There are only a few things in the world that are nicer than watching your account grow every single day. And for some reason I always wanted a scalper that would be able to trade aggressively – and survive in the market. By aggressively I mean thousands of time per year and without a stop loss.
Get MT4 Expert Advisor trading this Forex strategy ↴
Backtest and optimize for any currency pair. Trade multiple instruments simultaneously, day and night.
Trade automatically, without errors and emotions. Save your time and energy.
This type of trading is inherently coupled with risk, that is too much for most of the traders. In recent months I was working diligently to create my pet scalper that would meet my requirements and be able to survive this type of trading by overcompensating for losing positions.
No stop loss scalping
Ability to cover the loss by temporarily increasing its aggressiveness of scalping in the opposite market direction.
The scalper takes small profit of 3 -5 pips multiple times a day using multiple trend confirmation to its advantage. It scalps in the direction of trend. Once the trend changes and a few positions are left opened on the wrong side of the market, scalper needs to be able to overcompensate for the groqing loss (at least partially).
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.
I have tried a couple of different models and I finally came up with simple and yet effective method that is aggressive but not too aggressive at the same time. Strategy considers the amount of position opened in the opposite direction and adjusts the lot size of newly opened position accordingly.
As always we bring you a full strategy together with its rules and expert advisor.
Forex indicators
MACD (moving average convergence divergence) histogram only
Trend filters
5000, 10 000
500,1000
50,100
One of the cornerstones of no stop loss trading is an absolute necessity to avoid fighting trend. Considering the fact that we trade in 1 min timeframe ultra slow MACD is used to identify main driving force in the market.
Entry signal
MACD 12,26,9. With trade entry signal we also consider red signal line. Standard procedure (histogram parting away from signal line) is used.
Candle filter:
To achieve the best possible price candle filter is used. We enter long only on bearish candle and short only on bullish candle close.
Spread filter:
Considering that this is scalping forex strategy. Never enter the trade on spread higher than 0,5 pips. Also, pick a solid ECN broker with low commission costs. This is absolutely crucial for this strategy to work.
Overcompensation model:
When entering the position consider the amount of positions opened in the opposite market direction. Lot size calculation: Number of opened positions in opposite direction*default lot size+default lot size.
Forex strategy rules
Strategy works the best in 1 min timeframe (any major currency pair can be used with adjustments).
SELL
Trend filtering MACDs are all trending below zero line. Downtrend is identified. We enter short trades only.
We check signal MACD (12,26,9). Histogram must trend above zero. We enter the trade short once histogram falls below the red trigger line and bullish candle closes.
Do not forget to consider spread and do not enter the trade on spread higher than 0,5 pips.
Take profit: 3 – 5 pips.
Stop loss: none (Expert includes adjustable stop loss that can be turned off by switching it to 0)
Lot size: Number of opened positions in opposite direction*default lot size+default lot size.
Buy
Trend filtering MACDs are all trending above zero line. Uptrend is identified. We enter long trades only.
We check signal MACD (12,26,9). Histogram must trend below zero. We enter the trade long once histogram rises above the red trigger line and bearish candle closes.
Do not forget to consider spread and do not enter the trade on spread higher than 0,5 pips.
Take profit: 3 – 5 pips.
Stop loss: none (Expert includes adjustable stop loss that can be turned off by switching it to 0)
Lot size: Number of opened positions in opposite direction*default lot size+default lot size.
Notes: Strategy is risky – and that is always a price for constant growth. Drawdowns are common, however they are overcompensated and once price returns to its previous levels, profits can be enjoyed from both market directions.
Expert works for ultra wide variety of settings. Agressivnes can decreased by switching to higher timeframses and manipulating take profit.
Get MT4 expert advisor trading this forex strategy
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.
