Greetings
[B]Edit[/B]:
After more testing, this strategy made miserable losses. I don’t recommend anyone to use it in a live account.
First, I warn you that I’m a newbie who have just started to learn forex a week ago. It just so happened that the following strategy that I came up with, made some nice profits in a MT4 demo account. So I thought I’d share it with you guys, perhaps you’re interested in trying it out, and in the mean time give me your tips and advices to improve it.
First, let me explain how did I come up with this strategy.
I noticed that the nature of fluctuating cycles of ups and downs in one minute charts, makes it hit your profit target easily most of the time, while if you set a big stop loss, it would be rare to reach in one minute charts. And even if it hit the away stop loss line, other profitable trades can cover the unlucky few.
Now here is my humble strategy:
[B]10pip M1 set & forget scalping strategy
[/B]
[B]setup:
[/B][ul]
[li]MT4: 1 minute line charts - for 9 currencies: UERUSD - GBPUSD - USDCHF - USDJPY - AUDUSD - EURCHF - EURGBP - EURJPY - USDCAD
[/li][li]Bollinger Bands with a period of 10 in each chart
[/li][/ul]
[B]procedures:
[/B][ul]
[li]Start by browsing the 9 tabs.
[/li][li]Pick currencies that has the chart line touching the top or bottom BB line
[/li][li]If its on the bottom BB line: Buy at market price (keep the order window open, ready to hit the buy button when the price line is as down the bottom BB line as can be)
[/li][li]if it is on the top BB line: Sell at market price (keep the order window open, ready to hit the sell button when the price line is as up the top BB line as can be)
[/li][li]After making the entry, back to the trade tab: double click the S/L or T/P zeros to modify your orders as follows:
[/li][/ul]
if usig 5-digit broker:
[ul]
[li]Take Profit level = 100 (10 pips)
[/li][li]Stop Loss level = 400 (40 pips)
[/li][/ul]
if usig 4-digit broker:
[ul]
[li]Take Profit level = 10 (10 pips)
[/li][li]Stop Loss level = 40 (40 pips)
[/li][/ul]
[ul]
[li]Repeat with each currency that has a 1 minute chart line touching the top or bottom BB line.
[/li][li]Now that you set it, just forget it, and go on with your life.
[/li][/ul]
Some trades will close in a few minutes, some may take hours.
[B]Profit factor: 2.5
[/B]
I’ve calculated this factor as follows:
out 33 trades I made so far, 30 were profitable, and 3 were unprofitable.
3010=300 pips
340=120 pips
Profit factor: 300/120 = 2.5
This factor was reached in a demo account. Since live accounts usually make a less profit factor, we can expect a profit factor of about 2.0
I only tested my strategy in 33 trdes so far. I’ll do more testing and post the results here on a regular basis. I hope other members test this strategy too, and share their results here.
This is my first strategy, as I’m just a newbie who have just started learning Forex. I welcome your tips and advices to be able to improve my strategy.
Best wishes.