New year, new system.
Thought I would start this thread as I am trying to create a scalping strategy that works for me and I can consistently work with. I have been learning over the past year all I can about Forex and have been demo trading various strategies. Quickly a bit about me, I work from 7am to 5pm every day, but my job allows me to look at charts relatively often, but the strategy should have a number of trading opportunities so I should be able to catch some of them.
Also I know there are similar systems to this, I am using this as 1, a trading diary, and 2, a way of refining my system. So any advice or suggestions are welcome.
I am starting a trading account with £10,000.00, and the system I am starting with is as follows:
1hr & 15min
RSI(10) applied to the close.
Essentially it is a scalping strategy, with a top down analysis, and a set pip target.
Rules for a long trade:
On the 15 min chart, wait for the EMA (5) to cross the EMA (10) upwards. This is the entry trigger, however, before entering, check 2 things.
Firstly is the RSI angled upwards and over 50?
Secondly, check the 1hr chart, is the general trend in the same direction as the crossover?
If the answer to both of these is yes, the trade is on.
Enter, with your TP at 30 pips, and SL at 20pips (inclusive of spread). Risk to reward is therefore 1:1.3 and I will be risking 1% of my account on each trade.
- I have some other ideas about my TP and SL levels but to start with I am going to try this set up and go from there. Our main goal here is for consistency.
- I am planning on only entering one trade at any given time as I know I often get too excited and enter loads of stupid trades.
- I am using IG Trading Platform
Any input, feel free to speak freely.