75# 1 min Scalping GBP/USD Trading System
1 min GBP/USD Scalping with EMA and MACD
Submit by JanusTrader
Currency pair: GBP/USD
- the hours (roughly) between 06:00GMT and 08:00GMT – these are not strict times; you can use a little flexibility here if you see something you like to trade. : )
Time Frame 1-Minute chart.
We trade in either direction - buy or sell; it’s all the same to us.
So that means that whatever we look for as our setup to take a long (that means buy by the way in “trader speak) is the same thing we look for taking a short (that means sell) – except it’s in the opposite direction.
If you don’t quite get it then you’ll see what I’m talking soon enough…
First example is a short trade:
(so far so good!)
The setup will look something similar to this:
Now, believe it or not, we’re nearly there… actually, just believe it.
Once we have the above in place (remember, this is for a short setup) we then look for theyellow MACD line to go above ‘0.0’ and then come back down below the ‘0.0’ level.
Would you believe it, we get the yellow MACD line doing exactly what we want in the above example (coincidence? I think not… cunning and strategic planning on my part!).
So we get our setup as follows:
This is our CALL TO ACTION!
When the bar closes that causes the yellow MACD to close below 0.0 then we enter our short position on the close of that bar (or the open of the next bar – it’s the same thing).
So our entry (and I’ve also pointed out our STOPLOSS too) would be like this:
Like it says on the chart, the yellow MACD only just closed below the ‘0.00’ line. In this case, if you were not sure, then you could certainly have entered on the NEXT bar (and you would only be a couple of pips worse off).
We can see that the market took-off (how convenient, I chose a winning trade for the first example… I just wanted to keep YOU motivated – how nice am I…?!).
Next up comes the exit of the trade. Dear Lord the exit!
The exit of a trade is good when you do good; and bad when you do bad.
I’m going to give it to you straight here: there is a lot of randomness in exits (whether YOU like it or not, skipper!) and so the only thing you can do is just be consistent.
However there are a couple of exit strategies I would like to recommend.
This exit strategy will get you riding some big moves. However, it can also take you out right before a big move happens. You’re not going to always hit it every time, if you get kicked-out before the big move, move on – that’s trading! (harsh but true)
So what is this magical and mystical trailing stoploss that I speak of?
Well, for a 1-bar trailing stoploss (which I’ll now call a ‘1-bar TS’) you simply move your stoploss up (or down) as each new bar is formed. Your stoploss goes underneath (or above) the previous bar to the current one.
Let’s see an example:
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1 min Scalping