Hybrid scalping system | Scalping EA download - MT4/MT5 resources
Hello fellow traders!
My name is Jan, I have been trading currencies for 5 months now and I have been trying to test and learn pretty much everything I can find over the past few months (like most of you). After a quick check of different systems (from MA, EA, live indicators, volume, all indicators combined in any possible way from mt4), as well as looking at the most popular systems online, I concluded three systems that, in my opinion, are the most reliable and provide good signals that you can hold as a technical trader.
The core of the system is: Ichimoku, TMS (Simple Trading System), Steven Hopwood 10.2 System and PA (Old Style Candlestick Price Action). Note that before using this system, you must first learn all three systems written above before you can start trading. Just enter any keyword into Google and it will provide you with guidance instantly.
*I do not claim ownership of any of the systems mentioned, all credit goes to the system authors*
***************************************************************************************
Have you ever wondered why these great systems should be modified? Well, just because in my trading experience, making changes here and there to make them more powerful, or in other words, combining some of their features and excluding others, can greatly improve the results.
Here are some of the changes:
-TMS itself is a great system, but the view of price action and S/R levels gets worse after using Haiken Ashi candlesticks or any other simplified candlesticks used with TMS. Yes, they do create less pressure in trading, but they also give weaker signals and greater entry pressure. Probably the biggest advantage of the default Japanese candles is that you get a better, cleaner entry compared to the Haiken Ashi candles because the HA candles are simplified.
-Steven Hopwood The 10.2 system is great, but its peak for me is the 10.2 slope indicator. I have been using this indicator since I started trading and it is certainly one of the best indicators I have ever seen. Only by using this indicator can you use it to determine your tp level. The rest of the indicators for this system are not that useful, which is why I exclude them entirely.
-Ichimoku is a very powerful system, but I discovered two things while testing it. First, you don't need any other wires except the KIJUN wire. Just don't leave it bare with other lines, it will just mess up your diagram. Ichimoku only has two valid signals for this system, one is the cross of kijun and PA and the second is the breakout, now this is important - the breakout price and KIJUN have to be very close for it to be used as a valid signal, the closer they are the better the signal. If the price between clouds is far away from KIJUN, the signal is invalid.
*******************************************************************************************
The main advantage of this system compared to using Aloane's Ichimoku, TMS or PA is that you simply get more signals, better confirmations, and a better idea of how long you should hold your trades.
This system is designed for trading M1 and M5 charts. But any other tf will do too.
System rules:
- Try to get at least two suitable signals when entering the market (e.g. PA and 10.2 Slope Indicator signals)
- The more signals you have on your side, the better the entry will be
TP:
There are many different ways to do this with tp. What I like to do is either use some specific system signals or use resistance or support. What I mean by specific signals is that, for example, you are only looking for the kijun and PA crossover as an exit signal, or you are using the 10.2 Slope Indicator Power as a guide to exit a trade. My favorite is 10.2 exiting transactions with PA support.
Sl:
It is best to use resistance and support + Ichimoku Kijun cross.
Signals to look for using this system:
-Breaking through the Ichimoku Balance Sheet
-Ichimoku Kijun and PA crossover
-PA (all possible PA modes - pinbar, morning star, etc...)
- Oversold or overbought stochastic indicator (especially looking for clean stochastic moves)
-10.2 Bull or Short Power Slope indicator change.
The -10.2 Slope indicator increases the power of bulls or bears.
I created this post just to give back to the community because without it there wouldn't be any progress on my end.
Note that the great thing about this system is that it works on any timeframe, you don't have to use it just for scalping, it works equally well on high timeframes.
Without a doubt, the best currency to trade is EUR/JPY . It has strong liquidity, which is what you need when trading on 1-minute charts. Since the second options GBP/USD and EUR/USD are also good pairs, any other pair is less reliable.
Below is an example trade that could have been made on the 1-minute chart on January 28, 2013 (a randomly selected date).
http://shrani.si/f/30/SZ/2GbsRPgB/ch...stemchart2.png
The green line indicates that the trading day should start at 9:00 GMT. This is certainly what works best for me, but the point here is to try to avoid trading during the Asian session as the signals are much worse during that session.
#1. Buy long at 122.050 after the engulfing bullish candle close. Additionally, the 10.2 slope indicator shows bulls are still in good control, which is good for bulls, and the stochastic indicator just broke above the 20 level and oversold territory, which is also good for bulls. The TDI indicator has crossed bullishly, but please note that this is a very weak crossover. A TDI crossover is only a good sign if the crossover occurs after a longer period of time or a so-called clean sharp crossover.
