by killzone: Seeing some nice scalpers here I decided to share mine. It based solely on moving averages, and additional zones. Position management is advanced and uses partial averaging. This practically equals very high win rate. If you don't get a good price for a first time you will create a better overall price for yourself. You will love it !
Used forex indicators
EMA (exponential moving averages) 50 and 100. Add additional lines to EMA 50. (100,-100,200-200,350,-350) Make them red for clearer visibility. Apply both indicators in the 5 min chart of any low spread currency pair.
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Forex strategy rules
BUY:
EMA 50 trends above EMA 100. Uptrend. We will enter long trades only.
Enter the first long trade upon price touching the -100 line (first red line below EMA 50). Enter the trade with 1X lot size (based on your account size).
Take profit: +100 line position upon the entry.
First Position moves to loss:
Enter the second trade with 2xlot size on price touching the -200 line. Take profit: Position of 100 line upon entry to the second trade for both opened long positions.
Second position moves to loss.
Enter the third trade with 4xlot size on price touching the -350 line. Take profit: Position of 100 line upon entry to the third trade for all opened long positions.
SELL:
EMA 50 trends below EMA 100. Uptrend. We will enter short trades only.
Enter the first short trade upon price touching the 100 line (first red line above EMA 50).
Take profit: -100 line position upon the entry.
First Position moves to loss:
Enter the second trade price touching the 200 line. Take profit: Position of -100 line upon entry to the second trade, for both opened short positions.
Second position moves to loss.
Enter the third trade on price touching the 350 line. Take profit: Position of -100 line upon entry to the third trade for all opened short positions.
Notes:
Mark the position of profit targets at the moment of entry. You need to consider the fact that opposing EMA line will move together with price and therefore you need to consider its position while you enter the trade.
How to deal with loss.
Once the EMA crossover appears start to trade in the opposing direction. I prefer not to liquidate positions that are in loss. You will be trading in the direction of trend and most of the time you can compensate for loss by simply continuing to trade in the new market direction.
This strategy as you can see does not accept loss. However unlike some averaging forex strategies, it does not fight the trend and that's what enables it to survive and thrive in the market. You just need to make sure that you have sufficient capital for the cases that trade moves against you.
