Scalping System JALNO

Attachment 4
Hi Guys,
Quite a lot of scalping systems on here, some threads died, some look good, some system use much subjectiveness. Today I bring you a non subjective profitable scalping trading system. This week total so far 39.5 pips. Largest Drawdown 13.5pips.
System based on MA cross, with 200 SMA confirmation. **(Simple Moving Average - Close Price)**

MA cross has major fallacy that in flat market you get sucked into whipsaw. However by not flipping trades, this can be avoided quite well. So, in nice moving trending market, system does VERY well as it oscillates nicely on 1 minute giving great edge. In flat market we just look to not get screwed by price action.

Visual testing over last month system can generate around 40-50 pips a week. Might not sound much, but DD is around 27pips.

Trading Hours: 0645-1700 London. (0845-1900 IC Markets Server)
Broker: Zero or 0.1 spread on EURUSD. There is about 10 of them. Aiming for 0.4/0.5 all in for EURUSD. Always there are deals on EURUSD, ADSS was doing 0.3 all in for a few months, Pepperstone doing $2 per RT or something like that when they migrated to UK, so it can pay to look around for best deal.
Pair: EURUSD and GBPUSD. (IC Markets pretty much Zero spread all day in EURUSD). DAX30 is a possibility.
SL: 13.5
TP: 4.5
Chart 1 Minute,

Entry Rules: Buy/Sell on Bar 2 Signal.(when colour change from red to blue is buy on 2nd candle and vice versa, must be above 200SMA for long and below for short)
Price (actual price not the bar indicator) Must be above 200 SMA (Simple Moving Average) for long and below for short. This very important because in strong 1 min trend you don't want to take counter trend signal. The 200 SMA stops you taking small retracement trades in big moves, as they are low probability trades.

Hold trade until SL or TP is hit, do not flip signal on reverse signal. (this stops lots of fake reverses in flat market, which is major problem in trend followers).
News; Close trade before news and no trades 30 min has passed after major news.

This week:
Monday: 4.5,4.5,4.5,4.5
Tuesday: 4.5, 4.5
Wednesday: 4.5, 0, 4.5
Thursday: 4.5, 4.5, 4.5, -13.5, 4.5,4.5
Friday: 4.5, 4.5, 4.5

Part of the template come from a post here from user YTG or something, I added the MA and formulated the R:R. The EA will make it much easier to trade it because 1 minute chart at times is quite intensive to watch all day.
EA will have option to increase lot size after loser, but not actually necessary. I only seen 1 loser in row recently, but for definite it can be more.

Using this template makes sure you always on right side of market, and takes the decision from the process. Its a black and white system.
TP of 4.5 might sound weird, not 5.0, but you would'nt believe how many times signal get to 4.6, 4.8, 4.7 etc.
The Risk reward obviously is inverse but not drastically so. Most scalpers on Asia take 2-3pips with Stop losses >20pips.

I attached indicator (to indicator folder) and Template. Screenshots of Monday example, EURUSD 1 min.
Good luck.

Thanks for this. Please excuse my ignorance. What is a bar 2 signal?

a very powerful system

thanks

When the 2nd bar changes colour. I.e take the trade on the open of the 2nd bar of red/blue.

48 pips for the week.
3 winners today so far.....BOOM.

update 52.5pips...Make that 4 in a row Today.
No more trades for me today. Have a good weekend!

Thanks, but I just finished coding EA over last few weeks.
I wanted to make EA with special features, stealth exits, etc. Next week I test it live.

Congratulations on your thread TradeForex1.
I notice that your hit rate is high even though the stop loss is large compared to the take profit......, that is good. Have you thought about modifications that should get you a 10pips take profit?

I looked at all variety of R:R permutations. 10 pips too high for 1 min chart.
10 ticks on DAX 1min is ok.
But too much of a stretch for Eurusd 1 min.
System most work in all seasons. Volatile days, quiet days, ranging days. etc.
Feel free to devise your own SL/TP but this is what i believe works best.
Contrary to modern myth, having an inverse R/R is not the end of the world when you run a strike rate at 90% its ok.

Thanks for the system, will give this a go.

Keep updating your results as its great to hear.

Last trade today at 18.30 (long. IC markets server time) just closed at +4.5. I didnt take it but was 5/5 today.
Week summary:
17 wins.
1 breakeven.
1 loss.
Total pips weekending nov 17th: +57.
Time for a beer.

Very good system TradeForex1... Staying very close to the market like this is really the best recipe for success. I took a look at IC Markets in Australia but of course they won't open accounts for U.S. citizens. Do you know (or can anyone chime in) what broker a U.S. trader can work with that offers anything even close to IC?

Week summary:
17 wins.
1 breakeven.
1 loss.
Total pips weekending nov 17th: +57.
Time for a beer.

Well done!

@jnevins: To make it clear - "Week summary" means friday only ? So, yes 17 winners for one day only Looks pretty good !

Would'nt be an expert by any stretch on which brokers you guys are stuck with. Had a quick look at oanda, 1.3 on Eurusd, so out the window.
This system is not spread sensitive, its spread critical. Even 0.2 higher can affect results.
Gain (forex.com) arent reknowned for DMA spreads, but maybe things change there. Interactive brokers?
I'll ask some of my closer buddies,

Week summary means total for week.
Only trades 3-4 times a day.
19 trades total this week.
If you want more trades looks stellar on DAX. Am working on DAX methodology currently.

Hello,
thank you very much for your system appreciate that.

Do you think that is possible to add to indicator push alert or e-mail when change color appeared, so before EA it will save a lot of time that you dont have to stare at chart all day just wait for alert on phone for example

just my cent

Thanks TF1.... Here is a screen shot showing my Oanda demo... 1.3 spread and took the trade according to main rules but 1.... Red bars, price below 200 SMA but the time was 12:38 EST on a Friday afternoon... uh oh.... 13.5 pip SL was a very good thing... will see how this plays out... but sticking to the rules and only trading during the suggested times is probably important. Will keep looking for a better spread for US traders.

1:00 update, stopped out... Lesson.. obey the rules.... (2nd image)

Yes this trade outside hours. Europe session over. Liquidity much lower.

There is a couple problems with this. If you need push or email alert means you are not at PC. When alert comes the trade open within 60 secs. Email can take 1-2 mins delivery, so late entry.
Problem 2, if you not at PC and using Mobile MT4, can't apply custom indicator, so hard to evaluate when to enter etc, cos cant load the JALNO indicator to mobile. This is a MT4 mobile constraint.
I think time better spent making proper 100% auto solution, so this what i did.

Hello TradeForex1,

Well done! Nice trading system.
What is role of the volume indicator in the system though.

Have nice weekend.

Roy

Its useful to see the Volume "coming alive" around 630am GMT. So the EURUSD market starting to take orders. Also, see the drop off post 5pm.
Also, you will see before major news (ECB press conference, NFP,etc) you will see dramatic drop in volume for that morning.
Typically I find these days are not great, volume is stagnant, ranges get miniscule.
For now, its not part of system, but certainly abnormally low volume does not help it.
It also helps traders educate themselves about volume when its there all the time and its influence + importance on Price action. In future, the volume indicator may become a important part of the system as it develops and notices that below "X" volume is not valid trade, for eg.