Help me to tweak this System! [ Urban Forex 10 Pip Scalping System ]

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1

Hi there,

I found this system at UrbanForex and tested it for 2 Weeks. It has a very good potential when the market goes sideways. But in a strong trending market its a disaster.
I hope to find a few people who are interested to tweak this system with me.

The strategy is based on 2 indicators: Bollinger Bands and Stochastic.

  • Look only on the major pairs. (EURUSD, USDJPY, GBPUSD, USDCHF)
  • A close must happen outside the Bollinger Band indicator
  • Stochastic Oscillator indicator must be in a oversold (below 20) or overbought area (above 80).
  • If market is in a uptrend, look for a red candle. If market is in a downtrend look for a green candle.
  • We will call these the “Signal Candles”
  • Once you see your signal candle, enter in that same direction and scalp your pips.
  • Stops are hard kept at 20 pips.

For further information just search for “10 pip per day scalping urban forex” on YouTube.

2

Use a 5 or even better a 15 min chart only trade from New York close to an hour before London open. That should help with the trend problem.

3

2:1 risk to reward ratio means winning 2/3 of the trades to break even. With a 10 pip target, you will always have to be concerned with the spread. Doesn’t sound like a practical system to me; but go ahead and prove me wrong.