Scalping system #14 (EURUSD scalping with Bollinger Bands)
Submitted by User on April 15, 2010 - 16:05.
Submitted by Hessel
Currency: EUR/USD
Time Frame: 5M, 1M
Before I explain my simple scalping system, I have to thank Chelo who posted ''Scalping system #7''. I love the simplicity of the system, and it seems to work pretty well! However, I was not fully satisfied about the entry-rules and the stop loss. Prices can move up and up and up between BB 50-2 and BB 50-3.
So I thought about tuning the system up a little bit, making the entries more reliable.
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Make sure to wait for the reversal candle before entering the position. Stoploss just above last candle's high. You can do that each bar or each tick: if doing it each tick enter the position as soon as the price drops from the last candle's close.
I would actually close 75% of the position with a fixed pip profit or just after the reversal candle closes. Leave the rest with a trailing stop or just leave it to see if it reverses to the moving average.
I am including this into my own EA right now :-)
And another thing: it would be wise to check if the price action has not breakout from R1 or S1 pivot points when we are about to trade. I guess some losses -even few- done with this system are those where the price overshots the bollinger bands but also breakouts from the pivot points.
Altogether it should be a great EA. I'll code it into my stack :P
Heiken ashi candles work well when the market is trending but not so much when the market is ranging.
Hi, I'm Wee.C, just came across here and trying this strategy for past 2 days. Working just fine but I do found out i trapped during market trending. Is that any way to determine whether the coming market is trending?
regards,
Wee.C
I agree with above user. If you wait for the reversal candle color to close first it will dramatically decrease your draw downs.
In my opinion i would suggest when it's ranging with very small candles(basically they stay in the same place), i would not enter the trade even if all the conditions are met, because sometimes it skyrockets and you would lose pips. So it's better to wait.
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