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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What is the right stop loss for this strategy (i mean how many pips)?

This strategy is powerful on a 5 minute chart... Thanx!!!

I'm glad I've found this strategy. I haven't used it yet but I see the light... Very promising.

Hi and thx 4 sharing your system.
"You said if the signal went the wrong way, you will double your bet!
Please elaborate how you do that."

Yeah interesting question, wanna know that too.


It's a martingale concept.

If you get it wrong by entering too soon and get stopped out, you re-enter the trade but with double the lots (or bet). This is the hope that you got it right the second time and win back your losses and make some profit.

There is obviously a limit to this - if you get it wrong too many times in a row the account is emptied before you get the one win that you need.

Hi Hessel,

You said if the signal went the wrong way, you will double your bet!.

Please elaborate how you do that.

Sound very risky to me.


I finished developing a signaling system that implements the system above. it just send you an email once you have a buy or sell signal on the EUR/USD ( or any other currency you will want)

If you are interested in receiving alert to your email once the signal happens let me know.
I can give the alert service for 2 months for free

my email bhuuvana3 at gmail com

Alex - let me know what you want the alert to do:
..Play a sound, or generate a pop up alert box
..Any time delay between alerts (to stop alerts being generated every tick - annoying when the market is moving quickly)

Trigger points for:
..Bollinger Bands (and the settings used)
..RSI (and settings used)
..Stochastic (and settings used)

My email if anyone needs bhuuvana3 at gmail

Hello All,

I have built an EA that implement something semi-liar to this strategy

It works find since 2002 ( I checked it for 2002 - 2010 ) , sometimes you have big drops so be careful and use stop loss

If enough people will want, I can offer a signaling services for this method for 50$ a month
You will get an email once its time to get in

Hi Hessel, Is there any way you can combine this into an indicator. I think this system is really good, but it can become really boring having to check the chart all the time. I don't mean an EA, just something that would advise you when it was time to do a trade (manually).
Thanks for your help, I have found all your systems very interesting and promising!

Hi Hessel. What if the price go one direction with the trend for a 100-130 pips and never come close to 50 ma. Without stop loss you are going to add and add and add to your position untill you loose all your money. One day it is going to happen. After big work for a month or two you can loose all your account in ONE day.

Dave -

One more comment as I didn't answer your question fully. As far as a $1,000 account and playing 4 pairs --- it doesn't matter how much is in the account or how many pairs you are trading. What DOES matter is money management. As long as the system has positive expectancy and you don't risk more than 2%-3% per trade you won't blow up your account. The biggest problem with a "double down" is that it blows your money management (read that "risk management") all out of whack. That is when your account will be at risk.

Sorry I didn't cover that in my first reply.


Dave -

It isn't worth it. Don't chase the bad ones. Stop them early. One of the biggest risks to scalping is market risk. If you are "in the market" the risk of a move against you gets greater with every minute you are in the trade. If the entry turns out to be wrong, get out, cut your losses and wait for the next one. If your expectancy is positive you will be much better off taking your lumps when they come rather than increasing your risk as it moves against you. One bad one could send your expectancy down the drain.


I am using this strategy with great success! It's nice to see nothing but winners in the activity columns. However, I have one concern. I have had a situation where I had to "double down" 3 times to finally get the result I wanted. Therefore, I am playing micro-dollars on my account as I try to figure out what a safe level would be. This can become a Martingale system very easily if you let it. Has anyone determined what would be a "safe" amount to initiate a trade with? Let's just say you have a $1,000.00 account and you are playing 4 pairs. At what level does the probablilty on losing your entire account become virtually zero?

We gotta get this right cause I'm lovin this system.



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