The Scalper Hourly trading strategy is designed for scalping, despite the fact that it operates on hourly charts.
- Currency pairs: Any
- Timeframe: Н1
- Trading time: 24/7
- Type of strategy: scalping, indicator
Used indicators and rules of entry according to them
1. smHull Mavg indicator: is kind of like what a lot of people are used to muvinga (moving average) with the function of changing color when the market mood (trend) changes. The indicator can also be used to exit a previously opened position at moments when it changes color to the opposite of the current trend. For predicting the exchange rate is used as follows: selling - smHull Mavg color is yellow, as well as its line crossed parallel muwings with a period of 21 (red and blue) from top to bottom; buying - smHull Mavg color is blue and its line crossed muwings from bottom to top (it is above the sliding).
2. BBands Stop indicator: is located on the price chart and is represented as a set of points that indicate the nearest resistance and support levels. For buy signals it is necessary that the color of the indicator was blue and it was located under the price, for sell signals it is necessary that the color of the points was red and they were above the price. By the same points you can move the stop order into profit with each closing of a new candle.
3. ArenDI ATR Exclusive Indicator: Do not confuse it with the Better Volume tool. It indicates, first of all, the strength of the market, which actually makes it possible to analyze the seriousness of the currency pair's mood to rise or fall. It is important to remember that the signal is valid only when the indicator histograms are above the signal blue line. These moments confirm the truth of the signal formed by the strategy.
4. Scalper Osc D1 indicator: Here everything is very simple - for purchases the histogram should be colored green (it is important: not light green, but bright green); for sales - the histogram is colored bright red.
The tactic uses five indicators in predicting changes in the exchange rate. Part of them studies the prevailing trend on the currency exchange, the other analyzes the current situation for a more accurate entry with a smaller stop order. It is desirable not to forget to set take profit 2-3 times larger stop lossso as not to violate the mathematical expectation of winning.
As mentioned above, take profit on each order should be at least two stop orders. Otherwise, the strategy may start making losses. Therefore, if you do not use fixed targets, be sure to make sure that most of the profitable orders are closed in a profit greater than 2-3 stop loss. The latter are placed as it is often accepted, on local minima or maxima and are usually no more than 25 pips for 4 digits. Take profit or target on a deal can be fixed or dynamicif it is not difficult for you to "peek" once an hour at price changes. Dynamic TP is the so-called manual closing of the market order, which is performed by the trader when the smHull Mavg indicator changes color.
According to ForTrader.org experts, the best way to control the position within this tactic, will be the familiar many trailing stop on the BBand Stop indicator (i.e. SL movement following the indicator points under each bar). Risk management per trading position should not exceed 2%.