Megascalping using the Principle of Grebenshikov

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.  

Post a Comment

Previous Post Next Post