Sane FX trading strategy: scalping on currencies and gold
A very simple trading strategy that uses only one indicator showing the direction of the trend here and now.
Trading strategy settings
- Currency pairs: AUD/USD, EUR/USD, GBP/JPY, USD/JPY, USD/CHF, USD/CAD, GOLD.
- Timeframe: Anything from M1 to D1. For intraday trading the M30 timeframe (less frequently M15) is used.
- Bidding time: London and New York sessions. Sometimes it is possible to trade in the Asian session.
- Risk Management: After calculating the stop-loss, choose this volume lotto risk no more than 2-5% of the deposit per trade.
Setting the system indicators
- Unpack the archive with the indicators and the template.
- Copy the TCCI.ex4 indicator to the folder experts -> indicators.
- Copy the template into the templates folder.
- Restart the terminal.
- Open the chart of the desired currency pair.
- Install a template called SaneFX on it.
The schedule should look like this:
During intraday trading we are constantly switching between timeframes H1, M30 and M15 in order to find the most successful entry point. The default value of the indicator in the Length parameter is 30, which is optimal for H4 and D1 timeframes. For the timeframe H1 you should set the value of 20, and for smaller timeframes - 16.
The most optimal for trading daily charts for all six of the above-mentioned currency pairs.
The easiest and fastest way to learn SaneFX trading - super short-term trading on minute and five-minute charts. But even when scalping, we still look at the larger timeframe (M30) to understand where the longer term trend is headed, because trading towards the trend of the older timeframe is more profitable, which will allow us to avoid many losses.
The deal to buy opens when the following conditions are met
- The TCCI indicator has changed from red to green.
- Two consecutive ascending lettuce candles were formed.
- The output is carried out when the color of the indicator changes to red.
- Stop-loss is set no more than 10-15 pips.
A sale transaction is opened when the following conditions are met
- The TCCI indicator has changed from green to red.
- Two consecutive descending red candles were formed.
- The output is carried out when the color of the indicator changes to green.
- Stop-loss is set no more than 10-15 pips.
Scalping on EUR/USD on the five-minute chart
You can also exit a trade after the price has moved 40 pips or more and not wait for the indicator to repaint.
The same approach can be used on the M1 chart when trading gold.
Download templates and indicators
And if the signal did not form two candles in a row (red or light green), then such an entrance to skip?
Do you mean that when you change the color of the indicator, there were not two bars of the desired color at once? If so, then yes, you have to skip it. There is a high probability of getting caught in a flat and not making a profit.
I got acquainted with this strategy. It looks very simple and clear. But during training on a demo account I faced the need for a more detailed explanation of the signal to enter the trade. Namely, at the moment when the TCCI changes its color, what candle should be formed? For example, the TCCI changed its color to green, but on the border of the indicator's color zones we have a red candle and two green ones behind it. Will it be a signal to open a buy order or it can be regarded as a false signal? Such situations occur on all timeframes of the pair eur/usd. I will be very grateful for the clarification!
Our experts believe that this is a false signal, because the author in the examples shows clear signals in which there is a clear trend. Attach examples of your signals, we will consider.