#2. Exit the long position at 122.155. We have a very clean TDI bearish crossover, the Stochastic is just above the overbought 80 level which is bullish for the bears, and the 10.2 Slope indicator is showing the bulls are cooling off.
Short at 122.155. All previous signals that were good for exiting a long position were actually good signals for entering a short position.
#3. Short exit at 122.100. We have a bullish kijun line crossover, a bullish clean TDI crossover and stochastic oversold. All good long signals and bad signals can still be shorted.
Go long at 122.100. All previous signals explain this.
#4. Exit the long position at 122.163. Stocastic and TDI did not give good signals this time. The power of the 10.2 slope bulls is weakening. When the 10.2 slope indicator shows a power reversal, it is a good signal to start looking for exit or entry. The PA did form a good bearish signal, with two strong body candles that had an upper shadow before but were rejected by resistance, and the bears had a fuller body, signaling a southerly direction.
#5. Go long at 122.040. Clean TDI bullish crossover, stochastically oversold and above the 20 level. In this entry, the 10.2 Slope indicator is moving against us, but note that the color is not yet a strong red, which indicates slow pressure from the bears.
#6. Exit the long position at 122.100. The bears are beginning to apply pressure, which indicates stronger red on the 10.2 Slope indicator. A bearish Ichimoku breakout is a sign that you should always be wary of a bearish breakout, and after a kijun cross with a bearish candle, it is a sign that we should exit defensively.
Short at 122.100. All previous signals point to a strong entry by the bears.
#7. Exit short at 121.750. Pinbar indicates that the downtrend may be over. There is still a lot of pressure on the short side, and it's always a bit risky to enter the market with this kind of pressure. Neither TDI nor stocastic send good signals.
Go long at 121.750. Enter because the downtrend may be ending (pinbar).
#8. Exit the long position at 121.910. Pinbar is forming, which is also a strong signal. Stochastic is additional confirmation when overbought. TDI still shows an upward trend, but in this case we should ignore it.
#9. Go short at 121.89. A two rising wick real body candle confirming the rejection of resistance is a good bearish signal. None of the indicators in this entry are showing a clear picture, which means this trade should be watched closely for any breakouts.
#10. Short exit at 121.81. Stochastically oversold and just above the 20 level, TDI had the appearance of a nice bullish crossover, although it didn't happen that cleanly later on. 10.2 shows that bears are dominant, but not yet strong.
Enter the long position due to all the above signals.
#11. Exit longs at 122.02. PA confirms a full candle, a bullish candle with a wick above it indicates a rejection higher, and a full bear candle indicates a possible move lower. We also had a very clean TDI crossover that randomly passed the 80 level through nice arches after a long period without any crossover.
Short at 122.02. In this case, the 10.2 indicator goes against us, which shows that the bulls are still very strong, and in fact their strength increased after we opened the short position, but all previous signals were strong enough and should be valid entry points. Again, the point of this system is to use some of the most reliable indicators - the system together and select as many suitable signals as possible to decide on an entry.
#12. Short exit at 121.85. After the downtrend, the bullish candle was fully engulfed and the PA signal was good. Very clean bullish TDI crossover, stochastically oversold and rising from the 20 level. 10.2 shows the bears are still applying pressure, but there are more signals for a bullish move.
Enter the long position due to the above signal.
#13. Exit longs at 121.85. This will be breakeven in the long term (regardless of spreads). Full body bear candlestick shows downside trend, clean bearish TDI crossover, stochastically overbought. 10.2 shows an increase in the number of shorts, and there is really no reason to continue long scalping.
Entering a short position due to the above reasons.
#14. Short exit at 121.70. We have a clean TDI bullish crossover, stochastics rising from oversold, a 10.2 slope indicating that the bears are losing power, PA showing a bearish candle with a strong downward wick, and a pretty good full body bullish candle.
For the signal above enter long.
#15. Add a long position. Price is rejected by kijun, PA clearly shows a bullish move as both candles have produced a descending wick in the direction of kijun, a clean TDI crossover is showing, and stochastics are rising from severely oversold.
#16. Exit the long position at 122.000. A full body bearish candle confirms the possibility of a decline. Stochastic is overbought, with 10.2 indicating weak bull strength.
*Following this system, for example a chart above 9:00 -12:00 GMT, it would yield 168 pips (excluding spreads) on the M1 time frame. It was a solid three hours of trading with really good ideas. *
My profit this week was just under 50%, with barely any losing trades.
Here are some examples of trades from this week:
http://shrani.si/f/H/FB/1ab5hxhD/charthybridtrades.png
I will post live trades later.
