Greetings to the readers of ForTrader.org. Today we are going to look at another popular strategy Max Snake. The author of the Max Snake strategy claims that he actively uses it in scalping on the M5 timeframe. The author also claims that the system can be used on higher timeframes. Recommended currency pairs: EUR/USD, EUR/AUD, USD/CHF, GBP/USD, USD/JPY, GOLD. You can trade around the clock.
Input parameters of the Max Snake Forex strategy
- Currency pairsAny, recommend EUR/USD, EUR/AUD, USD/CHF, GBP/USD, USD/JPY, GOLD
- Timeframe: M5 and older
- Bidding time: 24/7
- Type of strategy: indicator, scalping
Setting up a scalping strategy
Install the trading system as usual. If you have done everything correctly, the desktop of your terminal should look something like this:
- Max Snake strategy is based on four indicators:
- NonLagMA - this indicator moves with the price and is displayed with a red line (bearish trend) or a green line (bullish trend). the NonLagMA indicator is a modification of the usual moving average with the ability to display changes in the trend. The Length parameter is the period of our slider.
- Thesecret alert - this indicator is displayed in the form of red and green arrows. This indicator is based on the intersection of two moving averages, so in the settings you can change the most different parameters depending on your preferences.
- MACD - standard indicator in your terminal, slightly changed graphically, but the parameters remain the same.
- Awesome Osicilator - the indicator is displayed as a green and red histogram. The parameters are closed, the only thing you can do is change the color of the histogram.
The conditions for opening a buy position by Max Snake strategy
- The NonLagMA indicator is green.
- Thesecret alert indicator formed a green up arrow.
- The green MACD line must be above the red line or cross the red line from bottom to top.
- The Awesome Osicilator indicator forms a green bar.
If all the conditions match, you must go to timeframe older and look at the direction of the trend. For example, you trade on M5 and you got a buy signal. You should switch to M15 timeframe and look at the direction of the trend. The NonLagMA or Awesome Osicilator indicator will be good for this, they should be green.
Then we go to M15 and check the direction of the trend.
Conditions for opening a sell position by Max Snake strategy
- The NonLagMA indicator is red.
- Thesecret alert indicator formed a red down arrow.
- The green MACD line must be below the red line or cross the red line from top to bottom.
- The Awesome Osicilator indicator forms a red bar.
If all the conditions are the same, you should move to a higher timeframe and look at the direction of the trend.
Then we go to M15 and compare the direction of the trend.
Setting stop orders. Exiting a position
Stop orders are placed at local lows and highs, as well as near important levels. For traders who have difficulty finding local lows and highs, ForTrader.org magazine recommends placing a stop by fractals or levels. You can find these indicators-assistants on our website in the section trading indicators. Exit when the stop-order or profit is reached, and you can also exit when the opposite signal appears on the NonLagMA indicator.
Trade strategy money management
The basis of success in trading is compliance with the rules of money management. Since Max Snake is a scalping strategy, the percentage of risk per position should range from 0.5% to 1%. If you are unfamiliar with money management and do not know, How to calculate the lot correctly - Look for information on our website, thank God we have tons of articles on the subject.
Personally, I'm not a fan of scalping, but if you look at the purely technical side, for me, all the parameters and conditions are quite clear. Multicurrency trading system is also nice. When working with the Max Snake strategy, you should clearly understand that you work on noise and be prepared for a number of losing trades. Good luck to everyone, and lots of green)