Tunnel scalper forex strategy

Strategy was designed for scalping in 15min charts. However, It can be also used with great results across all timeframes. This is proved by our historical data test since 2003 in 1H chart of EURUSD. Results were achieved by strategy simply doing a good job in trend identification and finding a good price for entry.

  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. 

The good price is understood as price at the break (min,max) of a price wave. In other words, strategy goes for tops and bottoms. It does so methodically.

 

One of the ways to identify those tops and bottoms is to use a tunnel. Strategy manages to use BB to identify those price points with high accuracy.

 

The system was tested on high quality historical data on 1H EURUSD (15 min chart doesn't provide as high of an accuracy and test is more time consuming). Following setting have been used.

 

Forex strategy tools and indicators

 

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.

 

MACD Moving average convergence divergence (500,250 and 250,100). We will use two independent MACD histograms. The goal is to identify major trend and confirm it by more recent trend development. This helps to avoid market reversals. We will be looking for entry with confluence with both MACD trends. To use it as a scalping forex strategy requires adjusting the periods of both MACD filters upwards.

 

Bollinger bands (BB period 40, deviation 2). We will be looking for price closing outside of BB tunnel only to close back within with next candle. We enter the trade once the price closes in the tunnel looking for a bounce in the direction of trend.

 

Break even function (40 pips). After strategy reaches predefined profit, stop loss is placed at the price of entry point.

 

Forex strategy rules

 

SELL

 

Both MACD histograms trending below zero. Downtrend confirmed. We will be looking only for short trades.

Signal: Price closing above upper BB line. We will enter trade short on first candle closing back within the tunnel (bellow upper BB).

 

Default point for stop loss placement is close of the last candle above the upper BB. Additional distance of 60 pips is applied to the SL.

 

Take profit: Price touching bottom BB.

 

BUY

 

Both MACD histograms trending above zero. Uptrend confirmed. We will be looking only for long trades.

Signal: Price closing below bottom BB line. We will enter trade long on first candle closing back within the tunnel (above bottom BB).

 

Default point for stop loss placement is close of the last candle below the bottom BB. Additional distance of 60 pips is applied to the SL.

 

Take profit: Price touching upper BB

Get MT4 expert advisor trading this forex strategy

For best results, 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.

 

 

Disclaimer:  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.

 

Please reload

ABOUT US

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. ” 

—  Marian, Proprietor of TheForexkings.com