Pivot "Scalping"
Hello there.
I am new to this forum and I am a newbiew forex trader.
This is a very very simple strategy to understand and impliment and its also almost purely mechnical.
I have to warn you though,ive been making profits with it on a demo account for the last week but this does not really mean its going to be profitable in the future - the market may change.
I trade primarily the EUR/USD.
I plot daily pivot points on the chart.
S1
R1
S2
R2
Price has a tendancy to travel quite a bit when a S or R point is broken,usually at least by 10-20 pips in the direction of the breakout (breakdown).
What I do is use an entry order 1 pip above (bellow) the S1 or R2 and go long or short on the direction of the breakout with a stop loss order 5 pips away from entry and take profit 10 pips away from entry.
Some days you will get whipsawd,but I did some eyeballing and Id say roughly 60-70% of breakouts during the last 2 weeks travel at least 10 pips.
Ofc this may be biased so I ruge you to backtest it if you have the software know-how - I don't.
If anyone has the ability to backtest,then please post results.
Position Sizing:
I tend to be very very agresive when it comes to position sizing as with only 5 pips at risk I can load up quite a bit and still be bellow the 5% of account risked per trade.
Hope this makes you some money.
Good luck!
Hello there.
I am new to this forum and I am a newbiew forex trader.
This is a very very simple strategy to understand and impliment and its also almost purely mechnical.
I have to warn you though,ive been making profits with it on a demo account for the last week but this does not really mean its going to be profitable in the future - the market may change.
I trade primarily the EUR/USD.
I plot daily pivot points on the chart.
S1
R1
S2
R2
Price has a tendancy to travel quite a bit when a S or R point is broken,usually at least by 10-20 pips in the direction of the breakout (breakdown).
What I do is use an entry order 1 pip above (bellow) the S1 or R2 and go long or short on the direction of the breakout with a stop loss order 5 pips away from entry and take profit 10 pips away from entry.
Some days you will get whipsawd,but I did some eyeballing and Id say roughly 60-70% of breakouts during the last 2 weeks travel at least 10 pips.
Ofc this may be biased so I ruge you to backtest it if you have the software know-how - I don't.
If anyone has the ability to backtest,then please post results.
Position Sizing:
I tend to be very very agresive when it comes to position sizing as with only 5 pips at risk I can load up quite a bit and still be bellow the 5% of account risked per trade.
Hope this makes you some money.
Good luck!