Scalping envelope strategy: short-term scalping inside the envelope

Scalping envelope strategy - A simple and effective short-term strategy for scalping on any currency pairs, using standard indicators MetaTrader 4 terminal.

Trading strategy settings

• Currency pairs: any.
• Timeframe: M5.
• Bidding time: any.
• Risk Management: After calculating the stop-loss, choose such a volume of the lot that the risk was no more than 2-5% of the deposit per trade.

Setting indicators and system template

• Copy the template into the templates folder.
• Restart the terminal.
• Open the chart of the desired currency pair.
• Install a template named Scalping_envelope.

The schedule should look like this:

Signals indicating the opening of a long position (buying)

• Blue Line stochastics crossed the red dotted line from bottom to top.
• A downward fractal has been formed (confirmation is not necessary, just enough for the down arrow to appear).
• The price crossed the brown moving average from the bottom up (sma with a period of 5).
• Stop-loss is placed just below the bottom of the fractal.

Signals indicating the opening of a short position (sale)

• The blue stochastics line crossed the red dotted line from top to bottom.
• Formed fractal up (confirmation is not necessary, just enough for the up arrow to appear).
• The price crossed the brown moving average from top to bottom.
• Stop-loss is placed just above the top of the fractal.

Exit methodology

• You can exit the transaction as follows:
• When you reach 2-5 pips profit.
• When the price reaches the green moving average (sma with a period of 20).
• When reaching the upper / lower limit of the envelope (depending on the trading direction).

To improve the quality of trading, the experts of ForTrader.org recommend using the following filters:

• Take into account the stochastic crossing only in zones oversold (on purchase) and overbought (on sale).
• Trade in the direction of the trend of the older timeframe.

Download Scalping envelope strategy template and indicators

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