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Simple Scalping

  • Post #1
  • Quote
  • First Post: Edited Nov 16, 2017 7:57am Sep 11, 2017 1:46am | Edited Nov 16, 2017 7:57am
Hello all.


Simple scalping. Thought I'd share the strategy I use.

Scalping suits me. I'd rather be out of the market more often than in it.

1 or 5 Min chart, Any pair, low spread.

Bollinger bands 25:2:Close
Smoothed MA 120 High
Smoothed MA 120 Low

The double MAs are handy when price is there. Stops you wondering where price is closing and gives a bit of a buffer.

Direction- BB ma in relation to main MAs

Sell off upper band TP lower band.
Vice versa for long

If market is sideways, still valid but better value when MAs start to trend.


Keep an eye on major s/r (Be careful if your signal is at prev swing high/low.Here,a bit of Price action and price breakout knowledge is handy).
If in doubt, its always better to leave it and wait for a better opportunity. These opportunities will crop up dozens of times a day.

High impact news - Personally I stay out till its out of the way.

SL up to you.
Prev swing high/low is probably best.




Less is more !

That's it.
Good luck
Please note. I will not be sharing any of my personal trades (aside from illustration purposes) nor will I provide trading signals.
Your trades are your responsibility and yours alone.
I am simply sharing a trading technique that has been successful for me.

EDIT --
Attached File
File Type: ex4 BB_Simple_Scalp.ex4   12 KB | 5,610 downloads | Uploaded Sep 14, 2017 7:28am
Nice add on developed and contributed by abokwaik. Makes entry opportunities easier to spot
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Where price is now, it has been before, and will be again.
dont wanna be rude but this system doesnt has any statistical edge to be profitable in long run
  • Post #3
  • Quote
  • Edited at 12:34pm Sep 11, 2017 4:30am | Edited at 12:34pm
Quoting xdj3richo
dont wanna be rude but this system doesnt has any statistical edge to be profitable in long run
None taken

I don't try and get as many trades in as I can.
I'm happy to sit in front of my computer for half an hour, an hour whatever waiting for a decent opportunity based on my rules.
If one comes along, the trade rarely lasts more than 15/20 mins.
I'm more than happy to take my 10/15 pips or whatever, close my laptop, get on my bike and go to the beach and come back later.
You see this "system" is all about subjectivity. My trade is down to me. It's why it could never be automated into an ea.
In any case, I've yet to see any ea work in the long run.
The thing is, the old days of nice intraday trends have finished thanks to the ultra low commissions and HFT systems coming out of the east.
In and out. That's it.
Where price is now, it has been before, and will be again.
For example a trade turned up on U/J right on London open this morning (9 am here in France)
Only a small one , 9 pips net. There might not be enough meat on this particular sandwich for some, but I'm happy with that.
Another "sitter" like that may turn up this morning, it may not. I don't care.
In 10 mins I earned more money than I used to do sat all day on someones roof in blazing sunshine.
Where price is now, it has been before, and will be again.
Color me surprised. This system looks like it works well in a trending market. Using somewhere near your chart did some backtesting selling only in the direction of the MA.

This is ~48 pips in 4 hours with minimal drawdown. Will have to do so more testing but this system as simple as it sounds seems promising..

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  • Post #6
  • Quote
  • Edited at 5:25am Sep 11, 2017 5:14am | Edited at 5:25am
What other timeframes do you use for your analysis, or are you solely looking at the 1min chart? Also which pairs do you trade?
cheers
  • Post #7
  • Quote
  • Edited at 6:29am Sep 11, 2017 5:24am | Edited at 6:29am
Quoting Hazza88
What other timeframes do you use for your analysis, or are you solely looking at the 1min chart? Also which pairs do you trade? cheers
None at all. I do look at M15 to see nearest s/r above and below (I personally use the "trading in the buff" method for seeing that) and stick a line on the chart.
That's it. M1 only.(That's not to say it isn't applicable to other tf's, just that I prefer to be in and out)
Any pair is sound but because its scalping you obviously need your spreads as low as possible? I tend to stick to UJ EU etc as I'm with an ECN and for these 2 I generally get around zero spread and pay 0.6 commission.
Where price is now, it has been before, and will be again.
Both charts are EURUSD M1. Currently just doing some manual backtesting around the current market environment and found a more realistic example. I am using the Heiken Ashi indicator since M1 charts can be choppy.

