В 70th issue of ForTrader.org We will consider a simple scalping strategy for the currency market, based on a combination of standard indicators from our familiar MetaTrader 4 terminal. This scalping trading strategy works on the lowest timeframes of currency pairs EUR/USD, AUD/USD, GBP/USD.

Trading Strategy Parameters:

Currency pairs: EUR/USD, AUD/USD, GBP/USD;
TimeframesM1 and M5;
Indicators:

—  SMA (50)  для M1;
—  SMA (21) для M5;
—  CCI (45), 100 и -100;
—  Parabolic SAR (0.02, 0.2).

All indicators are applied to the chart in a standard way. As a result, your working chart should look as follows:

Rules of work on the trading strategy

A bargain for sale is accomplished when the following rules are met:

1. The Parabolic SAR indicator is below the SMA (50) and the CCI value (45) is below -100 for the minute chart.
2. The Parabolic SAR indicator is below the SMA (21) and the CCI value (45) is below -100 for the 5-minute chart.

Buying deal is accomplished when the following rules are met:

1. Indicator Parabolic SAR above the SMA (50) and the CCI value (45) is greater than 100 for the minute chart.
2. The Parabolic SAR indicator is above the SMA (21) and the CCI value (45) is greater than 100 for the 5-minute chart.

As a stop loss level is a moving average, the crossing of which by the price means the necessity to close the position.

Take Profit для пары EUR/USD составляет 7-12 пунктов, для AUD/USD — 5-8 пунктов, GBP/USD — 7-15 пунктов прибыли.

The strategy involves the use of Trailing Stop.

Scalping strategy trading expert

Our programmers have implemented an Expert Advisor based on the above rules. Note that the author's settings, as is often the case, did not give a positive result (see Fig. 4). Testing was conducted on the M5 chart for the EURUSD currency pair.

While performing the optimization, good results were still obtained, with the EA settings being as follows:

— sma_period = 275 – период скользящей средней;
— cci_period = 45 – период CCI;
— cci_level = 10 – уровни индикатора CCI, для покупки значение будет с противоположным знаком (-10);
— parabolic_step = 0.02 – значение индикатора parabolic;
— parabolic_max = 0.2 – значение индикатора parabolic;
— InpLots = 0.1 – значение лота;
— InpTakeProfit = 83 – значение тейк-профита;
— mn = 10 – множитель для котировок для пятого знака;
— TrailingStop = 0 – уровень трейлинг стопа;
— TrailingStep = 1 – шаг работы трейлинг стопа.

As a result, we obtained the following results:

Recall that in testing the Expert Advisors we use the check of parameters' operation at subsequent periods. You can make independent tests and, possibly, finalize the Expert Advisor by downloading it from the link below.

Read more in issue 70 of ForTrader.org
Download PCSTrader Expert Advisor