Scalping strategy to finish the year strong

Hi @AmericanTrader

Thanks for your previous reply and this one.

I would just like to point out, I am not trying to make it out like I’m some sort of professional trader with all the answers. However, I do earn a significant portion of my income from betting on one thing or another including the financial markets.

Anyway, I don’t say my modified strategy is better than your original strategy, it’s just a different take on the same idea. I wouldn’t have really considered it unless I read this post so thank you.

I’ll post it in the next post!

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Where was that last 20 pip.

Right here:

Green arrows show entries.

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Perfect entry signal.
Perfect reverse (sell) signal.
Look where PSAR lines up.

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Looks like your sell signal is coming earlier than the TV indicator. I think I’m going to get MT4 set up and see if can get the exact signal painted that you get.

@samwise

My Greens are set to 31 instead of 32.

Maybe that’s all it is?

I’ll give that a shot.

Also, when you use the @ symbol, as soon as you type it, it should show you member names that are active in this thread. So no need to fully type out names. Pretty cool!

@AmericanTrader On the active sell trade, what’s your exit strategy if you don’t mind me asking?

i got the popup, but it came up with a bunch of samwise’s because I spelled you screen name wrong.

Sorry, and thants.

For that one, it was the PSAR. Market too flat to utilize 6 EMA turn.

Notice how the PSAR could have gotten us in the Buy trade sooner.

I should have trusted the EMA or PSAR instead of waiting for more confirmation on my initial Buy.

Until someone slaps me every time I do that, I’ll still be making those mistakes from time to time. But between the 2 trades, its a win.

(The yellow arrows denote PSAR change)

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@samewise

It could be different broker data aswell.

If you don’t want to be bothered with looking at your chart more than once a day, look at what the weekly chart shows using this very same system.

547 pips from End of June 2021 to end of December 2021.
1095 pips from end of December 21 until PSAR signal in mid-October 22.

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The Modified 5m Scalping Strategy

Any Major FX Price Chart

Three EMAs

  • Upper Green 32 EMA set to high
  • Lower Green 32 EMA set to low
  • Yellow 14 EMA set to close

For Entries

  • When the Yellow EMA crosses above the Lower Green, buy
  • When the Yellow EMA crosses below the Upper Green, sell

Automate Your Exits
Place the stop loss just below the horizontal low of the upper/lower green depending on the direction of the trade.

For your take profit apply a reward to risk ratio of at least 1:1 and no greater than 1:2:1

Do not countenance moving your stop loss or keeping the position open if winning, these sort of tactics will all skewer your results over the long-term and probably impact negatively on your overall profitability.

In order to leverage the law of large numbers, profitable scalping is about taking a large amount of trades not winning large trades! This may seem counter-intuitive to those not familiar with probability and statistics but any professional scalper will confirm this.

A Few Random Thoughts
Firstly, very few people make money in ranging markets. Look back at the last twenty or thirty candles and see if there is a visual trend there. If the channel looks like it’s flatlining, the signal is probably false. Price moves up and down so if you’re about to take a buy trade, it’s probably safest if there has been a recent downtrend shortly before the buy signal and vice versa.

Secondly, as you will see from my screenshot below, I also have MACD open. I do this because it helps me judge the momentum of the market and decide whether the signal is good or bad. My early thinking is that if the histogram isn’t really showing a whole lot of momentum, it’s probably not worth taking the trade.

Thirdly, I keep all my charts for this strategy on one screen as in the screenshot below. This allows me to see at a glance any possible imminent trades and execute within seconds. I have another monitor showing the latest economic news-feed. You don’t need multiple monitors but you should be aware of any impending news that may affect the probability of the set-up being successful.

Finally, I think the original strategy will yield bigger wins but I think this modification will yield more wins. My strike rate is at 64% and I’m still tinkering, it might be possible to get it even higher though I don’t think it’s worth trying to extend the RRR.

Anyways, that’s what I’m currently trialling, let me know what you think and I’ll keep you all updated!

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Hello Dan,

I tried to make a simple simulation program to test the strategy. I used positions of 1 lot per trade for testing purposes. The algorithm made a profit of almost 4.000 USD since 1st of December., however, it was not that profitable the previous months. If you like see below the code and let me know if the idea is correct (I am pretty new in this kind of programming and trading):

input int UpperGreen32EMA=32;
input int LowerGreen32EMA=32;
input int Yellow14EMA=14;

       double Bid=NormalizeDouble(SymbolInfoDouble(_Symbol,SYMBOL_BID),_Digits);
       double Ask=NormalizeDouble(SymbolInfoDouble(_Symbol,SYMBOL_ASK),_Digits);
        
       string signal="";
       
       double UpperGreen32EMAArray[], LowerGreen32EMAArray[],Yellow14EMAArray[];
       
       int UpperGreen32EMADefinition = iMA(_Symbol,_Period,UpperGreen32EMA,0,MODE_EMA,PRICE_HIGH);
       int LowerGreen32EMADefinition = iMA(_Symbol,_Period,LowerGreen32EMA,0,MODE_EMA,PRICE_LOW);
       int Yellow14EMADefinition = iMA(_Symbol,_Period,Yellow14EMA,0,MODE_EMA,PRICE_CLOSE);

       CopyBuffer(UpperGreen32EMADefinition,0,0,4,UpperGreen32EMAArray);
       
       CopyBuffer(LowerGreen32EMADefinition,0,0,4,LowerGreen32EMAArray);
      
       CopyBuffer(Yellow14EMADefinition,0,0,4,Yellow14EMAArray);

#Here you check if Yellow 14 EMA crosses the Lower Green 32 in order to signal for a buy
if (Yellow14EMAArray[1] < LowerGreen32EMAArray [1])

      if (Yellow14EMAArray[3] > LowerGreen32EMAArray [3])
      {
           signal="buy";
      }

#Here you check if Yellow 14 EMA crosses the Upper Green 32 in order to signal for a sell
if (Yellow14EMAArray[1] > UpperGreen32EMAArray [1])

      if (Yellow14EMAArray[3] < UpperGreen32EMAArray [3])
      {
           signal="sell";
      }
                 
      if (signal == "sell" && PositionsTotal()<1)
      trade.Sell(1.0,NULL,Bid,(Bid+200 * _Point),(Bid-150 * _Point), NULL);

      if (signal == "buy" && PositionsTotal()<1)
      trade.Buy(1.0,NULL,Ask,(Ask-200 * _Point),(Ask+150 * _Point), NULL);
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I didn’t even think about that. Great point!

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Good morning to you all
@AmericanTrader
how do you do today

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@samewise

You`d be surprised as to how different the data from each broker is.

I use TV as my analyses platform and CTrader to initiate my orders, as my broker is not on TV as an incorporated broker…and because I want lowest possible spreads. (Less than 1pip for eurusd)

I had to go through multiple data sources on TV from the different brokers to match up with my CTrader Data. Forexdotcom Source is currently the closest, spot on actually- although they do not go back in chart history that far. I have come across data that is different by almost 10 pips (eurusd).

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Same here, but I am looking at CAPITALCOM chart for EURUSD, spread is around 1 pip.

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05:00 GMT - 5

EUR

[Inflation Rate YoY Flash]
(Forex Economic Calendar)

IMPACT ACTUAL FORECAST PREVIOUS
HIGH 9.8% 10.1%
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Ranging for now. No trend established yet. Tight SLs to keep losses micro size until real trend forms.

Hi @theRedHarry

What broker do you use for cTrader?