I'm running the same thread on the Babypips forum and I've also just posted it here so more people can find it.
index:
My name is Jan, I have been trading currencies for 5 months now and I have been trying to test and learn pretty much everything I can find over the past few months (like most of you). After a quick check of different systems (from MA, EA, live indicators, volume, all indicators combined in any possible way from mt4), as well as looking at the most popular systems online, I concluded three systems that, in my opinion, are the most reliable and provide good signals that you can hold as a technical trader.
The core of the system is: Ichimoku, TMS (Simple Trading System), Steven Hopwood 10.2 System and PA (Old Style Candlestick Price Action). Note that before using this system, you must first learn all three systems written above before you can start trading. Just enter any keyword into Google and it will provide you with guidance instantly.
*I do not claim ownership of any of the systems mentioned, all credit goes to the system authors*
***************************************************************************************
Have you ever wondered why these great systems should be modified? Well, just because in my trading experience, making changes here and there to make them more powerful, or in other words, combining some of their features and excluding others, can greatly improve the results.
Here are some of the changes:
-TMS itself is a great system, but the view of price action and S/R levels gets worse after using Haiken Ashi candlesticks or any other simplified candlesticks used with TMS. Yes, they do create less pressure in trading, but they also give weaker signals and greater entry pressure. Probably the biggest advantage of the default Japanese candles is that you get a better, cleaner entry compared to the Haiken Ashi candles because the HA candles are simplified.
-Steven Hopwood The 10.2 system is great, but its peak for me is the 10.2 slope indicator. I have been using this indicator since I started trading and it is certainly one of the best indicators I have ever seen. Only by using this indicator can you use it to determine your tp level. The rest of the indicators for this system are not that useful, which is why I exclude them entirely.
-Ichimoku is a very powerful system, but I discovered two things while testing it. First, you don't need any other wires except the KIJUN wire. Just don't leave it bare with other lines, it will just mess up your diagram. Ichimoku only has two valid signals for this system, one is the cross of kijun and PA and the second is the breakout, now this is important - the breakout price and KIJUN have to be very close for it to be used as a valid signal, the closer they are the better the signal. If the price between clouds is far away from KIJUN, the signal is invalid.
*******************************************************************************************
The main advantage of this system compared to using Aloane's Ichimoku, TMS or PA is that you simply get more signals, better confirmations, and a better idea of how long you should hold your trades.
This system is designed for trading M1 and M5 charts. But any other tf will do too.
System rules:
- Try to get at least two suitable signals when entering the market (e.g. PA and 10.2 Slope Indicator signals)
- The more signals you have on your side, the better the entry will be
TP:
There are many different ways to do this with tp. What I like to do is either use some specific system signals or use resistance or support. What I mean by specific signals is that, for example, you are only looking for the kijun and PA crossover as an exit signal, or you are using the 10.2 Slope Indicator Power as a guide to exit a trade. My favorite is 10.2 exiting transactions with PA support.
Sl:
It is best to use resistance and support + Ichimoku Kijun cross.
Signals to look for using this system:
-Breaking through the Ichimoku Balance Sheet
-Ichimoku Kijun and PA crossover
-PA (all possible PA modes - pinbar, morning star, etc...)
- Oversold or overbought stochastic indicator (especially looking for clean stochastic moves)
-10.2 Bull or Short Power Slope indicator change.
The -10.2 Slope indicator increases the power of bulls or bears.
I created this post just to give back to the community because without it there wouldn't be any progress on my end.
Note that the great thing about this system is that it works on any timeframe, you don't have to use it just for scalping, it works equally well on high timeframes.
Without a doubt, the best currency to trade is EUR/JPY . It has strong liquidity, which is what you need when trading on 1-minute charts. Since the second options GBP/USD and EUR/USD are also good pairs, any other pair is less reliable.
Below is an example trade that could have been made on the 1-minute chart on January 28, 2013 (a randomly selected date).
http://shrani.si/f/30/SZ/2GbsRPgB/ch...stemchart2.png
The green line indicates that the trading day should start at 9:00 GMT. This is certainly what works best for me, but the point here is to try to avoid trading during the Asian session as the signals are much worse during that session.
#1. Buy long at 122.050 after the engulfing bullish candle close. Additionally, the 10.2 slope indicator shows bulls are still in good control, which is good for bulls, and the stochastic indicator just broke above the 20 level and oversold territory, which is also good for bulls. The TDI indicator has crossed bullishly, but please note that this is a very weak crossover. A TDI crossover is only a good sign if the crossover occurs after a longer period of time or a so-called clean sharp crossover.
