The scalping averager - profitable FOREX scalping strategy

How to manage stop loss if we are looking for profit of only couple of pips. Apparently big stop loss is counterproductive and tight stop loss ensures huge percentage of losing trades.

One of the solutions, is to ask only for what you are willing to give. Stop loss equal to take profit (as in Zero – the best forex scalping strategy).

It is also possible, to discard stop loss completely. But then what to do with small percentage of positions that will never move in profit ? Is such a a strategy doomed from beggining ?

 

We are here to show you a profitable forex strategy with averaging as a solution.

 

Forex strategy indicators: Zig zag (4,5,3)

Timeframe: 1 hour

Currency pair: Any, we choose forex pair according to historical price range.

 

For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.

 

The scalping averager Forex strategy rules:

We establish historical price range, by switching to monthly timeframe. We establish maximum and minimum value that price has reached since inception. We divide it into 3 thirds. Upper third is sell only. Central zone – is no trade zone.  Bottom third is buy only zone.

 

Sell only zone of historical price range.

Sell.We enter once previous price high (marked by zig zag) is reached again.

 

Buy only zone of historical price range.

Buy:we enter once previous price low (marked by zig zag) is reached again.

 

No position can be opened at worse price than any of currently opened positions !

 

Take profit: 6 Pips

 

There is a power in simplicity and not taking no for an answer. This strategy has its risk, but they are manageable and outweighed by rewards in a long run.

 

Loss: 100 pips.

Only after position reaches loss of 100 pips, we disregard Take profit of 6 pips. We will be looking to close this position together with other losing trades by averaging.

 

Averaging take profit:Average price of all positions + 50 - 100 pips of profit.

 

Strategy requires about 3 000 – 6000 USD of free balance to trade 1 microlot and 1 currency pair.

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THEFOREXKINGS

“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 

 

Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

—  Marian, Proprietor of TheForexkings.com