A very simple scalping strategy

Set up: Heiken Ashi candles. Bullish GREEN candles have only ONE wick on top, bullish RED have only ONE wick on bottom. All other mixed colour candles and extra wicks are possible signal trend changes.

5M & 1M charts.

Indices: DAX FTSE (London session) DOW NASDAQ (NY session)

Look for a trend on the 5M chart and if verified on the 1m chart open a trade. Bear in mind, unlike currency pairs, the minimum lot size for indices is 0.10.

The aim is ‘A’ to cut losing trades quickly, so beware in volatile sessions to add a S/L And ‘B’ to find a winning trend that can add more positions, with the safety net S/L moving to breakeven.

Where and when you take all or some of your profits depends on the candle movements on the 1m chart.

Once you get the hang of it you’ll be able to open trades with a S/L within a minute, and close trades in seconds.

The rationale is whatever your win/loss ratio is, the most important factor is making more profits than losses. Hence the winning position additions. And Indices are built for fast price action - no time for sleeping.

Best of luck.


BUt does it work???

I’ve been following a pro trader’s live trades for at least one year every day. Yes, it works.

There is one criteria, an understanding of how indices markets work. However, that’s for you to find out.

IMO every strategy I could post would be tweaked and changed by those who think it’s rubbish, and/or they could better. There are no guarantees trading the markets

So, it’s up to you whether you try it out or not.


You are a full time trader?

Yes, although I have enough income to pay for my living expenses. I relate to FX trading as a hobbyist challenge.

This year, five consecutive green months.


can you please makes sure your return ? and are you a full timer part ?.

I cannot understand your questions.

that is great!

Thanks for sharing!! As a new trader, I’m leaning towards the scalping strategy and this trade description was very easy to understand.

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Can u share ur method of scalping

Of course, see above.

Extra info. RED candles are bearish. I would only scalping trade for two hours max. No deviation and close all positions when finished.

With Indicies the long term (30+years) is always Bullish. Even Amazon and Tesla will recover. A good long term investment strategy is to buy every time the stock falls 10%, and keep adding over the years.

Use the 5min chart to draw a price action ranging zone, top and bottom for the last hour, and use the 1m chart to trade within that zone. An easy S/L. Ranging zones present many opportunities, and aim for a 2 pip profit, which is probably 3 candles.

The issue I have with scalping is that day in and day out, it requires constant attention which is wearing. Hence the maximum time scale.


So the market you trade doesn’t matter or it does and you just have to adjust a strategy to the market?

Like, you say use this with indices. But could it work with fx?

I only trade DAX, maybe FTSE, on London opening when I’m in a positive mood, and the price movement is moving in steady waves. Others also trade the DOW and NASDAQ when New York opens.

At least one pro trader spends a max 2 hours trading the EUR with the same set up. EUR/JPY is a very steady mover, most days, but not all. Just depends on major news items on either currency.

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Thanks for the details! Really appreciate it. I guess US traders need to get up a lot earlier than normal to get the opening of the London session! Is that common for pro traders in the US too, being up during that time?

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Very nice!!!

This is a late reply, but for me it’s still encouraging!

I got up to eight consecutive green months, had a minor red month September, and recovered October. Not that I made a lot of money. Enough for a few beer lunches with a mate.

Which is probably why I’m thankful not to worry about money to pay my bills.

I’m working on this myself. But you have to be willing to lose your original position. That’s the problem I have. I get scared.

However, there some entries that are even BETTER than my original entry. In that case, it’s worth the risk.

It’s a work in progress, because I have to get a little better at reading the terrain for seemingly favourable entries.

I admire your approach. Best of luck with it.

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