Three Bar Scalp Method w Probability
I quickly whipped up a system. I got some ideas from various places on the forum and did some calculations and it looks really promising.
So set.
RSI(8)
ATR(14)
Go Long: Enter when the last open had a higher close than the previous bar's close, and the open and close were at the same level. RSI(8) is above 50.
Short-term exit: end of day.
SL: 25% of ATR(14)
Shorting: Entering a trade on an open with a lower closing price than the previous bar's closing price, and with the opening and closing prices at the same level. RSI(8) is below 50.
Short-term exit: end of day.
SL: 25% of ATR(14)
I included some calculations in Excel, but it doesn't account for sawing.
reason.
Looking at the past 7 years, the probability of Gu's third bar (trading day) closing higher is 62.77%, and the probability of the third bar closing lower is 60.53%.
Any comments?
ps: This post will probably disappear soon, I'm just curious about your opinion.
ps: English is not my native language so sorry for the mistakes
EDIT: The zip file contains an Excel sheet containing the calculation results.
EDIT: Clarification: We open the third bar when bar 2 closes above bar 1 and the RSI(8) is above 50. Short is the opposite.
edit:
So set.
RSI(8)
ATR(14)
Go Long: Enter when the last open had a higher close than the previous bar's close, and the open and close were at the same level. RSI(8) is above 50.
Short-term exit: end of day.
SL: 25% of ATR(14)
Shorting: Entering a trade on an open with a lower closing price than the previous bar's closing price, and with the opening and closing prices at the same level. RSI(8) is below 50.
Short-term exit: end of day.
SL: 25% of ATR(14)
I included some calculations in Excel, but it doesn't account for sawing.
reason.
Looking at the past 7 years, the probability of Gu's third bar (trading day) closing higher is 62.77%, and the probability of the third bar closing lower is 60.53%.
Any comments?
ps: This post will probably disappear soon, I'm just curious about your opinion.
ps: English is not my native language so sorry for the mistakes
EDIT: The zip file contains an Excel sheet containing the calculation results.
EDIT: Clarification: We open the third bar when bar 2 closes above bar 1 and the RSI(8) is above 50. Short is the opposite.
edit:
Method changes:
Pull to breakeven SL when 25% of ATR(14) is in gain.
Use 3 units.
Exit unit 1 when 50% of ATR(14) is reached.
At the end of the day, if there is no profit, exit unit 2 until BE or SL is reached.
If the opening signal on the next candle is positive, keep unit 3 and move the stop to breakeven and start again with an additional 3 units.
Greetings Brock


















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