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chamane Aug 18, 2009 10:21am | Post# 1

Standard Deviation Scalping Method
 
2 Attachment(s)
Hi,

I found a Scalping technique called "5-min Standard Deviation Scalp" (pattern #5 in the document enclosed). I would like to know if anybody has tried this technique.

Briefly, on a 5 min chart, you apply a 10 bar moving average and bands 1 std dev on each side. I am using Bollinger Band (10,1).

When the trend is up (slope of the bands), wait for price to dip inside the lower band and then enter long. Exit when price reaches the other band.

When the trend is down, wait for the price to touch the upper band and then enter short. Exit when price reaches the other band.

To make sure the direction of the trend is right when price touches the bands, I use 10EMA close and 10EMA open. If 10EMA close is over 10EMA open, the trend is up when price crosses the lower band. Reverse for down trend.

Sometimes price doesn't reach the other band, but crosses the middle line of the BB. The middle line can also become the exit signal. There are also false signals (fewer than good ones) and I'm not sure about the stop loss. I would think 1XATR can be a good guess since it's all based on volatility.

On the picture, I circled the entry signals. Sometimes price reaches the other band, but sometimes it doesn't, but most of the times it crosses the middle line of the BB.

Comments would be highly appreciated. If you can watch 3 or 4 low spread pairs, the result should be interesting at the end of the day.

Thanks.

Attachment 291675
Scalp Trading Methods.PDF

yaed Dec 30, 2010 6:02am | Post# 2

I dont see what that PDF has to do with the picture you posted, they seem unrelated. What settings do you use for that Bolly band?

errich fx Dec 30, 2010 9:36am | Post# 3

pattern #5

Setup: On 5-minute bar chart, impose a 10-bar moving
average. From this moving average, expand an upper
and lower band exactly 1 standard deviation from it.

Entry: In an up trend, we are looking only to buy the dip that
penetrates the LOWER band, provided the slope of the
bands are still up.
In downtrends, we look to sell the rally that penetrates
the UPPER band, provided the bands are sloping
downwards.

Profit Exit: Close out for profit on a 2-point gain or it the price
touches the other band,whichever is sooner.

Stop Loss: Take a 1.25-point stop loss or exit at market if the slope
of the bands changes after entry.


------

gann swing

.

yaed Dec 30, 2010 10:13am | Post# 4

pattern #5

Setup: On 5-minute bar chart, impose a 10-bar moving
average. From this moving average, expand an upper
and lower band exactly 1 standard deviation from it.

Entry: In an up trend, we are looking only to buy the dip that
penetrates the LOWER band, provided the slope of the
bands are still up.
In downtrends, we look to sell the rally that penetrates
the UPPER band, provided the bands are sloping
downwards.

Profit Exit: Close out for profit on a 2-point gain or it the price
touches the other band,whichever is sooner.

Stop...
Ok, so how do i get the standard deviation from the MA in the price window?

A similar thing could be to try envelopes, close, 0.1% deviations, m1, e/u
Might wantput another at 0.16% and 0.22%, take volume and S/R into account maybe.

t1minator Dec 30, 2010 11:55am | Post# 5

Coding an EA
 
Sounds codable, has anyone created an EA for this?

aelimian Dec 30, 2010 1:32pm | Post# 6

Hi,

I found a Scalping technique called "5-min Standard Deviation Scalp" (pattern #5 in the document enclosed). I would like to know if anybody has tried this technique.

Briefly, on a 5 min chart, you apply a 10 bar moving average and bands 1 std dev on each side. I am using Bollinger Band (10,1).

When the trend is up (slope of the bands), wait for price to dip inside the lower band and then enter long. Exit when price reaches the other band.

When the trend is down, wait for the price to touch the upper band and then enter short. Exit...

Please attach your template.

yaed Dec 30, 2010 4:30pm | Post# 7

2 Attachment(s)
Ok never mind i get it

Well from what i can see this doesnt occur very often since the MAs are so fast, if the trend reverses they often go flat or near flat before penetration in oppsite direction of Bands. But it seems to have something to it.

So this is how i made it

Gray MAs are just S/R

I think SL should be about 15 and TP about 10
bdm5.tpl
Click to Enlarge

Name: bdm5.jpg
Size: 171 KB

t1minator Dec 31, 2010 5:20pm | Post# 8

Scalping EA
 
1 Attachment(s)
pattern #5

Only tested with EURUSD.. I looked at USDCAD.. needs different settings.
Again, not great results on backtest, but it is a start..

