Simple Scalping Idea | Scalping EA Download - MT4/MT5 Resources

Following Geoff's excellent post http://www.forexfactory.com/showthread.php?t=231650 this gave me an idea for a quick scalp trade. I've noticed that many posts on FF/EA generally recommend avoiding times with big news. I completely agree, but what is sometimes missed is that you may open a position when there is no news, but if the position remains open for a period of time, your position is exposed to various events/news while it is open. Therefore, I have been looking for a tool that can take a few pips at a time (maybe 2 or 3 times a day) on each currency. Over time, this compounding effect should lead to significant profits.

For fear of getting shot down, I'd like to suggest the following, something I noticed while using Geoff's EA.

Once the price closes above the SMA (setting = 10) on the 1 hour chart, there seems to be an opportunity to gain at least a few pips. I think it's only 2 or 3 pips (20 or 30 pips for 5 digits), although you could close half of the position at that amount and see how the rest turns out. It looks like this crossover may happen 2 to 3 times a day. If we combine this with Steve Hopwood's multi-pair trading EA approach, the daily pips can add up to quite a lot. Even if we earn 50 to 100 points per week, the compounding effect will lead to significant profits over time. By only looking for a few points at a time, this will hopefully mean that we won't be in the market for too long and therefore won't be affected by sudden news events or movements that go against our positions. I have no use for coding, but looking back at the diagram this does look doable. Not sure about the stop loss, although I've tried a few trades with a 15 pip stop loss, it's not really needed.

Jeff, I've pitched this idea to you and I'd really appreciate it if you could consider writing some code when you have some time. My current thoughts on the input that might be needed are

1. batch size
2. Currency traded
3. Maximum spreads or specific trading hours to avoid high price spreads such as night GU
4. TP (point)
5. Stop loss point (point)
6. Partially closed
7. BE
8. jump stop

In my manual testing, the last three I have been using Steve's Multipurpose Trade Management EA so people can use it as it is a very powerful suite.

Another option is to set a minimum distance between the open and close (or high and low) prices of candles that cross the SMA. I mention this because I have seen some charts where the previous candle was very small and could have resulted in losses. I'm looking for a sizable price change to indicate that the SMA crossover has some momentum.

I appreciate anyone's thoughts on this.