In this example we have a 10 pip TP and a 5 pip stop loss for a 2:1 RR. We aren't in a heavy trending market, but we've just experienced a breakout. We skip any trades that are consolidating around the MA and try to find clear entries. Obviously I have hindsight (perfect entries) and no psychology weighing me down so this is still unrepresentative of real trading. Over the duration of approximately 2 hours, we experience 3 losses and 4 wins netting us 25 pips. Unfortunately this did require some discretion particularly at the +36 pip breakout because there was a bollinger band contraction, but price did not actually touch the BB.

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So as xdj3richo pointed out, we would need to do some more in-depth testing to define an edge and see during what market conditions did this system perform poorly. Since this system is relatively straight forward creating an EA to do that wouldn't be difficult.

Skimming through the higher timeframes, it looks like as long as you have defined a R:R based on the market conditions, you can use this system on any time frame.

Thanks for sharing the system Jenx. Very interesting. I'll be following this thread for further developments.
Quoting Tremulous
Both charts are EURUSD M1. Currently just doing some manual backtesting around the current market environment and found a more realistic example. I am using the Heiken Ashi indicator since M1 charts can be choppy. In this example we have a 10 pip TP and a 5 pip stop loss for a 2:1 RR. We aren't in a heavy trending market, but we've just experienced a breakout. We skip any trades that are consolidating around the MA and try to find clear entries. Obviously I have hindsight (perfect entries) and no psychology weighing me down so this is still unrepresentative...
Nice to see.
To be honest, it takes so much subjectivity and as you say, discretion, that I doubt an effective ea could be created on it.( I doubt any ea has ever been profitable in the long run in any case).
One "tweak" I had thought of incorporating was using the M5 to refine the bands as s/r.
But I don't expect too much from my trading.I can fund my lifestyle and that's all that really matters to me. I've been doing this too long to chase the Ferrari.
Thanks for your input and look forward to more.
Cheers
Where price is now, it has been before, and will be again.
Would be awesome to see a few of your live trades Jen
Quoting Hazza88
Would be awesome to see a few of your live trades Jen
Firstly, its so basic, there isn't a great deal to see.
Secondly, in what way would it help?

I didn't share my technique in order to prove anything.
I'm not selling anything.
I spent years losing money, watching colours change and lines cross over each other.
If only back then I'd realised less was more.

This thread is purely me sharing a simple way of trading that I have found. Nothing more.
Good luck
Where price is now, it has been before, and will be again.
sorry if this is a dumb question.

so when the price is action is above the simple move average you buy at the bottom of the bollinger, and when the price is below you sell at the top of the bollinger?

Ho to work out your stop losses?
I am looking forward to tracking this trading method. I will post a few charts later today.
Know your edge and trade within it
USDJPY 1 Minute chart: Orange boxes for buy entries .
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Know your edge and trade within it
Quoting Violenteer
sorry if this is a dumb question. so when the price is action is above the simple move average you buy at the bottom of the bollinger, and when the price is below you sell at the top of the bollinger? Ho to work out your stop losses?
Sorry just replied but didn't scrub out my acc number on the pic!

Basically this was about an hour ago. Green line was about where I had the S/L.
I had missed the earlier one but as that hadn't really gone very far I was happy to get on it so soon after
I took 10 pips. Clearly more on the table but you don't know that at the time.
I don't really get hung up on ratios but everyone to their own.
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Where price is now, it has been before, and will be again.
EURUSD 1 Minute chart: Entries so far.

Update: 10 pip targets both hit on these 2 entires. Very little heat take on each other these trades.
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Know your edge and trade within it
Jenx , Try file --- save as picture.
Know your edge and trade within it
  • Post #18
  • Quote
  • Edited at 8:45am Sep 11, 2017 8:21am | Edited at 8:45am
On UJ I have 108.75/86 as possible solid resistance, and given the big gap back down at 107.85 I'd be wary of taking any more longs till we see what happens. If it turns, theres a few pips to be bagged on the way down no problem.
Where price is now, it has been before, and will be again.
Quoting Jenx
On UJ I have 108.75/86 as possible solid resistance, and given the big gap back down at 107.85 I'd be wary of taking any more longs till we see what happens. If it turns, theres a few pips to be bagged on the way down no problem.
on m15 i see the next R around 109.40 and the S around 108.50.
how do you spot 108.75/86 as a R?

by the way nice thread! thx!
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I know that you and I know nothing.
Look at the big spike
Everyday better.
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