Simple Scalping Strategy

This is a very good strategy. I traded it with success. Thank you for sharing.

…I catch the trend on the 5-minute chart I am looking for angle and separation on the 5-1 and 13 EMA following the crossover, and for the MACD histogramm above 0 and also I like to see angle and separation on the MACD lines. I stay in the trade as long as to two Ema’s on the 5-minute chart do not converge.

Thank you for the reply. I also worked with the system. You may want to try the following and let me know what you think, my e-mail address is goddoux@msn.com.:

–On one screen I have a 5-minute chart. I use it to follow the trend. I has the same settings as the 1-minute chart, except that the 13 EMA is changed to an 8 EMA.

–On the other screen I have a 1-minute chart set up according to your original system. I added a 5-1 EMA and a 13 EMA, and the MACD.

I catch the trend on the 5-minute chart I am looking for angle and separation on the 5-1 and 13 EMA following the crossover, and for the MACD histogramm above 0 and also I like to see angle and separation on the MACD lines. I stay in the trade as long as to two Ema’s on the 5-minute chart do not converge.

Thanks George. That looks good.

Generally speaking, I try to stay away from most of the lower level indicators for scalping. I have ADD and they seem to cause too much distraction for me. Anything on the chart itself, like MA, SAR, BB, etc. seems to work better for my unfocused brain. I provided the BB option above because I have tried it and it does work, but again for my taste, there is too much going on, especially for scalping.

thanks for sharing
would u mention that what is the right setting for MACD and RSI in the system
thanks a million

Okay, I have just back tested this system to see if it will perform, and I must be missing something here because the results are not very good.

With 100,000 bars of 1 minute data on the EUR/USD pair and fxcm’s spread of 3 pips I got the following results:

As you can see only 20% of the trades are profitable and the profit on each trade is not high enough on each trade to warrant using this system.

The wealth lab code for this system is here:

{$I 'fxcm setup'}
var Bar: integer;
var SMA1: integer;
SMA1 := SMASeries( #Close,55 );
PlotSeriesLabel( SMA1, 0, 900, #Thin, 'SMA1=SMA(#Close,55)' );
for Bar := 20 to BarCount - 1 do
begin
if LastPositionActive then
{ Exit Rules }
begin
if (priceclose(bar) < priceclose(bar-1)) and
(priceclose(bar-1) < priceclose(bar-2)) then
sellatmarket(bar+1, lastactiveposition, 'exit');
end
else
{ Entry Rules }
begin
if crossover(bar, #close, sma1) then buyatmarket(bar+1, 'entry');
end;
end;

I use wealthlab developer. But there are a number of other products that will let you do backtesting, like tradestation, metastock pro fx, etc.

sure. I can have a look at it for you if you like.

you can email a description of it to me at: xxxxxxxxxxxxxx

Note there is an underscore between the two words in the email address