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.
- 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.