213# Ehlers Scalping Strategy

The Advanced Ehlers Scalping Strategy is a mathematically precise trading system for short-term forex trading. It combines John Ehlers’ digital signal processing (DSP) indicators with Bill Williams’ Market Facilitation Index (MFI) to filter noise, identify zero-lag market trends, and confirm participation through volume analysis. The strategy is optimized for M1 and M5 charts, targeting 8–30 pip scalps during high-liquidity sessions.

Required Indicators

FRAMA (Fractal Adaptive Moving Average) – Identifies trend efficiency
- Period: 14
  
  FastSC: 4
  
  SlowSC: 200
Instantaneous Trendline – Zero-lag trend detection using Hilbert Transform
- Alpha: 0.07
Cyber Cycle – Detects dominant market cycles
- Alpha: 0.07
MESA MAMA/FAMA – Adaptive moving averages via spectral analysis
- FastLimit: 0.5
  
  SlowLimit: 0.05
Market Facilitation Index (MFI) – Volume-price confirmation
- Focus on GREEN bars (trend with volume)

Entry Rules

Long Setup (ALL conditions required)

Price closes above FRAMA, which slopes upward.
Price is at least 3 pips above the Instantaneous Trendline.
Cyber Cycle above zero with rising momentum.
MAMA > FAMA (adaptive bullish trend).
MFI = GREEN bar (volume confirms move).
Current bar volume ≥ 120% of 10-period average (optional).
Trade only during London/New York overlap (13:00–16:00 UTC).

Short Setup (ALL conditions required)

Price closes below FRAMA, which slopes downward.
Price is at least 3 pips below the Instantaneous Trendline.
Cyber Cycle below zero with falling momentum.
MAMA < FAMA (adaptive bearish trend).
MFI = GREEN bar.
Current bar volume ≥ 120% of average (optional).
Trade during London/New York overlap.

Stop Loss

2–3 pips beyond FRAMA support/resistance

Or 3–5 pips beyond Instantaneous Trendline

Exit immediately if MFI turns PINK (false breakout)

Take Profit

TP1 (60% position): 1.5 × stop distance

TP2 (40% position): 2.3 × stop distance

Trail stop after TP1 using Instantaneous Trendline

Market Filters

Trade only when:
- FRAMA efficiency > 0.7
  
  Cyber Cycle aligned for ≥ 3 bars
  
  Volume above average with GREEN MFI
Avoid trading when:
- FRAMA efficiency < 0.4
  
  Cyber Cycle flat around zero
  
  PINK MFI bars (false moves)
  
  During high-impact news or session opens/closes

Multi-Timeframe Confirmation

M15: FRAMA + Instantaneous Trendline match trade direction

M5: MAMA/FAMA alignment matches M1

M1: All five conditions met before entry

Performance Expectations

Win Rate: ~70%

Average Reward/Risk: 1.5–2.3R

Drawdown: 8–12% typical

Daily Trades: 8–15 quality setups

Monthly returns vary:

Conservative (0.5% risk): 8–12%

Moderate (1% risk): 15–20%

Aggressive (1.5% risk): 25–30%

Key Discipline Rules

Wait for all confirmations before entry

Never override MFI signals

Trade only in high-volume sessions

Exit losing trades without hesitation

Avoid chasing late signals

Conclusion

The Advanced Ehlers Scalping Strategy merges DSP mathematics, fractal geometry, and chaos theory into a single scalping framework. By combining zero-lag trend detection, adaptive cycle analysis, and volume-price confirmation, it provides a statistically strong edge for disciplined traders.

Consistent application, proper risk management, and emotional discipline are critical to long-term success.