Ichimoku based scalping forex strategy, that is versatile enough to be used also as a day trading system. Candle based signal provides simple, robust and quite accurate market entry that is protected by stop loss (trailing) at all times. Strategy was tested for profitability on historical data since 2003, with positive results.
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.
Low draw down for most of the settings' combination, allows using higher leverage. Therefore, same results can be obtained with few trades compared to other profitable scalping forex strategies.
We bring you this free scalping forex strategy together with expert advisor allowing you to test it properly for your preferred currency pair and timeframe. It can work anywhere between 5 min to daily chart (with adequate adjustment in settings). We have tested it for profitability on 1H chart of EURUSD, since 2003.
Used tools and indicators
Ichimoku kinko hyo (90,260,520): complex tool for trend identification developed by Japanese experts. Works reliably when it comes to trend identification. Entry becomes easy.
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.
Big candle overcome signal (40 to 150 pips): Candle with defined body range, surpassing previous candle in the direction of trend. We enter the trade in the direction of candle close.
Trailing stop (advanced, extra deviation of 20 pips applied). Placed above the high/ below the low of our signal candle initially. Adjusted with each following candle close, only in the direction of profitable trade.
Take profit: 30 pips in test
Forex strategy rules
SELL
Ichimoku trend identification:
The upper cloud edge, consisting of span B / A line is above the price.
Span B line is above the span A line.
Kijun sen (blue) trends above tenkan sen (red line).
All of those three conditions must be met to confirm the downtrend and allow for short entry
We look for big signal candle (40 to 150 pips) closing below the low of previous candle. We enter the trade on signal candle close.
Trailing stop is placed at the high of signal candle + extra deviation of pips (to cover the market volatility).
If you decide to use this strategy as a scalper, apply take profit of: 10 – 30 pips.
BUY
Ichimoku trend identification:
The upper cloud edge, consisting of span B / A line is below the price.
Span B line is below the span A line.
Kijun sen (blue) trends below tenkan sen (red line).
All of those three conditions must be met to confirm the uptrend and allow for long entry
We look for big signal candle (40 to 150 pips) closing above the high of previous candle. We enter the trade on signal candle close.
Trailing stop is placed at the low of signal candle - extra deviation of pips (to cover the market volatility).
If you decide to use this strategy as a scalper, apply take profit of: 10 – 30 pips.
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.
