16# XXL Scalping
Scalping Trading System
Submit by Joy22 15/04/2011
"1.Use the system on any pair you like.
2. Timeframe for main screen is M1and M5. TP is 12 pips, SL is 45 pips. I've set slower moving pairs to TP 7 also, depends on your expectations.
The higher the timeframe, the more profit you may want to take.
The best thing would be to exit at the counter semafor ... but I do not dare :) You could set quiktrailing to break even at your liked pips or to lock in some profit, if you shoot for more...
3. Eventually use a second backup screen for higher semafor check on M15/M30, but get your feeling.
TRO says trading only if at least H1 shows ANY semafore (1,2,3) in your direction, but I work without that. It would of course give even more safety.
4. To start scalping, wait for the messagebox to tell you that a level 3 semafor has been detected, that is the yellow one with a red circle around it.
6. Check Semafor 3 again and make sure, it is in very close range to the thick double
lines blue and green. If it is in them or even past, get ready.
7. Check the RSI black and yellow line in the middle indicator on screen.
If it is over 80 and semafor has touched or pierced blue double (bending) outer line,GO SHORT ! Do not think :)
If it is under 20 and semafor has touched or pierced green double (bending) outer lines,GO LONG !
8. Be aware that semafor is a repainting indicator and thus will appear more than on one candle after another, always marking highest of a trend.
I have a special way catching trades ... but BEWARE OF HIGH RISK HERE, check money management !!!
For this I work with SL 100 or higher in the quik trailing settings (thanks Quiksilver!)
If a trade goes against my entry, I will re-enter with some martingale element.
Meaning I check the daily average movement of a pair, take 50% and divide this by 3.
Example : GPYJPY goes against my first entry with 0.1 lots, I calculate :
Around 300 pips average /2 = 150, 150 / 3 = 50.
Thus I reenter with double lot size 0.2 at -50 pips of the first trade.
NOT EVER BEFORE THAT !! 30 pips movement for that pair is nothing ...
Until now (4 weeks) I have never used more than 3 levels of this strategy (0.1 0.2 0.4)
But check out whether you like that kind of catching trades .
9. For further confirmation of trends check the currency heat indicator at bottom.
I do never trade against the H1/H4 trend ! The trend indicator middle right (I was reffering before to it) is setup to mix H1 and H4 trend already, so mostly no need in reconfirming that.
10.There are also the colour bars top right on screen telling you also what SHALL happen.
I use this system on more than 10 pairs at once with a bankroll of around 5k EUR.
Happy scalping !
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1 min Scalping Forex Strategies