Alligator bounce scalping forex strategy

This forex strategy, can take 1000 USD and turn it into 40 000 USD in about 13 years, using the same lot size for every single trade. Every single trade is also protected with tunnel based trailing stop. TS is getting tighter and tighter as the trade progresses in green numbers. This trading system can be also used a scalper in lower time frames, but more preferably as a main day trading system.

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Strategy is more complex. It combines the main advantages you can realistically get in your trading on forex. Namely,: Trading in the direction of trend. Entering the trend on relatively good price (picking tops and bottoms), considering volume spread analysis logic (activity of smart money), smart position management and multiple entry.

 

The system was tested on tick historical data of EURUSD since 2003, creating some of the best results we have ever seen using out testing methodology. The system comes with the expert advisor.

 

Used tools and indicators

Alligator forex indicator (600,400,250). All lines must be aligned according to the trend. All trades will be taken only in that direction. Two slower lines are proficient in main trend identification. The fastest works very well in helping us avoid trading too long into market turnovers. Modify alligator jaws, lips and teeth to modulate its sensitivity and adjust it to different time frames and currency pairs.

 

Bollinger bands (BB period 40, deviation 1). The main signal. We will be looking for price moving outside the tunnel only to close back within with specific volume formation.

 

Volumes. Volumes are used as part of VSA (volume spread analysis). In forex they are far from accurate and may vary from broker to broker. Therefore, use trusted forex broker. Anyway, the volumes provide statistical edge in our entry that may add 0,40 USD to profit factor. And that is amazing. Same profitable forex strategies without volumes confirmation are often becoming untradeable.

 

Trailing stop (extra deviation 90): Trailing stop is based on Bollinger bands tunnel. Extra distance may be applied. We do not want it to be triggered with next bounce or price spike. It applies for every opened trade universally.

 

Max open trades (11 in test): This forex strategy allows opening multiple trades in one direction. When you allow opening more than one trades, strategy requires more margin and is getting more risky.

 

Forex strategy rules

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.

 

SELL

All alligator lines aligned according to downtrend. (slowest at the top, fastest at the bottom).

We will be looking for price to penetrate upper BB only to close back within the tunnel. This happens on specific volume.

Volume of the candle that penetrates the tunnel is low that the volume of previous candle (volumes gets the lower as the price approaches tunnel resistance).

 

Volume on the candle that closes back within the tunnel is higher that the volume of previous candle (Bounce is confirmed by growing activity, this also signalizes no interest in the breakout)

We enter on first candle closing within the tunnel.

 

Trailing stop is place according to upper BB and extra distance is applied (90 pips).

Trailing stop is the only method of position closing

There are no restriction on opening the short trades (if trade exists) other than the user defined MAX open trades.

 

BUY

All alligator lines aligned according to uptrend. (fastest at the top, slowest at the bottom).

We will be looking for price to penetrate bottom BB only to close back within the tunnel. This happens on specific volume.

Volume of the candle that penetrates the tunnel is lower that the volume of previous candle (volumes gets the lower as the price approaches tunnel support).

 

Volume on the candle that closes back within the tunnel is higher that the volume of previous candle (Bounce is confirmed by growing activity, this also signalizes no interest in the breakout)

We enter on first candle closing within the tunnel.

 

Trailing stop is place according to bottom BB and extra distance is applied below (90 pips).

Trailing stop is the only method of position closing

There are no restriction on opening the long trades (if trade exists) other than the user defined MAX open trades.

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.

 

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“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. ” 

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