#2. Exit the long position at 122.155. We have a very clean TDI bearish crossover, the Stochastic is just above the overbought 80 level which is bullish for the bears, and the 10.2 Slope indicator is showing the bulls are cooling off.
Short at 122.155. All previous signals that were good for exiting a long position were actually good signals for entering a short position.
#3. Short exit at 122.100. We have a bullish kijun line crossover, a bullish clean TDI crossover and stochastic oversold. All good long signals and bad signals can still be shorted.
Go long at 122.100. All previous signals explain this.
#4. Exit the long position at 122.163. Stocastic and TDI did not give good signals this time. The power of the 10.2 slope bulls is weakening. When the 10.2 slope indicator shows a power reversal, it is a good signal to start looking for exit or entry. The PA did form a good bearish signal, with two strong body candles that had an upper shadow before but were rejected by resistance, and the bears had a fuller body, signaling a southerly direction.
#5. Go long at 122.040. Clean TDI bullish crossover, stochastically oversold and above the 20 level. In this entry, the 10.2 Slope indicator is moving against us, but note that the color is not yet a strong red, which indicates slow pressure from the bears.
#6. Exit the long position at 122.100. The bears are beginning to apply pressure, which indicates stronger red on the 10.2 Slope indicator. A bearish Ichimoku breakout is a sign that you should always be wary of a bearish breakout, and after a kijun cross with a bearish candle, it is a sign that we should exit defensively.
Short at 122.100. All previous signals point to a strong entry by the bears.
#7. Exit short at 121.750. Pinbar indicates that the downtrend may be over. There is still a lot of pressure on the short side, and it's always a bit risky to enter the market with this kind of pressure. Neither TDI nor stocastic send good signals.
Go long at 121.750. Enter because the downtrend may be ending (pinbar).
#8. Exit the long position at 121.910. Pinbar is forming, which is also a strong signal. Stochastic is additional confirmation when overbought. TDI still shows an upward trend, but in this case we should ignore it.
#9. Go short at 121.89. A two rising wick real body candle confirming the rejection of resistance is a good bearish signal. None of the indicators in this entry are showing a clear picture, which means this trade should be watched closely for any breakouts.
#10. Short exit at 121.81. Stochastically oversold and just above the 20 level, TDI had the appearance of a nice bullish crossover, although it didn't happen that cleanly later on. 10.2 shows that bears are dominant, but not yet strong.
Enter the long position due to all the above signals.
#11. Exit longs at 122.02. PA confirms a full candle, a bullish candle with a wick above it indicates a rejection higher, and a full bear candle indicates a possible move lower. We also had a very clean TDI crossover that randomly passed the 80 level through nice arches after a long period without any crossover.
Short at 122.02. In this case, the 10.2 indicator goes against us, which shows that the bulls are still very strong, and in fact their strength increased after we opened the short position, but all previous signals were strong enough and should be valid entry points. Again, the point of this system is to use some of the most reliable indicators - the system together and select as many suitable signals as possible to decide on an entry.
#12. Short exit at 121.85. After the downtrend, the bullish candle was fully engulfed and the PA signal was good. Very clean bullish TDI crossover, stochastically oversold and rising from the 20 level. 10.2 shows the bears are still applying pressure, but there are more signals for a bullish move.
Enter the long position due to the above signal.
#13. Exit longs at 121.85. This will be breakeven in the long term (regardless of spreads). Full body bear candlestick shows downside trend, clean bearish TDI crossover, stochastically overbought. 10.2 shows an increase in the number of shorts, and there is really no reason to continue long scalping.
Entering a short position due to the above reasons.
#14. Short exit at 121.70. We have a clean TDI bullish crossover, stochastics rising from oversold, a 10.2 slope indicating that the bears are losing power, PA showing a bearish candle with a strong downward wick, and a pretty good full body bullish candle.
For the signal above enter long.
#15. Add a long position. Price is rejected by kijun, PA clearly shows a bullish move as both candles have produced a descending wick in the direction of kijun, a clean TDI crossover is showing, and stochastics are rising from severely oversold.
#16. Exit the long position at 122.000. A full body bearish candle confirms the possibility of a decline. Stochastic is overbought, with 10.2 indicating weak bull strength.
*Following this system, for example a chart above 9:00 -12:00 GMT, it would yield 168 pips (excluding spreads) on the M1 time frame. It was a solid three hours of trading with really good ideas. *
My profit this week was just under 50%, with barely any losing trades.
Here are some examples of trades from this week:
http://shrani.si/f/H/FB/1ab5hxhD/charthybridtrades.png
I will post live trades later.
I'm running the same thread on the Babypips forum and I've also just posted it here so more people can find it.
index:
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