Amherag's Scalping System - MT4/MT5 Resources

Hello everyone,

I just wanted to share a 1 minute scalping system I developed. This is nothing new, probably a lot of people trade in a similar way, and I didn't develop any new indicators or anything like that. In fact, I borrowed some indicators and ideas from other systems.

The purpose of this post is to share my views on the market, how I trade, etc. If you have a "better" system, congratulations!

history

I have tested this system using a real account of Oanda a month with about 20 dlls.

1. The first week I made 28 PIPS. The second week I made 33 PIPS. In the third week I made 54 PIPS. In the fourth week I earned 91 PIPS.
2. My maximum loss on a single trade was 12 PIPS.
3. My highest profit on a single trade is 20 PIPS (this is my take profit in case of severe fluctuations).
4. The average profit on a single trade is approximately 5 PIPS.
5. The average loss on a single trade is approximately 5 PIPS.
6. My biggest loss in a single day was 0.8 PIPS.
7. My highest single-day profit was 28 PIPS.

Basic rules

1. You need a way to find out the direction of the market: uptrend, downtrend, directionless.
2. You need a way to know when it's a good time to enter the market: a low-risk point to maximize profits and minimize losses.
3. You need a way to know when it's a good time to exit the market: when the market is most likely to change direction (stop loss) and when the market is most likely to change direction (take profit).
4. Do not trade more than 50% of your account. If you have 20,000 trades, you can make up to 10,000 trades.

tool

1. 3x ATR (THV4 Information Panel).
   1. It helps us determine the nature of the trend (up or down).
   2. It helps us identify when a trend changes in nature (from top to bottom or vice versa).
   3. It helps us determine our stop loss .

2. Stochastic Oscillator(5,3,3).
   1. It helps us determine when we should enter the market .
   2. It helps us determine when we should exit the market (as Take Profit and sometimes as Stop Loss).

3. Pivot point ( optional , I recommend THV4 TzPivotsD).
   1. It helps us identify key points that should be considered. The explanation is relevant to each individual and is not important to the operation of the system.

4. Rainbow for Linuxtroll (optional).
   1. It helps us understand the market more clearly. The explanation is relevant to each individual and is not important to the operation of the system.

usage

1. First, I recommend that you only trade with 3x ATR over 10 pips . I strongly recommend that you only trade at the beginning of the London session and within 2-3 hours max.
2. Determine the last high or low on the chart. Use the closing price of each period as the "point".
3. Calculate how many points the market has moved up or down from its lowest or highest point to the current price.
4. If the number of PIPS you acquire is greater than your current 3x ATR, and you trade from the bottom , the current market is most likely in an uptrend . If the number of PIPS you acquire is greater than your current 3x ATR, and you trade from the top , the current market is most likely in a downtrend . This satisfies our first basic rule and we have just found the direction of the market .
5. If you are in an uptrend , you need to wait for Stochastic (5,3,3) to reach level 20 to buy . If you are under Trend , you need to wait for Stochastic (5,3,3) to reach level 80 to sell . This fulfills our second basic rule and we have just found a low risk point. Important : You should first check that the market has not changed direction since your last analysis before entering the market, using the procedure explained in the previous step.
6. If you are in an uptrend , calculate the highest point in PIPS since the last market move to the current price. If you are in a downtrend , calculate the market's PIPS low since its move to the current price. Your stop loss will be equal to 3x ATR minus the change you just calculated. This partially fulfills our last basic rule, we have just acquired one of our exit points, which is the stop loss.
7. If you are in an uptrend , once Stochastic (5,3,3) hits level 80 . If you are in a downtrend , once Stochastic (5,3,3) hits level 20 .

Exceptions

Like any system, you should use the sixth sense you develop while trading to predict when it is not appropriate to follow the rules. Here are some examples:

1. You've identified an uptrend. The Stochastic Oscillator has reached the 20 level. You enter the market as a bull. After holding the trade for 5 minutes, you will notice that it has not moved that much. You start to feel that holding the trade is no longer a good idea, so you exit the trade with a profit of 0.5 PIPS.
2. The market began to fluctuate violently. In just 2 minutes, you get about 20 PIPS of movement. This is most likely a downward trend. As your experience tells you, you do not wait for the Stochastic Oscillator to reach the 80 level, you simply enter the market as a short to make a quick profit. You execute an order with a temporary stop loss of 8 PIPS, just because this number makes you feel comfortable, and another order with a temporary stop loss of 10 PIPS, just because this number makes you feel comfortable. Finally, you exit the market with a loss of 5 PIPS.

theory

The following is just my view on the market.

If you buy a market with a take profit of 10 pips and a stop loss of 10 pips, without seeing any charts or knowing anything about the market, you have a 50% chance of winning (forget about the spread , please). But what happens if you know that overall that particular market is declining? Does it sound illogical to change your long position to a short position? Well, I don't know about you, but I'd change my stance.

This means that by understanding the general direction of the market in any way, you can increase your probability of winning at least a little. Suppose now your chance of winning is 60%. This means that if you trade 10 times, you will win 60 PIPS and lose 40 PIPS (using 10 PIPS TP and SL), you are clearly the winner in the long run.

But unfortunately, due to the chaotic nature of the market, this is not enough. Not only do you need to know what the general direction of the market is, you also need to know when the right time is to enter the market. Maybe you are currently in a downtrending market, but entering now will cause you to start losing money. Only after a few trading days will you start to recover from your losses, and after more trading days will you eventually start to make some profits, only to realize that holding the trade is no longer a good idea.

These are my basic principles for making money in the markets (this is nothing new). But I still feel it's important to mention them because I find that a lot of systems forget this.

I have found that successful systems follow these basic principles. An example is the THV system (an excellent system by the way). If you know how to trade with it, you will know that they use coral to understand the general direction of the market. Additionally, you'll also know that it uses TRIX to know when to enter/exit trades at low-risk points.

But what I like about my system is that I (think) find the flaws in most successful systems. Assume your system contains the following metrics:

ADX - Find the direction.
Awesome Oscillator - Entry
RSI - avoid trading
EMA(20) - Stop Loss Pivot Point - Take Profit

This example is a bit exaggerated, but it could be this complicated. What I want everyone to note is that in this system, you use one metric to accomplish one task, rather than one metric to accomplish multiple tasks. I believe that if you can accomplish each of the basic rules of a successful system using a very small number of metrics, the system will run better. The reason behind this is, to return to our example, when Welles Wilder created ADX, he had no idea that it would work with the Awesome Oscillator created by Bill Williams. It's like having a car with parts from different manufacturers. It might work, but the likelihood of failure increases.

What I like about my system is that you can only use 3x ATR and stochastics to determine all the pieces you need for a successful system. have a look:

1. Determine direction: 3x ATR
2. Avoid Sideways Markets: 3x ATR + Stochastic Oscillator (Try using my system to trade sideways markets. You will rarely make a trade because one trade cancels another. Once the Stochastic gives you a trade signal, you will notice that the trend has changed by checking 3x ATR, forcing you to wait for the next Stochastic signal)
3. Definite Stop Loss: 3x ATR / Random
4. Determine take profit: random
5. Avoid trading: 3x ATR

harmonious

Final note

1. If you don't like it, don't trade.
2. If you reply to an offensive post, I will simply ignore you.
3. If you reply to a constructive post, I will try my best to reply.
4. You can find indicators and templates at the end of the post.
5. Indicators with THV in the file name obviously come from the THV system.
6. Thanks to Linuxtroll and 4xq for providing the topic on Linuxtroll Rainbow.
7. Thanks to Cobra and all his staff for a great THV system.