2 Bar Reversal Scalp | Scalping EA download - MT4/MT5 resources
Just posted this idea for a trading system in a coding forum, but thought it would be worth starting a new thread as well to see if anyone was interested. This is a simple, well-known reversal, using my own money management rules and take profit and stop loss levels. Now I just want to follow the rules and talk about the rules. (I've looked into other TP and SL ideas, but they can wait again).
I've only seen GJ. 15 minute time frame.
This is the 2-column inversion scalp idea. We need to identify bar 1 and bar 2. For buying, B1 must be a bearish bar. B2, the next bar, must be a bullish bar and must be the lowest of the last 5 bars. Furthermore, its high price must be lower than B1's high price (ie, not the outer bar). The buy entry will then be placed at the high of B1. If the third consecutive bar after B2 is not triggered at the close, the order will be canceled. Risk 2%. Stop loss is set at the close of B1. Shorting is the opposite of the above (i.e. B1 is a bullish bar, the entry is at the low of B1, and we use the difference between the low of B1 and the close of B1 as our pip risk)
The risk point is the difference between the lowest price of B1 and the closing price of B1. So now set the TP to 1:1 with a gain or loss of 2%.
You can see in each example below that bar 2 forms the highest or lowest point of the last 5 bars and is a reversal of B1 and does not exceed B1. In the example of the triggered trade, they triggered the trade within 3 bars of bar 2.
There will be losses in this system, but I expect there will be more winners...
If it can be coded, thank you very much in advance I haven't done live trading yet, just an idea at the moment. If it proves beyond a doubt that a fixed TP of 5 pips for a 2% gain is more profitable in the long run than a safer 2% 1:1 regardless of the stop loss size, then I would move to that.
I've only seen GJ. 15 minute time frame.
This is the 2-column inversion scalp idea. We need to identify bar 1 and bar 2. For buying, B1 must be a bearish bar. B2, the next bar, must be a bullish bar and must be the lowest of the last 5 bars. Furthermore, its high price must be lower than B1's high price (ie, not the outer bar). The buy entry will then be placed at the high of B1. If the third consecutive bar after B2 is not triggered at the close, the order will be canceled. Risk 2%. Stop loss is set at the close of B1. Shorting is the opposite of the above (i.e. B1 is a bullish bar, the entry is at the low of B1, and we use the difference between the low of B1 and the close of B1 as our pip risk)
The risk point is the difference between the lowest price of B1 and the closing price of B1. So now set the TP to 1:1 with a gain or loss of 2%.
You can see in each example below that bar 2 forms the highest or lowest point of the last 5 bars and is a reversal of B1 and does not exceed B1. In the example of the triggered trade, they triggered the trade within 3 bars of bar 2.
There will be losses in this system, but I expect there will be more winners...
If it can be coded, thank you very much in advance I haven't done live trading yet, just an idea at the moment. If it proves beyond a doubt that a fixed TP of 5 pips for a 2% gain is more profitable in the long run than a safer 2% 1:1 regardless of the stop loss size, then I would move to that.
📦 Summary of post attachments (2)
Below are all the files (2) shared in the reply.
💡 Featured Recommendations
✍️ Latest by the author
- •
- •
- •
- •
- •
- •
📌 Popular topics
- •
- •
- •
- •
- •
- •
- •
- •
🔗 You May Be Interested In
- •
- •
- •
- •
- •
- •