This strategy uses the Grebenshikov
principle, as detailed in ‘Forex and We’. This strategy is
actually closer to Megascalping in size. Megascalping using the
Grebenshikov principle uses the EUR/USD currency pair as its main
instrument; different currency pairs can be used. Look for a
trustworthy Forex broker that offers the Metatrader 4 trading
platform in order to use this Forex scalping strategy. Description of
the Forex Trading Strategy Use the Bollinger indicator that all
trading platforms, including Metatrader 4, will have to enter the
market. Should the Bollinger indicator show parallel lines, Buy stop
and Sell stop orders should be placed 20 pips above and below the
borders of the horizontal channel accordingly. Any timeframe can be
used. Before placing pending orders, it is sensible to perform
technical analysis using higher timeframes. As an example, using H1
to place orders, D1 should be looked at beforehand. Were the price to
be next to the upper channel border using the day timeframe, we place
only the Buy stop (and the opposite for Sell stop). A stop-loss can
be placed 20 points below the opposite channel border.
Transaction Support According to the
Trading Strategy There are two scenarios once the pending order has
been activated:
a) There is an unprofitable transaction
or it does show a profit, but less than 25 points that closes on stop
loss. Here, once there is trend reversal, the sell stop order has
been placed using the same principle as buy order previously. I.e. a
long transaction closes on stop loss and a short position is then
immediately opened. This will also have these same two scenarios. b)
There is immediate profit with the opened transaction. Once the
25-point barrier has passed, the transaction moves to break-even.
Should price continue to go in the right direction, trailing stop is
used. When opening up further positions, pending orders are placed 20
points above the maximums using the 4-hour chart. Orders are to be
placed following the summary stop for all positions in a “positive”
area or in a breakeven position. This is a safety measure as the
Forex exchange market is volatile. There is another possible variant
in that there is just one opened transaction that moves to break-even
once it gets to at least 25 pips. Stop-loss or trailing-stop are when
profit taking occurs. Lastly, due to the complexity of forex
exchange, it is essential to have a thorough and clear trading
strategy in order to trade forex.
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