4hr - 1hr Scalping Method

4 Hr Scalping Method

Aloha to everyone at FF.

I have read several different methods overtime during my education of learning the Forex. Many systems offer great incite into learning a trading system. However, I guess I am just a bonehead and do not catch on very quickly.

Therefore, I have decided to post my own trading method, which is still in the early stages of testing, but I thought I would share and see what others though of it. All comments are welcome.

The system is quite simple in my opinion and could be used on the 4hr and even the 1hr charts. Its base solely on price action itself and since it is a scalping method. I am going to small profits. However, as you will see potentials for some nice pips to take home.

You look at the current 4hr bar or candle stick. What you are waiting for is the close of the bar or candle.

Long Position:
From the close price, you would put a buy order 8 pips above the close price with a 12-pip stop loss.

Short Position:
From the close price, you would put a short order 8-pips below the close pricing with a 12-pips stop loss.

I propose trading 2 lots. First lot with a profit projection of 10 pips. Stop loss would be moved to breakeven with a trailing stop of 20 pips.

Not all filled positions would make the additional pips, but once you banked the first 10 and set the stop to breakeven. You good.

I feel this system lends itself to both the 4 and 1 hour charts. I myself will begin testing it on the 4hr chart.

I have attached and example of my strategy with a what if trade just to show the concept.

I think this would be a great EA. However, I have no programming skills at all.

Any comments or suggestions would be appreciated.

I plan on starting this tomorrow and keeping it up to date as much as possible. I do have a full time job.

Thanks

Jump

Hello Jump,

I am unable to read the notes on the chart. Is it safe to presume you are taking both positions, and letting the market take the direction? You are only allowing for a 16 pip spread between buy and sell orders. You could get hit by a whipsawing market, and be stopped out on both orders.

Regards,
Clansman

can you put past performance here?

I think you need to trade right at the beginning of the London Open or New York open (the nearest candle) and set the stop loss to maybe 20 and let the TP be higher, maybe 80 or so for this to work. Hoepfully for every couple of losses it would hit a home run to make up for them.

I don't understand why you call it scalping. Looks more like breakout trading to me. Might be worth a good forward test!

I appreciate the comments so far. I don't know if I had made it clear or not, but This is a method I had been thinking over here of late.

I think I think there might be some rethinking needed in regards to the stop loss and targets I had previously stated.

I will post later today as to what has unfolded for myself. Also look to paper and demo and post my results.

Right now I have been looking at the hour hour and then zooming down to the 15 min chart to see how price action moved during that four hour period to determine if both buy and sell here hit and how the profit and stop loss would work.

I do appreciate the comments so far.

Thanks

hi jumpmanz5....

what pairs do you usually trading with this system...
especially for 12 pips SL....

thx in advance

This is an interesting system i have been toying with an idea close to this but kinda based on the daily candles,i was influenced mostly after reading SRDC I in january, a system like this can be very profitable over time, i really wish someone would make an ea for this based on the EUR/USD 4hr candles.

This is a really trading method you have there.. i hope it really works for you

Just fucking backtest it yourself you lazy cunt

I have opened a similar thread, GBP H4 breakout.

Whatever H4 candle you chose, in whatever pair, you have to move into H1 or minor timeframe to analyze what is happening after the close of H4 candle. If there is a strong breakout, if there is a breakout without to hit the TP, or if the price does a pullback and hit the stop loss. The open and the close of the H4 are simples support and resistance.

No guarantee that the system, without analyzing, is profitable in the time.