The blackflag scalping FOREX strategy

This a forex strategy that works amazingly well in most of the currency pairs and timeframes. Market in lower timeframes is chaotic, therefore it is better to trade in 15 min charts if you prefer lower timeframes.

 

What you need to know about this forex strategy before you start to read, is that it is ultra agressive, there will be always some trading action going on (especially in lower timeframes). Strategy heavily relies on slight statistical advantage it has in price entry and correct trend identification, therefore there is no point in not taking as many trades as possible.

 

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Each trade is entered at very good price – based on wave geometry of the price. Furthermore, trades are taken in the direction of minor and major trend. Those two thing will provide us with some edge that can be exploited by trading aggressively and with stop loss that equals take profit. We play with the coin rigged in our favor.

 

Used forex indicators

  • Exponential Moving averages (150, 21,7). EMA 150 will help us to identify major trend. EMA 21 and 7 crossovers will provide us with more up to date information on market conditions.

  • Fractals: Fractals will help us to recognize market structure. They will also provide us with target for our profit and specific amount for loss. Each position will separately adjust based on real market conditions that cannot be represented better than with fractals.

 

Forex strategy rules

SELL

 

First thing we need to do is to consider the position of fast pack EMAs (21 and 7) compared to slow EMA 150. If they both trend below the slow Ema. The downtrend is more likely in progress.

 

As a second step we look at the position of EMA 7 relative to EMA 21. It will identify current market momentum, or minor trend if you will. To consider the short entry, EMA 7 must trend below EMA 21.

In trending market – winning trades can be 5 times more likely.

Signal is pretty straightforward: A bearish fractal closes. It means that both candles on its right side are closed. We enter the trade immediately on its close.

  • Stop loss is placed at the fractals base.

  • Take profit equals the distance between SL and entry + 2 pips to cover the costs of transaction.

Rinse an repeat on each fractal while EMAs position remains according to shorting rules.

 

BUY:

 

Both EMA 7 and 21 trends above the slow EMA 150. The uptrend is more likely in progress.

To consider the long entry, EMA 7 must trend above EMA 21.

In chaotic market conditions, strategy is still able to keep its slight statistical edge, and protect profits that are already gained.

Signal: A bullish fractal closes. It means that both candles on its right side are closed. We enter the trade immediately on its close.

  • Stop loss is placed at the fractals base.

  • Take profit equals the distance between SL and entry + 2 pips to cover the costs of transaction.

Notes: Strategy thrives in trending market, bringing win rate close to 90 percent. In absolute mayhem, strategy will produce approximately equal numbers of winners and losers. 2 extra pips on winner will compensate for costs of numerous transaction and strategy will remain break even during such conditions.

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“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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