Simple H4 Trend Scalping Method | Forex Factory

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Simple H4 Trend Scalping Method

  • #1
  • First Post: Edited Sep 1, 2014 4:15pm Aug 22, 2014 11:17am | Edited Sep 1, 2014 4:15pm
Hello and welcome to my journal. I'm looking for a H4 trading method that will enable me to have plenty of free time and make good returns. I'd like to keep this as simple as possible and am starting off using stochistics and moving averages (using a cool tool I found on the internet).

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Click to Enlarge Name: movingaveragecrossoveralertsettings.png Size: 346 KB
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Attached File(s)
File Type: mq4 MA Crossover Alert.mq4   8 KB | 812 downloads
  • #2
  • Aug 22, 2014 11:19am Aug 22, 2014 11:19am
EURUSD (WIN)

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  • #3
  • Aug 22, 2014 12:53pm Aug 22, 2014 12:53pm
Thanks for sharing your strategy!
Do you setup the MA Crossover indicator just like the picture in your first post (except for the 2 and 3 MA ofcourse)?

Only buy/sell when 8/13 EMA is showing trend? And Im guessing that we only sell when 8 is below 13 and vice versa?

Subscribed!

EDIT: Aha! Just realized what you meant by "2. No braiding"!
  • #4
  • Edited 5:28pm Aug 22, 2014 5:00pm | Edited 5:28pm
Quoting spufuz
Thanks for sharing your strategy! Do you setup the MA Crossover indicator just like the picture in your first post (except for the 2 and 3 MA ofcourse)? Only buy/sell when 8/13 EMA is showing trend? And Im guessing that we only sell when 8 is below 13 and vice versa? Subscribed! EDIT: Aha! Just realized what you meant by "2. No braiding"!
Yes, sorry that was perhaps not clear from the image (included to explain the indicator functions in case people want to try out different settings for any reason). Like you say, I'm using the exact same settings as in the picture, except 2 for the Fast MA Period and 3 for the slow MA Period.

When 8 EMA is below 13 EMA I'm only looking for short setups. When 8 EMA is above 13 EMA I'm only looking for long setups. I try to keep it as simple as possible. If they are both more or less together and flat this indicates ranging behaviour and I will not trade until after the breakout.

"No braiding" - yes, braiding is when the two Stochastics lines keep crossing over eachother or zigzagging close to eachother. It is higher probability for the trade if preceeded by at least one nice, smooth Stochastics oscillation.
  • #5
  • Aug 23, 2014 3:27am Aug 23, 2014 3:27am
Quoting Ethlao
{quote} (included to explain the indicator functions in case people want to try out different settings for any reason).
I have been experimenting in the past with 1/11 and will check out the 2/3 setting too!

Ive been looking for a setting on the stoch that can help us with this indicator on the H4 and the 5, 3, 3 looks quite good with your rules applied.

This system looks quite interesting with heiken ashi bars also!
A lot to test here, looking forward to more posts and trades from you!
  • #6
  • Edited 4:36pm Aug 23, 2014 3:56am | Edited 4:36pm
Quoting spufuz
{quote} I have been experimenting in the past with 1/11 and will check out the 2/3 setting too! Ive been looking for a setting on the stoch that can help us with this indicator on the H4 and the 5, 3, 3 looks quite good with your rules applied. This system looks quite interesting with heiken ashi bars also! A lot to test here, looking forward to more posts and trades from you!
Great and thanks for your input!

I will check out the 1/11 MA cross as entry trigger too. Heiken Ashi - yes, earlier on I was testing with a simple heiken ashi filter too for entry confirmation ( must be blue for longs, red for shorts). I found that if Stochastics indicates an entry then heiken ashi will be in agreement too and using a heiken ashi filter without the stochs generates more trades but more false entries too. Please do share your findings though or if you have any different ways to use it. Any ideas welcomed!
  • #7
  • Last Post: Aug 23, 2014 9:11am Aug 23, 2014 9:11am
Here are the back-testing results I got for many pairs for 2014 YTD, using rules in post 1.

The ones I will forward-test on demo are listed in bold.

EURUSD WIN: 8 LOSS: 4 TOTAL ENTRIES: 12 WINRATE= 66%
GBPUSD WIN: 6 LOSS: 3 TOTAL ENTRIES: 9 WINRATE= 66%
EURJPY WIN: 12 LOSS: 2 TOTAL ENTRIES: 14 WINRATE= 85%
GBPJPY WIN: 7 LOSS: 4 TOTAL ENTRIES: 11 WINRATE= 63%
AUDUSD WIN: 10 LOSS: 5 TOTAL ENTRIES: 15 WINRATE= 66 %
AUDJPY WIN: 10 LOSS: 1 TOTAL ENTRIES: 11 WINRATE= 90 %
NZDUSD WIN: 9 LOSS: 3 TOTAL ENTRIES: 12 WINRATE= 75%
NZDJPY WIN: 4 LOSS: 10 TOTAL ENTRIES: 14 WINRATE= 28%
EURAUD WIN: 11 LOSS: 5 TOTAL ENTRIES: 16 WINRATE= 69%
EURCAD WIN: 6 LOSS: 5 TOTAL ENTRIES: 11 WINRATE= 54%
GBPAUD WIN: 6 LOSS: 5 TOTAL ENTRIES: 11 WINRATE= 54%
GBPCAD WIN: 4 LOSS: 5 TOTAL ENTRIES: 9 WINRATE= 44%
USDJPY WIN: 8 LOSS: 3 TOTAL ENTRIES: 11 WINRATE= 72%
USDCAD WIN: 8 LOSS: 4 TOTAL ENTRIES: 12 WINRATE= 66%
CADJPY WIN: 12 LOSS: 2 TOTAL ENTRIES: 14 WINRATE= 85%
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