This is a versatile trading system. It can be used for scalping but also for day trading. It uses trend identification properties of RSI, which also allows for separation of ranging market. Indicators are working in tandem to distinguish trend reversals and avoid market moving sideways. Furthermore, bollinger bands are used to identify relatively high/low price moving in the price tunnel.

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 price is then used for entry timing. Specific rules allow entering the trade in the direction of main trend, consider momentum and range. Then simply picking good enough price for entry. Break even condition is applied and plays a crucial role in reducing the draw down. All those properties of the strategy were proven in historical data test on eurusd tick data since 2003.
Used tools and indicators
Relative strength index (RSI primary period 150, secondary 100) Two indicators are used to consider trends in higher and lower price wave structure. Central zone that can be adjusted (buy above sell below) is applied in both, to allow for range separation.
Bollinger bands (BB period 40, deviation 1). BB tunnel is used to find a good price for entry – picking tops and bottoms. These methods have been applied with success in many trading systems and it works just as well in this one.
Break even condition. After position reaches a certain profit, stop loss is placed on entry price – break even.
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.
Max open trades 5 in test : Allows opening more than one trade on signal per market direction. Increases trade frequency and risk. Also, suitable for more accurate testing.
Forex strategy rules
SELL

Both RSI indicator are trending below their respective sell below zones. Primary RSI below 50 (sell below zone) and secondary- faster, below 45 zone.
This confirms the prevailing downward market direction, we will be looking for short signal.
Signal. Price high reaching above the upper BB. We enter the trade short, on next candle closing below the upper BB.
Stop loss: 80 pips
Take profit: 60 pips
Break even after: omitted in test
BUY

Both RSI indicator are trending above their respective buy above zones. Primary RSI above 50 buy above zone zone) and secondary, above 55 zone.
This confirms the prevailing upward market direction, we will be looking for long signal.
Signal. Price low reaching falling below the bottom BB. We enter the trade long, on next candle closing above the bottom BB.
Stop loss: 80 pips
Take profit: 60 pips
Break even after: omitted in test
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.