Daytrading/scalping with high leverage - my proven strategy

When I posted the picture that you saw, I didn't have Ichimoku on this template (I was looking at another template). But the price was above the cloud. Here's how it looks if you use my present template:

I think not only EJ is a wild beast, GJ too.

Favorite ok.
Thank you so much great system.
I follow with attention and look forward to your template.
Hello and thank you.

Thank you, Matrix8756!

Thank you RJ and George. That's what common sense is telling me. Not to mention that we never have to wait until the SL gets hit.

lines are round numbers set of 100, daily weekly monthly hi lows.

im looking for bar color to change or not at these levels.

like to see 72 stoch under the 20 and the 12 spiking up for a buy, stuff like that

looking for bounces off the certain lines back to the 200 channel during high volatility whipsaws and ranges

very much an infant atm but i figured id post where i was at since i haven't finished yet

if this thing pans out like i think ill post a zip with indies and tpl, ideally i find a CSM that works well with this, i think currency strength with the major SR's is the ticket

OK, here's the post I promised:

So, we trade DNA-style, which means that we have a big lot size (1 pip is equal 1%), we want 20+% per day and we have pretty big SL, bigger than the potential profit. All this means that we want very accurate, "pinpoint" entries.

We have two templates, Babon-A and Babon-B.

Babon-A is our main template, it contains only three indicators (Babon Slope, TMA M5 and Ichimoku), so we can see what is going on and can watch the Babon Slope's signals. As you remember, Babon Slope can change it's color as long as the candle isn't closed. That's why for us the valid signal is the second candle. If the color changed from red to blue, the second "blue candle" is a signal candle for going long. If the color changed from blue to red, the second "red candle" is a signal candle for going short.

Babon-B allows us to get H1's "big picture" and it also contains several different TMAs that make our exits much easier and much more profitable.

At any given moment we have to know which of the three options we have right now:

1). We're gonna wait for a long Babon Slope's signal
or
2). We're gonna wait for a short Babon Slope's signal
or
3). We don't want to take any signals at all

How do we decide?

Obviously, we don't trade during the IMPORTANT news and we have to stop taking any signals at least 30 minutes (or maybe even 60 minutes) before the important news (and I don't mean so called "red news", I'm talking about someting like NFP, Unempoyment Claims, BOJ's actions etc.)

But let's say it is not the news' time. Then we take a look at the "Babon-A" template.

A very important part of our decision-making is Ichimoku cloud, that's the first thing we look at. If the price is above Ichimoku cloud, it is a good reason to go long. If the price is below Ichimoku cloud, it is a good reason to go short. If the price is inside Ichimoku cloud, we don't want to take any signals until the price goes outside.

Let's say the price is above Ichimoku cloud. Now we have to take a look at the other important details. We want the price going from the lower TMA M5 band to the upper TMA M5 band, in other words from the lower yellow line to the upper yellow line. The TMA M5 channel has to have the right angle: it can go up or it can be horizontal (or at least almost horizontal), but for the long signal we don't want to see TMA M5 channel going down. We also want to see the right M1 Price Action, for the long signal we want to see higher highs and higher lows. Then we look at Babon-B's H1. If H1 shows the trend up or if it was a trend down but now the price started going up, then we can decide that basically H1 supports our decision to go long.

So we decided that we'll take the Babon Slope's long signals. Now we wait for the next long signal. But when we see it, we have to evaluate it. Of course, if during this time the situation changed, for example the price is now below Ichimoku, or we don't like M1 Price Action any more, or the H1's big picture changed etc. - then we wouldn't take this signal at any case. But let's say that the situation still looks good for the long signals. Then we determine whether this trade has a good potential. We look at the distance between the price and the upper TMA M5 band (the upper yellow line). Yes, TMA M5 repaints, but it repaints less than TMA M1, it is much more stable and steady than TMA M1, and this distance between the price and the upper yellow line is very important. Basically the more the distance is, the more potential this trade has. At M1 price usually goes more or less between the upper TMA M5 band and the lower TMA M5 band, it can go much further if the trend is good, but we can't rely on it. If the distance between the price and the upper yellow band is less than 10 pips there are good chances that we won't get even those 10 pips and that this upper line would work like a strong resistance. But let's say that the distance is good, something like between 10 and 30 pips. Does that mean that we have to enter immediately? No, first we have to take another look at M1 Price Action, and only then, if we still like it, we enter. And please pay attention to the previous candle, it is very important because the candle that is too long can cause a fake Babon Slope's signal! Don't enter if the previous candle is 10+ pips!

So we entered long. We'll have an emergency SL 25-30 pips (25 pips for EURUSD, GBPUSD etc., 30 pips for EURJPY, GBPJPY). We don't need TP. Now we have to watch both templates, Babon-A M1 and Babon-B M1, it is also a good idea to have Babon-B H1 open.

If everything is OK and the price goes up, we want to exit depending on the strength of the movement. If the trend is so-so, we'd better exit when the price at Babon-B M1 crosses TMA M1 upper band (the upper black line). If the trend is good, we want to wait at least until the price crosses TMA M5 (the upper yellow line). If the trend is very good, we can wait until the price crosses TMA M15 (the upper red line). At the same time we have to pay attention to H1: how close is the price to the blue line (TMA H1)? Sometimes when the trend is not just very good, but excellent, we can exit when the price crosses the blue H1 line. Whatever the TMA is, I usually try to exit at the end of the minute.

But at the same time we have to remember - if Babon Slope changes color to red or if the price went under Babon Slope's line, it is a very good sign that the up-movement is over or almost over. Yes, sometimes I don't exit because my TMA lines show that I'd better wait, but you need a lot of practice to decide what is more important at the moment - the movement's strength and momentum or the Babon's signal.

