing about this method is that it’s supposed to make winning trades 95% if the time. With each trade I make about 5 pips and if I occasionally lose 10 pips, it wont be a big deal. I still don’t know how often I will be getting losing trades and that’s why I am testing it on the demo account.
As an experienced trader I don’t believe that system will end up having a 95% win rate, but since your intelligent enough to demo it first, and use good money management, there’s no harm in trying it out.
