Once again I bring you a simple strategy and with considerable profitability.
Let's call it as: "FPSinScalping"
It is intended with this system, inputs and outputs "fast" market.
For this purpose goes be used:
- A chart TF M15.
- A MA7 (Smoothed) with the price "ClosePrice"
- A Scalper Band (medium parallel to MA7) with a distance of 21 pips from Central Moving Average
- WR 18%, with levels of -75% and -25%
Once prepared the chart, this is the time to explain to you how the strategy, but not before explaining to you that this method has two alternatives:
1. Reduce volume by 50%, for example if the idea was to enter the market with 1 lot, then get into with just 0.5lot so we can do a reinforcement, when and if the price distance itself 50pips. The objective will be exit in 2 orders in midprice or SL 100pips (considering the 75 pips on 1st order)
2. Enter full volume (1 lot for example) but consider the SL 50 pips
NOTE: we can still further reduce the amount of input which may increase levels of reinforcement, always considering the respective SL.
Having said that, here is the method for identifying the SETUP entry to the market.
Signal for Sell Order
1. Identify the channel probability according to Dow Theory (next month I will write an article about this theory).
When we talk about channel probability, is synonymous with trading channel (main trend in H1 TF or TF M15). Therefore if we are talking about Setup for for Sale, this means that the trend that matters is "Bullish". If you can identify the existence of a channel Bullish means we have found the 1st condition (may seem strange sought setups Sale at Trend Bullish, the reason has to do with the fact that in this strategy trades carry out on counter Trend), risky? Yes a litle, but that is what will serve the MM; orders leveraged bit (low exposure), the SLs or reinforcements to exit.
TIP: A way to identify the trend in M15, will be using inclination of the bands (Image 1)
i. If we are Ascendant "Bullish Momentum"
ii. If we are descendants from "Bearish Momentum"
Image 1 - Definition of the trend, using the inclination of the indicator Scalper Band
1. We must have the WR% above the -75% (would be the same as saying that we have this indicator to "show" condition "Overbought" (image 2).
Image 2 - Determination of exhaustion, using the% WR
2. Let's wait for "price", introduce a candle with the close above the upper band (image 3), at the opening of the new candle we must enter the market with signal Short (Sell).
Image 3 - Setup of for Sale, after close above the upper band
a) Our Target Point, should be the MA7
b) Our Stop Loss. Be determined according to the volume, which entered in the market.
i. If 1lot then SL = 50 pips
ii. If 0.5 lot, then 50pips us do a lot of +0.5 strengthening and put-SL = 75pips (for 2 orders)
iii. 0.25 lot, so do the 1st reinforcement-25pips, the 2nd-50pips reinforcement, reinforcing the 3rd and 4th-75pips reinforcement-100pips. When we reinforcements, the TP should be BE (considering midprice)
This system requires enormous discipline, is not a system that represents many PIPS of profit to each entry to the market and in fact the number of entries is also reduced, but it has proved a good way to enter the market and on balance exit at a profit. It is a strategy to make 150 to 250 pips per month (a little more than that) but if we do the math at the end of the year is about what 2400pips with a good Money Management already is extremely interesting. I leave the challenge to the community to test and leave your feedback here.
Votes of good trades