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Scalping system #7 (Great GBP/JPY 1M scalping strategy)

So here is a strategy I have trying to work out fot the past month, and I seem to be getting better at it. What would be very nice, is if anyone can help me tune it a bit more.

Currency: GBP/JPY or USD/JPY (though i use it mainly on gbp/jpy:
Timeframe: 1M, 5M, 15M
Indicators: 3 sets of bollinger bands:

1) Period 50. Deviation 2 (RED)
2) Period 50. Deviation 3 (orange)
3) Period 50. Deviation 4 (Yellow)

(the template for this bollinger bands can be downloaded form this post)

Once you load your template you will notice the three sets of bollinger bands. Now, price will constantly range between these lines.

Sell strategy:

When price crosses the upper red band , at least half way to the orange band (if it gets to the yellow band is better but not as usual) Then the price will tend to retrace towards the center of the bollinger bands, you profit form this retracing.

Buy Strategy, it is the same as selling, the difference is that we will wait for the price to range between the lower red and yellow bands, and trade the retracing towards the center.

Tips: do not trade on ranging ,or quiet markets, do not trade previous to news releases. Go for 5 to 10 pips. Great system to trade between opening of london session and the closing of the japan session.

Stop Loss: since this strategy requires you to look at the screen (remember this is the 1M time frame) I tend to have two kinds of stops: time based and loss based.

Time based: Try and figure out how long will it take the market to get in your expected direction, if the time that you planned is already due, then close the order. No point on waiting for a loss...

Stop Loss: Since you are trading a very tight time frame your stops should also very very tight. Sometimes, you will profit from a 3 minute trade and you wont be able to set a proper S/L. So your stops will be given to you by your money management system...

What I would like to do is to study wether to add or not some extra indicators. I attach the results from my last week 102% profit, +80% of profitable trades.

Any help is welcome

Chelo

Template is attached as Rar file and goes in your templates folder in the MT4 directory...

DetailedStatement_0.html
1minuto_0.rar



http://forex-strategies-revealed.com/


It is a great strategy and so are the results!
Thank you very much. Your contribution is greatly appreciated!

I'll take a look at the strategy (most likely this week) and will be glad to share my views and ideas about possible further improvements.

Best regards,
Edward.

Hey very interesting i also have interest on this one thanks.

Something I forgot to mention about this strategy.
Notice that the strategy mentions three time frames: 1m 5M and 15M. Although you would be trading this strategy on the 1M time frmae, use the other two to make sure you are no trading against a stronger trend.

Also bear in mind important res/support levels, and do not expect the price to bounce right of the first band as soon as it touches it, it takes time to make up its mind.

Very important to demo trade this one, that way you can get the feel of the pair and how it behaves in such a small timeframe, it can be tricky.

Best of lucks

Chelo

Amazing system,would you tell me how long you have tested it,what's the average profit for a week just trading GBP/JPY

Regards,

Ele

dear Chelo,
I found 50,2 maybe bigger, how about 40,2 will be same?
I wondering some trendy market is risky for the system. So would you tell me how to avoid such risk?

regards,
Ele

Ele

Thanks for taking interest on this strategy. I have been testing it for about two months now, and the first one was a complete disaster, until i got to sort of "know" how the pair behaves in such a small time frame, it takes lots of hours of observation. how do i avoid the risk of a trendy market?, by scalping the trend, if you check the detailed statement that I posted you will notice 80% are short positions, that cause i was scalping the down trend. When in a trend the price usually bounces off the middle line of the Bollinger bands on the direction of the trend.

About average profits: there are none, average profits will be given by your money and risk management, profit objectives etc. I think that anyone able to make a consistent 20% a month should be more than happy.

Some other tips:
I find mondays to be a very complicated day to trade this strategy

always check res and support levels on larger time frames...and obey them

One of the biggest risks of scalping strategies is over-trading. As you can see on the statement I pulled 102% in a week, but that was just pushing it, and testing the strategy, it should be by no means your weekly objective, because if that is the case you are sure to blow your account in no time.

Test it, test it again, test it some more, and still it will be never be fool-proof

I am going to test how the 40,2 setting works and i tell you my results

Best of lucks and thanks for the suggestion.
Chelo

Hello everyone,
Here is my observation.
I found no indicators yet to suggest, but I tested various Bollinger Bands settings and looked at Ele's suggestion and got next:

Setup: GBP/JPY 1 min
BB (200, 2, -2)
BB (200, 3, -3)
Remove middle line on Bollinger Bands or make it black/invisible. Instead of this line we will use EMA 100. (I also tried EMA 200 for this purpose, but finally stopped at EMA 100)

Entry and exits rules are without changes. Use 100 EMA for exits or go for 5-10 pips per trade. Looks to be quite accurate.

I'm going to leave this setup on my background charts and if I find additional interesting approaches or some indicators to add I will gladly provide my comments.

Best regards,
Edward.

dear gentlemen,
i try this strategy but i faced a big problem some times the candle when it breaks the bollinger band the lower line for example and i put buy order after that the price forthe next candles don't go up it contineu to go down the candle don't close out side the line and made ahuge number of pips.
how can we avoid this suituation.
or is there filter tofilter is false signal?
waiting for your reply
best regards,