my new, Extremely simple, 2 indicator scalping/5min method

hello, i have recently invented this simple simple scalping system, that i have only used on the eur/usd 5min chart.

INDICATORS:

macd histogram: default setting with line drawn at 0, +.0002, -.0002

Zero Lag Stochastic[ZLS], Setting are: smoothing:2 Timeframe:5 [i dont think the timeframe setting really does anything, but i use it on 5 anyways] and horizontal lines at: 20, 50 and 80

(Optional) moving averages: 21 , 50 EMA this is not officially part of the system, i am testing them to see how they work as a filter to take trades only in direction they are indicating...whatever side the 21ema is on, of the 50 ema that is the direction we are lookin for trades, it has been successful but i have not officially made it a part of the system as i said before.

SIGNALS

we are looking for the MACD and ZLS (zero lag Stochastic) to be in agreement, it is kind of hard to explain what we are looking for in the ZLS, the concept is simple but it is hard to put it into words so bare with me.

for a long signal what we want is for the macd to be above zero, and the short stochastic line to be above the long ZLS line (white above red) we then want there to be a cross over in the ZLS white crossing below red, and then, when it crosses back up (white above red) the Macd must have stayed above the -.0002 the whole time the White ZLS line was below red (sometimes the signal is stronger if the macd stayed above zero, but using the -.ooo2 ls fine.)

IF THE FINAL CROSS THAT GIVES THE LONG SIGNAL IS ABOVE 80 DISREGARD THE SIGNAL.

what this shows us is that the market tryed to move down but there was toomuch strength, and it was unable to go down any with any force and it was then repeled by the bulls and slingshoted up.

as soon as you get a close of a candle with some white line above the redline in the ZLS, and the macd histogram was above -.0002 the entire time you buy long on the next candle.

for long signals everything is the same but reversed.

and the macd must stay below the +.0002

also if you like you can use a 21 and 50 ema as a filter, if 21 above 50 only take long signals if 50 above 21 only take short signals. this is not officially part of the system, as i am still testing it, but i has had mixed results so far. today it would have kept me out of three trades. one i lost 10 pips, one i made 1 pip and another i made +15 pips.

so you can test it youself as i continue to0 and mabye we can come to a descision on it or find a better filter.

i would like to improve on this sysem with ForexFactroy, but i also want to KISS keep. it .simple. stupid.

for money management, i use a 10 pip stoploss ( i am concidering using 10 + spread which for me would be a 12 pip sl on eurusd, but for the timebeing i am sticking with 10) and

i get to +4 i set to break even.
+5 i set to b/e+1

+8 b/e+2

+10 be+3

+15 be+6

+18 be+8

+20 be+10 and keep going in this fashion till i get to be+ 15 then i set the trailing stop (15 pips away is the minimum) and i leave it till i get stopped out or i see something that makes me want to sell such as a ZLS cross in the opposite direcition

DOES ANYONE ELSE HAVE ANY IDEAS FOR A SL PLAN I AM NOT VERY CONFIDANT IN IT.

any questoins or comments feel free to ask, i am posting today's day of trades. the arrows show the directon that the trades were taken, green line means profitable, red means unprofitable and white means breakeven or didnt take teh trade because the signal was given in the no trade zone (above 80 or below 20)

thanks and enjoy.

Do you have the ZLS indicator you can post?
Thanks

i also forgot to meantion in the background of the picture you will see a grey box that is the i sessions indicator i set it so that it shows from 1:45 am to 1pm eastern time, this is the only time i trade this system on the eur/usd which is the only pair i have tried, and during this time i only take trades if the 12 period EMA of the volume is above 35.

you can see this is the bottom of the picture (bottom indicator... i set the actual volume bars colour to "none" so that you can only see the ema, and a 12period EMA on 5min chart = 1hr)


you can take the macd indicator i attached and just set the colour of the lines themselves to "none"

Hi, I like simple - let me try it out. Thanks for posting.

Kind regards
Pardy

i am suprized there is not more intererst in this systen.

this system has been profitable 18/18 days i have traded it. average pips per day for eur.usd= 23

TRY IT OUT GUYS COMON

Yes, i am interested.New to scalping and will try it out.

Thanks for sharing.

Zu

I like what I see and want to thank you for sharing. Please keep this post going. Don't be discouraged on the number of replies your receiving. The weekend is coming up which is a slow period for this forum my friend.

will do, havin a pretty good day so far, its 10:11am and i have had 6 trades so far and 4 of them are profitable for a total of 10 pips.

will post the full chart like i did on first post when the volume slows down for the day ( i hate fridays, i wish i could trade all weekend long)

I'm waiting to see your charts.
I don't see 6 trades. I don't see any. I'm sure I do not understand the rules.

I'd also like to see more of your charts not only the winning trades but also losing ones to see what to avoid. Also have you tried trading on 1M charts (with a smaller SL) and using confirmation on 5M? In other words trade only when both the 1M and 5M are in agreement as to buy or sell? (Similar to what expat does in his thread).

Hi, here is todays trades, it was a good day up untill, for the first time ever, the zls started whipsawing, this give me three different signals in under 1 hr and caused me to lose 27 pips in total and i ended the day with -17. i am searching for a filter to prevent this, anyone with any ideas, please share.

if you look at teh second trade of the day today, i should not have taken it because the white zls line was above 80, but i did not notice at the time. this would have saved me10 pips

i also added a example of a long trade that went perfectly, i will be working on some more examples for you guys, if there is any interest.

please post any ideas you have for filters or anything in general relating tothis system, it has taken alot of work to develop this, and i am constantly tweaking it.

thanks and good luck

p.s i will be posting the chart of every trading day, of the eur.usd session

also, for a trade to be given, if the macd goes to the other side of the zero line but doesnt cross the .0002 line, then it must be back onto the correct side when the zls cross back over and the candel closes.

i did not make that a requirement today and it would have kept me out of some bad trades, and lookin back at other days it would have saved me some pippage as well...

Hi Nik,
I'm convinced, will try, will post the trade later.....thanks. Don't be frustrated

Hi Nik,
U've tried the G/J scalping by 'Imran Sait', right? How did u find it, pls comment? Recently, someone claimed it's scam, really?

How is that a scam? Imran is merely offering his efforts on the forum.

It's under his commend section....no hard feeling, commented by someone.

That is a rediculous assertion to claim that this individual is even promoting a system that is somehow a scam. Puts a considerable amount of information and time into his thread. If someone does not like the material, then move on the the next holy grail quest. No doubt, any person alleging a scam is not a trader by profession or intent. Yet another unhappy soul that has not liked the toy they are playing with. Geez, get a clue.

yes, i have tried the system, but was not successful with it, however, he reccomended it for gbp/jpy and for me the spread on gbp/jpy is 8pips, so that is the only pair i dont trade because of the high spread, of all the commonly traded pairs. (eur/usd for me is 2pip. i use fxdd)

i tired imrans system for quite a while, longer then i do most systems i try out, and i got alot of false signals, and found it was not the scalping system for me.

i much prefer this system

Hi Nik,

Are u aware that the macd histogram (macd traditional2.ex4) actually producing 2x the value of a normal macd histogram?

U can do a manual subtraction to verify...or is that on purpose.

cheers

i am sorry, what i am using is a traditional macd d with the colour of the lines set to None.

whta i reccomend is that you use teh macd i have attached in my first post and just set the colour of the lines to none,

and then make horizontal lines at .0002 and -.0002