This is a scalping forex strategy developed by theforexkings.com. It offers a complete solution for liquidation of scalping position (or any other type of position). Averaging is used as it is supposed to be used – as a method of getting a better price. No predetermined stop loss is used, however positions are liquidated according to moving average as soon as necessary even at loss.
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Liquidation model includes improving the average entry price and then liquidating it at best possible average price at opposite range of the spectrum and literally at moving average.After running countless test it is clear, that this model for position liquidation is viable and can be applied almost universally across all timeframes and currency pairs. Of course adjustment for each scenario are necessary. Therefore, we provide you with expert advisor.
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MACD (moving average convergence divergence) Indicator is used to identify long term trend. In 1 hour chart we prefer to use 250,500,9 settings. Increase the values when switching to lower timeframes and decrease it when going to the higher timeframes. For example use 500,1000,9 setting in 30 min charts and 50,100,9 when switching to 4 h charts. But this entirely depend on other strategy settings and your own goals.
Envelopes: Period 60 applied with deviation 0,2 in 1H chart.
Forex strategy rules
MACD histogram closing below zero – signalizing downtrend in our chosen timeframe. We will enter, and average only short trades.
Signal: Price closing above upper envelopes line. We enter on each candle close above upper envelopes line.
Stop loss and take profit. Price closing below bottom envelopes line (moving average applied on price low).
We open as many short positions as we receive signal for. Then we liquidate all of them at low price marked by bottom envelopes line !
MACD histogram closing above zero – signalizing uptrend in our chosen timeframe. We will enter, and average, only long trades.
Signal: Price closing below bottom envelopes line. We enter on each candle close below bottom envelopes line.
Stop loss and take profit. Price closing above upper envelopes line (moving average applied on price high).
We open as many long positions as we receive signal for. Then we liquidate all of them at high price marked by upper envelopes line !
Notes: As you can see this position liquidation model, takes advantage of price fluctuating above and below its average value. Only complication with this type of model is the necessity to manage many position simultaneously. Therefore, expert advisor is provided by theforexkings.com.
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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.