Adding to the winner. Algo scalping FOREX strategy

When developing strategy capable of effectively adding to the winner, we have found this one (and some more) surprisingly profitable setting. The settings are simple. We expect the price continue to move in the direction of main trend and momentum. Therefore, we place up to 12 pending orders in that direction. All of them with tight stop loss of 5 pips and humble profit of 10 pips.

Strategy uses multiple pending orders that are relatively close to each other therefore it is more demanding on time for trading. Results are worth it however.

 

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.

 

Strategy was tested on 1H EURUSD data from 01.012013 to 01.012016.

 

Used forex indicators

RSI (relative strength index) 20 and 50. Combination of these oscillators works effectively in separating the uptrend from downtrend, while avoiding trading in range that is typical with low momentum. Additional lines of 51 (for uptrend) and 49 (for downtrend) are used.

Envelopes forex indicator. Envelopes are a go to tool, when you try to find good price for entry. There are many various setting that are working well with this particular approach. In this forex strategy envelopes with period of 10 are used (deviation 0,1).

 

Forex strategy rules

 

Sell:

 

 

Both RSI (50 and 41) trending below 49 line signalizing predominantly downward market momentum. We enter only short trades.

Signal: Price crossing the upper envelopes line. Upon the crossing, pending sell order (sell stop) is placed 10 pips below the signal.

Another 11 orders are then placed below the first order, each in 10 pips increments (10 pips lower than previous one).

Each order has a stop loss of 5 pis and take profit of 10 pips.

 

Buy:

Both RSI (50 and 41) trending above 51 line signalizing predominantly upward market momentum. We enter only long trades.

Signal: Price crossing the lower envelopes line. Upon the cross pending buy order (buy stop) is placed 10 pips above the signal.

Another 11 orders are then placed above the first order, each in 10 pips increments (10 pips higher than previous one).

Each order has a stop loss of 5 pis and take profit of 10 pips.

 

Notes:

Each series of trades (12) remains valid for 48 hours. Meanwhile, we can take another signals.

Strategy uses tight stop loss for each position therefore it is possible to trade it with relatively higher leverage.

We recommend you to use this forex strategy with one of our trusted forex brokers (STP/ECN with MT4 bridge).

To win you must trade with broker on your side.

Dislaimer:  Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer.

TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use. 

 

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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. ” 

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