Scalping system #4 (5 pips with GBP/USD)
Submitted by Edward Revy on May 20, 2007 - 07:42.
This simplified trading system derived from the previous “2 SARs to go” system and is a work of our dedicated scalper – Alex Wakemann. Thank you, Alex! His scalping insights will be published and updated on our pages as we move on. With this Forex scalping system Alex claims to always get at least 5 pips per trade.
Trading setup
Trading pair: GBP/USD
Time frame: 5 minute chart
Indicators:
MACD (5, 8, 9)
SAR on MACD (0.1, 0.11)
SAR on the chart (0.1, 0.11)
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Hi Keith,
I was trying to get the same results while running this custom indicator on MT4 trading platform and was unable to make SAR look flat, or wait for it to collapse. It worked fine all the time.
As I see it from your screen shots with collapsed SAR there must be some malfunctioning in the way the SAR is performing. It should never lie flat at the bottom of the trading window.
The solution here would be to ignore collapsed SAR and reload it. Also you may try running it with other broker. See if you get the same results. Hope this helps,
Regards,
Edward
Hi Edward,
what Chart Software do you use?
It is FxTrade from Oanda broker.
Regards,
Edward
Is it just me or does this method incur a lot of risk for 5 pips? I have been looking at this pair and the SL is a much as 25 pips...
In case a trade appears to be not worth risking for any reason, or a stop is too distant, pass on a trade.
:)
Do you enter this trade every time SAR reverses??? If so, on average how many times a day do you take this trade?
Yes, we take trades each time both Chart and MACD SAR reverse.
Every trading day would be different, 5-8 trades on average are taken.
Alex
I've just been playing with this using spread bets.
Because I don't have the facility to put an SAR on the MACD, I used a 3 period end point ma on it instead, displaying it with dots and colors for the direction.
When the colors matched with the SAR (so an SAR above price, short, would be colored red and a falling macd ma would be red also) I entered the trade.
Also I've only traded short this afternoon as that seems to be the general trend.
All trades were successful except one where I made a mistake with the one minute chart.
At least you don't get bored and don't have to stay at the screen all day.
I like it!
Thanks for letting us see it.
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