166# FX Carry Range Scalping
FX Range Scalping System
The first step in the strategy is to draw a channel between the highest high and the lowest low of the last 9 bars
The second step is to draw Fibonacci Retracement lines using those two levels
We should enter a long trade when the bar closes above the 61.8% retracement level
We only trade in the direction of the carry.
Sell Stop: We should close our trades at 3 times the value of the average true range.
Profit Target: Take profits at entry price plus 3 times the average true range
We chose to use the same value both for risk and reward to avoid any statistical bias in any direction. For example, if our stop id much closer than our target, odds are that we are going to have more losing trades than winning trades
Time Frame Traded
4 hour charts
Currency Pairs Traded
In the pictures FX Carry Range trading system in action.