Scalping Strategy New Science of Forex Trading

Good day, dear readers of ForTrader.org traders magazine. Today we will consider a fresh scalping strategy called New Science of Forex Trading. This strategy is very popular in the English-speaking segment and is discussed on many popular blogs and forums. The strategy is actively marketed on clickbait, but that didn't stop one of the buyers from putting the system on his website. This is how everything that is paid quickly becomes free.

Input parameters

• Currency pairs: any
• Timeframe: any, M5 is recommended
• Trading time:
• Type of strategy: Indicator, scalping

Installing the New Science of Forex Trading Strategy

The New Science of Forex Trading scalping strategy is installed in a standard way. If you have done everything correctly, the desktop of your terminal should look something like this:

Used indicators

New Science of Forex Trading strategy consists of five indicators: four of them influence the decision, one informer.

• Moving Average - standard trend indicator of the MetaTrader 4 platform. This system uses the intersection of two slips with a period of 6, only one slip has a shift by 1, the other does not. These parameters have been selected for scalping on M5, so you can optimize these parameters for yourself.
• DED - the indicator is displayed as dots of blue and yellow color below and above the price. The indicator is author's, but I can tell at once by eye that it is no more than a modification of of the standard Parabolic indicator .
• TES - the indicator is in the first additional window in the form of a histogram of blue and orange. The author of the strategy closed the settings of the indicator, so I can't tell you what it is based on. It acts as a filter in the system: blue bars - buy, orange - sell.
• TTL - the indicator is in the second additional window, displayed as a red and green histogram. The indicator acts as a filter and is created on the basis of oscillatorThe most likely Stochastic, where you can set the period and change the overbought and oversold zones (in our case 30 and 70). The trader can optimize these parameters for himself.

There is also an informer, but its meaning is visually clear, so we do not focus on it.

Scalping Strategy Signals New Science of Forex Trading

The strategy provides for comparing the trend with the older timeframeIn other words, if we work on M5, then the confirmation of the signal we look at M15. We work according to this scheme:

• M1 - M5
• M5 - M15
• M15 - M30
• M30 - H1
• H1 - H4
• H4 - D1
• D1 - W1
• W1 - MN

Signals to open a buy position

To enter to buy there must be simultaneous compliance with a number of the following conditions:

• The Moving Average indicator with a period of 6 in blue crosses the Moving Average indicator line in yellow from bottom to top.
• The DED point should be blue.
• The bar graph of the TES indicator should be blue.
• The bar graph of the TTL indicator is colored blue.

If all conditions are the same, go to M15 (if we trade on M5) and look at the histograms of the TES and TTL indicators, their bars should be colored blue.

Next, to confirm the signal, we go to M15, and if the signal is confirmed, we buy.

Signals to open a sell position

To enter the sale, a number of the following conditions must be met at the same time:

• The Moving Average indicator with a period of 6 in blue crosses the Moving Average indicator line in yellow from top to bottom.
• The DED point should be yellow.
• The bar graph of the TES indicator should be orange.
• The bar graph of the TTL indicator is colored red.

If all conditions match, go to M15 (if we trade on M5) and look at the histograms of indicators TES and TTL, their bars should be colored orange and red.

Then, to confirm the signal, we move to M15, and if the signal is confirmed, we enter to sell.

Setting a Stop Loss

Stop Loss set in a classical way, namely - on the local minimums and maximums, important support and resistance levels.

Moving out of position

Analyzing the video reports of the author of the strategy, I saw that the exit from the position takes place according to the set Take Profitwhich is equal to the stop order. But after reviewing the New Science of Forex Trading strategy on the history, I dare to suggest that in this way the author exits prematurely, and you can use an alternative exit, for example, by the opposite signal.

Money Management

Compliance money management - It's like a foundation for a house: the better you make it, the longer it will last. So in trading, money management is responsible for stable growth of your deposit. The author positions the New Science of Forex Trading strategy as a scalping strategy, so I strongly recommend not exceeding the risk of 1% per position.

Opinion of the author of the article

As for me, the New Science of Forex Trading strategy has the right to exist, but still, I would not recommend buying it by any means. In fact, we have two moving averages and two oscillators, which are probably based on standard indicators. So there is no special stuffing, which means there is nothing to pay for. The strategy has a filter on higher timeframes, it helps not to miss and enter against the trend (I'm not talking about the global trend, but the micro-trend that is present at the moment, sometimes it's just a pullback). The parameters of the indicators are well chosen and all indicators look on the chart organically. In general, I recommend to test the strategy, it deserves attention.

Download New Science of Forex Trading Strategy Template and Indicators

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