Scalping system #7 (Great GBP/JPY 1M scalping strategy)

You quys are good keep up the good work because you don't know how much this help others!
Thank you
i will keep you posted on how things go

Hi guys!

One more thing I have observed is that this strategy is at its bet when used in less volatile market times. For ex. 1 hours after London open or 1 hour after us open. Trading right at the open and close of markets is bringing in a lot of volatility. Yes, I know we want volatility to scalp but considering the fact that gy is an extremely volatile pair, adding more would be just complicating the issue.

Hi guys!!

I observed that the signal is different on a MT4 platform compared to some other platforms. I found that when we go half way to the orange band on a MT4 platform it isn't there yet on the Oanda platform. Check this out for yourself. And the signals given on a meta platform seem to be a lot better than what we get on some other platforms.

Hi Keith,

Yes, it would most of the time behave differently in real time. Each time the price would touch and retrace from BB you would think that the bands are going to narrow, you would also actually see them narrowing for some time, and then, with another wave in the direction of a previous trend, bands would straighten back away, thus leaving you with a false signal.

Using BB as a warning tool would require additional tools to confirm such warning. All in all we would start making a system complex.

Keith, by this comment I don't want to discourage you from studying the charts by looking back at past performance. The way you are trying to understand the price and indicators behaviour is, in fact, right. I have done so in the past and continue doing nowadays looking for new ways to benefit from the market. So, do continue your research. Once a pattern like the one you've mentioned above is spotted go on and test it forward in real time on your demo account.

Kind regards,
Edward.

One observation I would like to mention regarding the behavior of price with B.Bands. I have noticed that quite frequently, when the bands start to widen as volatility enters the market, a clue to a sustained change in price direction (not just a retrace then further trend move) is 'predicted' by the B.Band that is on the opposite side of price. Often it starts to "close" before the price-side band does, and that seems to predict a change in direction. After viewing the screen shot included, back and forward test this dynamic and let me know if you find the same "warning" signal.

Thanks,

Keith

hi all
i review the system for EUR/NZD it is a fact pair but the problem is the spread it is 10 pips but it cover it quickly.

Hanz

Chelo, I'm testing your TS, I never like so much scalping trading but your system seems great, I'm using your system on Eur/Jpy like our friend say above. Good work Chelo.

Best Regrats,
Allen

I dont think bb squeeze has any use in this strategy. what would you be using it for? And this type of trades are not the kind you would like to sit around waiting for them to turn in your favour once they've gone wrong (or in any scalping strategy for that matter).

In my view time is actually more important than strategy, if the trade is not going your way in a x amount of time: get out.

Chelo

A comment above mentioned the need for an indicator (or stop) to save the trade from disaster when there is a sustained and quick move along the bbands with the candles staying inside the two bbands (red and orange bands). For example, when you buy and the price keeps dropping along the bband. I have noticed that when the Bands are tight and squeezing, this startegy does not perform well. Has anyone else noticed this?

If you guys think this is valid, I'll attempt to see if there is a correlation with my BB-Squeeze indicator.

Another Brian
blog.tipster.ca (Autotrading Forex)

Very good point, Chelo.
Thank you.

Regards,
Edward

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

Hello Chelo,

Any update for this system? Thanks for your continued contribution and support.

Best Regards!

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

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)

bravo! keep up the good work!