Scalping system #7 (Great GBP/JPY 1M scalping strategy)
Submitted by Chelo on November 24, 2007 - 15:39.
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)
Read entire post >>>
Do you primarily trade the 1 minute chart or do you sometimes use the 5 minute chart as your primary trading decision tool? What are the average number of candles you normally use to determine exit on the GBP/JPY 1 minute chart?
Thanks for your help
Dear All,
I still backtest this system,but wondering any improvement for BB and MA setup.
Hope any buddy could help me here
tks a lot
Ele
I am still tweaking this system, and I found a very good combination of indicators to filter bad trades:
1)the laguerre indicator.It must be used in 5M timeframe otherwise it will give too many false signals:
here is how the indicator works:
TimeWarp.doc
download indicator:
Laguerre.zip
setup for the indicator:
gamma: 0.66
ccount: 9500
levels: 0.15 - 0.45 - 0.75
Only trade when system conditions are met + laguerre indicator (IN 5M CHART) is going in the direction of your trade and past 0.15 for long and 0.75 for short.
2) I found a version of the stochastics indicator called "Stochastic DiNapoli" which gives much better signals than the common Stochastics indicator found on MT4, also set to 8,3,3 and levels at 70 - 30. (though Chalesi's recommendation works fine, this one will be a bit more reliable)
Indicator:
StochasticDiNapoli_v1.zip
Wait for Stoch to cross over 70 for shorts, and cross below 30 for long.
Summary of conditions that must be met:
1) Wait for price to bounce of bolinger bands
2) Check Laguerre in 5M timeframe (trade that direction only when cross over 0.15 for longs or below 0.75 for shorts)
3) Check StochDinapoli in 1M, cross at or below 30 for longs, cross at or above 70 for shorts
This will filter most of your bad trades.
Chelo
bravo! keep up the good work!
Hey Elo and Chelo,
I am totally thrilled by you guys and must confess it has been a great lesson. I will go and trade this system on demo, I will let you know.
But I dont know about the Laguerre indicator, you cold let me know.
Alfred Owei( Nigeria)
Hi Guys
Just wondering why you use GBP/JPY for scalping? The spread is so high that a 10 pip target profit is surely a bad risk/rewad ratio. But I'll check it out anyway.
Cheers
Simon
Hello Chelo,
Any update for this system? Thanks for your continued contribution and support.
Best Regards!
Actually there is one thing worth pointing out. I had been checking the gbp/jpy 4 Candles breakout strategy for quite some time (mentioned in Advanced Strategies) which actually works quite nice. The point is that those four hours mentioned in that strategy (from 23.00 to 02.00 GMT) are the best ones to go scalping with this strategy, because it usually ranges quite nice...
"Submitted by Edward Revy on December 9, 2007 - 15:22.
Totally agree, Ele. I also saw it being useless when the market is trending well"
Just thought it would be worth to mention it, might be a solution to Edward's point there.
Remember no strategy works at all times.
Chelo
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