Crazy Nippel System strategy: big earnings on aggressive scalping
Trading Strategy Crazy Nippel System allows you to determine the direction to trade on higher timeframes, and then, having determined the direction, to open orders on the lower chart scales.
Analysis of daily charts
We draw horizontal levels, RSI (with period 7), SMA with periods 50, 100, 150 and 21; as well as 2 pairs of Bollinger Bands 200 with deviation 2 and 3. We identify strong levels, look for Price Action figures, pay attention to RSI and divergence. We read the OVERALL picture, determine where the price is likely to move in the short term.
The ideology of this strategy, concerning the analysis of levels - levels trade on a rebound. If there was a breakout, we believe that it was false, or at least there will be a retest of the level (price return to it).
H4 Analysis
We mark the levels on the H4 (not forgetting the levels from the daily charts), look at the nearest levels on the D1, analyze the RSI and divergence.
M15 analysis
We change the RSI period to 9, add a Zig Zag to the chart for a better identification of the trend and the minimums / maximums. We look for double bottoms / tops, triangles, etc. on the chart. Try to answer the question: "What is happening on the chart?
M5 Analysis
What happens on M5? We determine in which direction we are going to open a position, we look for the local extremum and try to jump on it - buy on oversold and sell on overbought.
M1 analysis (optional)
It is possible to enter both on M5 and M1. We enter by RSI, the target - the nearest strong level (most often - the cluster of moving averages). Stop-loss and take-profit are absent, we close trades manually when targets are reached.
If by senior timeframes (H4 and D1), it is not clear what is happening - do not trade.
Order management
Another important part of this strategy is working with a grid of orders. It's pretty simple: if after opening an order, the price reached our target, close, wait for the next trade.
If the price continues to move against us, we open new orders after a drawdown for every 10-50 pips as soon as the price movement slows down again. The number of pips depends on the current volatility and the volatility of the pair in general. For example, it will be 30-50 pips for gold and 10-30 pips for EURUSD. The second and third orders are opened with a starting lot, 4-5 orders can be increased by 2 times. We should not keep more than 5 orders in the market.
If you set a large number of steps in the grid, it is best to exit in some profit, without waiting for the movement to the calculated profit zone - if the price does not behave as planned, then the analysis was not quite correct and unnecessary risks are not worth taking. The bird in the hand is better than the goose in the sky.
Money Management
Since the strategy uses a grid of orders, and even with increasing lots, money management plays a critical role in this system. For those who understand the importance of position size, here are the following recommendations: 0.01 lot for every 200-300 units of currency.
It is also worth determining for yourself total stop loss on a basket of orders. I.e. the moment when you will close all orders if the total loss on them will reach N %. Everyone sets this level for himself, the optimum variant is 30-35%. Closing by such a total stop loss occurs very rarely and is compensated by the high profitability of the system as a whole.
Experts ForTrader The Crazy Nippel System strategy has high profitability, but it is not easy to trade on it. Without money management you will lose your deposit with a probability of 100%.