Scalping system #14 (EURUSD scalping with Bollinger Bands)

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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I would actually wait for a reversal before entering the trade, placing the stoploss just above the previous candle. There, you can get a few pips much more safely. You can even close 50% or 75% your position with a few pips and leave the other 25% of the lots with a trailing stop to see where it goes.

Hi everyone... I already try to develop an ea from this idea... I already made 8 prototype for this idea and at last i made it. Thank you for you're great idea. If anyone interested to buy the ea you can email me at [email protected]. I will send you full statement for 2011 first then we can discuss the price. Such a great idea and i can profit almost 4000+ pips per month.... have a nice day guys...

I use SL 10 pips and TP 5-10 pips, so far so good. Today made easy 35 pips, thx for great scalping method, I also use daily/weekly/monthly S/R.
This is how I enter the trades, exit at red line.


what to do if trades go very wrong??

Simple and straightforward...
On EURUSD u can dare for more than 4-5 pips if all the conditions are met.

Need a part on the signs that the trade won't go your way. The only thing i can think of so far is that the wrong BB 2 hits the 5-pip TP. But that could be a pretty big loss.

I have been doing a similar system on 30 sec chart, I am using tighter bands, seems like when i backtested larger band setting, it didnt help a lot. I basically just use the bands to confirm candlestick set ups.

Incredible system
Keep up the good work dude

Hi Edward thanks for a good work.I'm new in forex,How to setup a pivot and fibonacy and which strategy can I USE to trade using these analysis.


The easiest way to scalp is to enter with momentum and positive expectation. What I mean is that if your trade is not in profit straight away close it Now. Place hard stops of 4-5 pips just in case, but don't let them get hit. If trade goes against you get the flip out. This way you can scalp many times before you call it a day. WIth this I make on average 40 pips a day, average number of trades 200. more on my blog at tradeconscios(dot)com.


This seems like a great strategy if there was a better way of determining entry points. I have been testing for a couple of days on the Eur/Usd usim 1M charts. RSI set at 75/25 and also Full Stochs at 80/20. I set at SL at 5pips and take profit at 3-5 pips. Achieving 60% success rate so far. The strategy only falls when there is a strong trend in place. then it is very hard to judge entry points and the stop ofgten gets taken out. However with a bit of practice I can see this system working and will persevere.

Thank you for the feedback!

The scalping system has been published here for discussions:

The Spearman's Rank Correlation indicator can be downloaded here:

Spearman Rank indicator

Best regards,

Here is a simple scalping strategy on the one minute chart. Bollinger Bands using 21 & 2, SMA. The second indicator is RSI at the default settings. When the price penetrates the upper band and the RSI is above 70 consider entering short and exit at the center line or 3-5 pips. When the price penetrates the lower band and the RSI is below 30 consider entering long. This stategy is effective in a ranging market. If there is a trend, wait for the price to penetrate the center line indicating the trend is over before entering long or short. For confirmation, you can add Stochastics at the default settings.

This system is very similar to a system Mrs. Mayumi introduced in her book which was a best-seller in Japan. ( However, there are some differences. She adopted 20 day period of bollinger bands instead of 50. She also introduced RCI (Rank Correlation Index) which I believe effectively filters out unprofitable trades. (MT4 custom indicators for RCI are available. Most popular one is 'Spearman'.) She insists she's making 100% (doubling) profit every month.

Hi Phil,

Let me quote the author:
"I don't use stop losses with this system, because (especially on 5M time frame) entries are nearly almost a success. When prices go the wrong way, I just double my bet!"

Trends: "ONLY sell when RSI is above 70 and the Full Stochastics (almost) hit the 80 line. Opposite story for a long entry!"

From myself, I'll say that time (GMT or not) doesn't matter.


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