Setup: On 5-minute bar chart, impose a 10-bar moving
average. From this moving average, expand an upper
and lower band exactly 1 standard deviation from it.

Entry: In an up trend, we are looking only to buy the dip that
penetrates the LOWER band, provided the slope of the
bands are still up.
In downtrends, we look to sell the rally that penetrates
the UPPER band, provided the bands are sloping
downwards.

Profit...
Ok.. I have a number of the features in an EA that can be tested. You can change the BB period and the SD value. Using such a low SL and TP value is hard to code, especially with the criminals watching LOL.

Take a look, I also used a setup as a touch of the lower (upper) band and the trigger when it crosses back over. The theory is that it has momentum when it comes back.

Also I used a sum of the slopes of the upper, middle and lower BB for the trend determination. I think that is a poor way to do it, so I will be coding a change.. likely an RSI or StochRSI.

Best!

Tim
fiveMinuteStandardScalp.mq4

chamane Dec 31, 2010 5:55pm | Post# 9

Ok.. I have a number of the features in an EA that can be tested. You can change the BB period and the SD value. Using such a low SL and TP value is hard to code, especially with the criminals watching LOL.

Take a look, I also used a setup as a touch of the lower (upper) band and the trigger when it crosses back over. The theory is that it has momentum when it comes back.

Also I used a sum of the slopes of the upper, middle and lower BB for the trend determination. I think that is a poor way to do it, so I will be coding a change.. likely an...
Thanks a lot! I'll be backtesting it for sure. You could use an EMA cross for trend determination. If you use Bollinger (10,1), then use 10EMAclose/11EMAopen crossover.

stevegee58 Dec 31, 2010 7:21pm | Post# 10

Standard deviation bands and Bollinger Bands aren't the same.

Ezzy Dec 31, 2010 7:44pm | Post# 11

Standard deviation bands and Bollinger Bands aren't the same.
Hi Steve

I have just completed a search on FF and couldn't find the SDB indi...any ideas whee it may be down loadable?

Thanks

t1minator Dec 31, 2010 7:58pm | Post# 12

Standard deviation bands and Bollinger Bands aren't the same.
emm My understanding was that the bands were xnum standard deviations apart.

What do you suggest to use instead?

I will be making some edits so to view the latest you can look here
http://metatraderscalp.svn.sourcefor...derscalp/root/

to use this there is a very nice tool to use
http://tortoisesvn.tigris.org/
just download and install. You use it from your file browser and see differences, comments, ect... very nice for coders and for users wanting a specific revision.

Cheers, and happy new year!

T

t1minator Dec 31, 2010 9:42pm | Post# 13

seeing some promise
 
3 Attachment(s)
I found the iStdev and will incorporate that into the method. These results are with
BbPeroid 10
Bbdev 1
TP 200
SL 100
SlopeMethod 1 // RSI_METHOD

DD: 2.86 on a 10k account

I'll upload this version in case anyone is interested. It will also be available in the location of the previous post with these comments attached.

T
Click to Enlarge

Name: scalp5min.gif
Size: 10 KB
Click to Enlarge

Name: scalp5minchart.gif
Size: 22 KB
fiveMinuteStandardScalp.mq4

yaed Feb 8, 2011 4:47pm | Post# 14

Scalper challenge
 
Maybe any of you would want to put things to the test and work together

http://www.forexfactory.com/showthre...13#post4382113

airquest Jul 10, 2012 5:46am | Post# 15

ATR Indicator
 
Hi,

I found a Scalping technique called "5-min Standard Deviation Scalp" (pattern #5 in the document enclosed). I would like to know if anybody has tried this technique.

Briefly, on a 5 min chart, you apply a 10 bar moving average and bands 1 std dev on each side. I am using Bollinger Band (10,1).

When the trend is up (slope of the bands), wait for price to dip inside the lower band and then enter long. Exit when price reaches the other band.

When the trend is down, wait for the price to touch the upper band and then enter short....


Hello, where did you get this ATR indicator on the picture of the first post ? Thanks

Hugh Briss Jul 10, 2012 5:54am | Post# 16

1 Attachment(s)
Hello, where did you get this ATR indicator on the picture of the first post ? Thanks
Here's one.
ATR in Pips.mq4

airquest Jul 10, 2012 6:35am | Post# 17

Thanks
 
1 Attachment(s)
Here's one.
Thanks, but I was talking about the ATR bars indicator on the bottom of the chart (separate window).
Click to Enlarge

Name: 264ovhl.gif
Size: 44 KB


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