Scalping 1 min EU – Forex Trading System

What is Scalping?

Scalpers attempt to act like traditional market makers or specialists. To make the spread means to buy at the Bid price and sell at the Ask price, to gain the bid/ask difference. This procedure allows for profit even when the bid and ask don’t move at all, as long as there are traders who are willing to take market prices. It normally involves establishing and liquidating a position quickly, usually within minutes or even seconds.

The role of a scalper is actually the role of market makers or specialists who are to maintain the liquidity and order flow of a product of a market. – wikipedia.org

How does this strategy work and how do you use it?
(Scalping 1 min EU)

The strategy long rules

1) the low of the current candle is lower than the lower bollingerband (deviation 1)
AND
2) the Fast Stochastics (line D) is lower than 19
AND
3) if you look back their is a candle with a close at least 5 pips lower than the current candle

The strategy short Rules

1) the high of the current candle is higher than the upper bollingerband (deviation 1)
AND
2) the Fast Stochastics (line D) is higher than 81
AND
3) if you look back their is a candle with a close at least 5 pips higher than the current candle

The strategy closes a long when

1)  the high of the candle is above the upper bollingerband (deviation 2!)
2)  the open P/L > 8000 X (distance between the upper band and lower band) X number of mini lots
3) the open P/L is bigger than  MaxLoss X number of mini lots.

The strategy closes a short when

1)  the low of the candle is beneath the lower bollingerband (deviation 2!)
2)  the open P/L > 8000 X (distance between the upper band and lower band) X number of mini lots
3) the open P/L is bigger than  MaxLoss X number of mini lots

This strategy is written for mini lots (10.000) AND charts with 5 digits after the comma!!!!
Open EU timeframe 1 min. Attach the strategy to the timeframe. Then optimize the parameters:
h1=6 => The starting hour when the strategy is allowed to take a position
h2=23 => The latest hour when the strategy is allowed to take a position
So for above example strategy can take a position from 6 AM to 23 PM
MaxLoss=50 => The maximum allowed loss in case you use 1 mini lot
minilots=1 => The number of mini lots the strategy uses
So if you put 2 minilots, maxloss will be MaxLoss * 2
offset=1 => The level for the Fast Stochastics
offset =1 gives 81 and 19
offert =2 gives 82 and 18

or

offset=-1 gives 79 and 21
check=40 => the number of candles the strategy has to look back to find a lower or higher
Before using this strategy you must play with the paramters until you get a setting that gives you a positive backtest. This way the strategy is optimized for the current market conditions. Test shows that this strategy works pretty well under certain market conditions. Under no conditions i advice any live trading of course but you are free to test this strategy under a DEMO account.

The code:

strategy scalper;

/*Warning for demonstration purpose only, no live trading please*/
/*you can freely copy the code but plz leave this header*/

input h1=6,h2=23,MaxLoss=25, minilots = 1,offset=1,check=40;
vars currentbar = 1,stoch1min(series),t=0,t1=0,t2=0,longallowed(bool),shortallowed(bool),i(number);
begin
currentbar := back(close);
if currentbar < check then return;

Fast_Stochastics(close,5,3);

stoch1min:=Fast_Stochastics.line_d;

t:=hour(timestamp[currentbar])*60;
t1:=h1*60;
t2:=h2*60;

longallowed:=false;
shortallowed:=false;
Bollinger_Bands(close,20,1);
if t>=t1 and t<=t2 and stoch1min[currentbar]< (20-offset) and low[currentbar]

begin
for i:=1 to check do
begin
if close[currentbar-5-i]<(close[currentbar]-0.0005) then longallowed:=true;
end;
if longallowed=true then

begin
buy(minilots);
end;
end;

if t>=t1 and t<=t2 and stoch1min[currentbar]> (80+offset) and high[currentbar]>Bollinger_Bands.line_upper[currentbar] and not short() and not long()then

begin
for i:=1 to check do
begin
if close[currentbar-5-i]>(close[currentbar]+0.0005) then shortallowed:=true;
end;
if shortallowed=true then

begin
sell(minilots);
end;
end;

Bollinger_Bands(close,20,2);
if short() and low[currentbar] if long() and high[currentbar]>Bollinger_Bands.line_upper[currentbar] then exitlong();

Bollinger_Bands(close,20,2);
if fpl()<-8000*minilots*(Bollinger_Bands.line_upper[currentbar]-Bollinger_Bands.line_lower[currentbar]) then
begin
if long() then begin alert("text","fpl BBS"); exitlong(); end;
if short() then begin alert("text","fpl BBS"); exitshort(); end;
end;

if fpl()<-MaxLoss*minilots then
begin
if long() then begin alert("text","max loss"); exitlong(); end;
if short() then begin alert("text","max loss"); exitshort(); end;
end;

end.

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