We also have to remember - if the price goes inside the Ichimoku cloud, we'd better exit.

I also exit if the M1 candle is too long and this long candle crossed one of the TMAs.

And, of course, if we see that the price went against us, we'd better exit with a small profit or a small loss, after all we can always re-enter if the situation improves.

One more thing: Babon Slope doesn't repaint, but TMA repaints. I'm not going to give any explanations about the "repainting issues" and I don't want any dicussions about this subject, if somebody wants to learn more about TMA - please go to the "ExtremeTMA" thread. TMA is one of the best indicators I've ever seen, it works perfectly in real time and I just don't care about "repainting" the history.

Ladies and gentlemen, I don't want to illustrate all those explanations not because I'm lazy, but on purpose! (Of course, you can outsmart me and look at the posts 932 and 935 on the next page)

First of all I want you to go to the post 747 (page 50)
http://www.forexfactory.com/showthre...19#post6535319
open all the links I provided there and study everything I showed. That would give you the summary of everything I showed you before.

Second I want you to re-read this post 2-3 times, download my two templates, watch them during the trading and after that ask the questions. I'll be very glad to give you all the answers and I'll try to illustrate my answers as good as possible. I believe this way you'll understand everything much faster because the teaching-learning must be interactive!

In a couple of days, after you master all this, I'll show you two very important and very powerful TMA's patterns (one of them is VERY-VERY profitable), I'll also explain how to enterpret TMA H1 and TMA H4. Those patterns together with this post and post 747 - that's basically the whole system!

Please make sure that you have not only the templates but also the necessary indicators. Ichimoku is a part of the Metatrader4, but you also have to have TMA and Babon Slope, I provided them too. If you download everything properly, your Babon-A M1, Babon-B M1 and Babon-B H1 would look like this:

I cant agree more! I am a hedging system with Currency strength recently with some success, however its a kinda like a martingle system so I am not going to discuss here because I do not want to get comments about it.

I see people here are trading the same concept which is also using currency strength so I do hope we can share some ideas to make us trading better!


I trade one hour before and two or three hours after market opens (London and New York open),

When the market opens I look at currency strength, wait until i see one currency is 7 (strong enough), one currency is 2( weak enough) then i open the chart with these two currency.

whenever i open the chart, you probably can see the chart has just formed a trend, then what i do is just wait for the pullback then follow the trend.

I just use line chart on M5 but I think we can apply it to M1 as well!

I am using ECN broker so that spread is not a main issue to me so that i trade all pairs, but i usually trade pairs have ADR more than 100 pips



As we have a lot of good traders here, I would like to have some suggestions from you guys of how we can blend the currency strength to scalp a more effective way.


love to here from "favorite" about how he thought about that!

That's how I made 25 pips.

The first picture shows my Babon-A template.

The second picture shows my Babon-B template.

I decided not to exit when the price crossed the TMA M1 (the black line, I marked this place with the green "star") because I saw the good H1 trend and a good movement, so I decided to wait until the price would cross the TMA M5 (the yellow line).

When the price went up the drawdown was very small, 4-5 pips, so I decided not to exit.

Then, as you can see, the price went down again and I exited after a very long candle crossed the yellow line. I was almost sure that the price would go further (and as you can see it went to the red line), but I didn't want to risk, 25 pips is a very good profit when you trade M1 (my daily goal is 30%). And, of course, you can always re-enter after the next Babon Slope's signal.

sunhoyu, it is a very interesting approach! I would like you to test this method trading M1 and please tell us about your M1 results in the future! I was going to use this approach myself but right now the Babon system is not ready yet, so I prefer to trade only EURJPY. But when I'm done with Babon and I know it works then I'm going to do exactly what you explained and choose the currency that has more potential at the moment!

And, of course, I hope that perfectgrim will finish his work!

Thank you, guys!

sure! I will be testing your M1 Babon system to see what it would bring me.

After i read through the two time frame approach u just post, i do thing it has a lot of potential and seems working well when i look at my chart!

but then in terms of stop lose, I think what RJ post earlier about using swing high and low is the best to set SL theoretically .

Of course I have no idea how to set SL the best with your system, I will experiment to see which way is the best to set SL.

+10 pips. I'm done for today. When I entered the distance between the price and the yellow line was 14 pips, that's pretty good.

I exited when the price crossed TMA M1 (the black line) at the end of the minute. I could wait until the price would cross the yellow line, but the difference would be 3-4 pips, and the trend was not that good.

sunhoyu, I'm very glad that you're interested in Babon! Together we can make it much better!

About the SL: you see, the problem is I'm not sure myself what is the best SL, because as I said before it is a new system and I need at least a couple of months to make it the best it can be. When I was talking about the system's improvement, I mostly meant that I had to find the best SL!

And, of course, I would be glad to hear any suggestions how to improve Babon, and I don't mean just sunhoyu, I mean all the thread's participants!

I`m in

Today i`m testing a little system (+visual backtest for this mounth) ... a combi between DNA-Genesys-Favorite

Excellent work, Favorite! I'm getting to work to test it. Thank you!

Simonik, I'm really very glad to hear that! Genesys is a very good system, and this kind of hybrid can have a huge potential!

That's great! Thank you, Joanna!

What I showed so far is the basic modification, so to speak. It is very profitable itself, but on Wednesday-Thursday I'll show how to trade Babon even more profitable and safer way with the TMA patterns I already mentioned.

Hello dna,

i followed your thread with interest, and you showed how you made about 1000% in one week.
Unfortunately your thread was highjacked from other traders, they show there whey of trading with a lot of fancy indicators. In my point of view this thread is destroyed.