Simple Scalping Strategy

MoneyTec Forums Trading Strategies Simple Scalping Strategy

This topic contains 40 replies, has 2 voices, and was last updated by  FXGuru 1 year, 1 month ago.

Viewing 15 posts - 1 through 15 (of 41 total)
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  • #888

    ajhardesty
    • 0

    Hi,

    Here is a very simple scalping strategy that I like. It’s a very visual system, so it’s easy to keep a chart running in the background while you do other work, but quickly recognize trading opportunities. Take a look at it on a few charts and see if it something that you can use.

    1. Use a 1 minute chart.

    2. Place a single SMA (55) on the chart. No other indicators are needed.

    3. Entry points (long or short) are where the price breaks the SMA line.

    4. Exit is your call, but watch closely the moment price reverses for two consecutive candles.

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    #889

    goddoux
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    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.

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    #890

    ajhardesty
    • 0

    Here is another slightly more complex system you might want to try:

    Use Bollinger Bands (18), EMA (3), MACD, & RSI.

    Go LONG when EMA crosses above BB center line and MACD is above 0 and RSI is above 50.

    Go SHORT when EMA crosses below BB center line and MACD is below 0 and RSI is below 50.

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    #891

    goddoux
    • 0

    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.

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    #892

    bhale
    • 0

    could you elaborate or post a chart?

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    #893

    ajhardesty
    • 0

    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.

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    #894

    superyen
    • 0

    Hi,
    thanks for the tips, scalping seems nice and i wont even ask for more than 20-30 pips a day. There will be loses too of course.
    I will try to use it and make some pips daily since i have been losing the past 2weeks going for the wrong pair.

    Best of luck to you all

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    #895

    kamyar
    • 0

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

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    #896

    ajhardesty
    • 0

    I think the standard settings, MACD 12,26,9 and RSI 14,70,30 work pretty well, but you may also want to try MACD 24,52,18 and see which works better for you.

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    #897

    Caprica
    • 0

    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;
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    #898

    Gambitt
    • 0

    Caprica which software do you use for backtests? I’d love to do some stuff like that on other systems.

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    #899

    Caprica
    • 0

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

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    #900

    ryjo
    • 0

    Hi Caprica,

    I have a trading system using moving averages. Can you also back test for me? I have been trading this system for a while and looks promising. But I would like backtesting data to verify my strategy.

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    #901

    Caprica
    • 0

    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

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    #902

    leoibb
    • 0

    hello i am very new at this and the language is somthin i do not understand i am trading curencies at the moment with little success i do not seem to grasp trend lines or support and resistance could someone explain how to recognise them bear in mind your advising a complete novice?

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