INTRODUCTION
Why Scalping ?!.. Most trading systems focus on intraday trading or even weekly/swing trading for many different reasons. Mainly because it looks professional and promised profits sound “interesting” especially for new traders looking for as much “pips” as possible. With that in mind, it’s very normal – when you’re searching for a new system – to find that more than 90% of trading systems, free or commercial, are intraday or swing/weekly system and all promise something like 100 - 500 pips per trade. Nothing wrong with that... problem is, most of them either doesn’t work or too complicated to learn and understand. Yes, with the necessary knowledge you can trade any system no matter how complicated it is, but to gain this knowledge it would take years of study and practice plus a lot of money to burn while testing things out. In my opinion, the easiest and shortest path is always the straight line!... traders should only focus on making profits, that’s it and that’s all. That’s why scalping – in my opinion – is the short cut to victory in Forex trading. Scalping focus on one simple thing: Profits. You don’t have to deal with price patterns, candle formations, pivot and Fibonacci formulas, trend lines and support and resistance …etc It’s great if you already know about them but if you don’t, it’s absolutely fine!, believe it or not, with scalping – for few minutes per day – you could make a lot more than a professional trader who’s glued to the chart 24/5 using all indicators he can get, trying to predict price movement. And this is VERY important. You don’t have to be glued to charts 24/5. That means no emotional stress, no irrational decisions, and no unnecessary losing trades. No it’s not the holy grail, and YES you will experience losing trades just like the super trader with PhD degree in technical analysis! … but once you experience a losing trade, you – almost instantly – open another trade, recover the loss in few minutes and move on. While the intraday trader would have to wait at least 12 – 24 hours to get that loss back and get a new signal from his intraday trading system. So what to expect from the Micro Trend Scalper? Expect a simple and very effective scalping system that will help you get as much profits as you can as fast as possible. Now let’s get started…
SYSTEM OVERVIEW
This trading system is based on the core trading principle: buy low and sell high. This principle works in any market and anytime. If you’re trading in stocks, Forex or jeans, the rule of profit is the same: buy low and sell high. The difference between the two is your profit. End of story! This is the most powerful trading rule. With that in mind, you can trade in anything, anytime. And make as much profits as you want. With Micro Trend Scalper we are going to follow this simple rule by using only two indicators, and trading any currency pair, or even stocks or metals, on 1 minute chart: 1 – Stochastic indicator 2 – Fisher Histogram indicator
Please note that you will need Metatrader 4 platform to be able to use the indicators and template. To install the indicator, copy and paste the indicator to : windows/program files/metatrader4/experts/indicators. To install the template, copy and paste the template to : windows/metatrader4/templates. Then restart Metatrader, open 1M chart – any pair – right click on chart and choose: templates >>> micro trend scalper.
SYSTEM RULES
Buy Signal :
1 – Fisher indicator above 0 line ( Red Bar ) 2 – Stochastic indicator ( 12 – 7 – 7 ) between 10 – 30 and starts to trend up
Sell Signal :
1 – Fisher indicator above 0 line ( Light Blue Bar ) 2 – Stochastic Between 70 – 90 and started to trend down
Trading Modes
Safe Trading Mode –Risky Trading Mode
Safe trading Mode:
Target for buy/sell trade >>> 1 – 10 pips Stop loss for buy/sell trade >>> 10 – 25 pips
Risky Trading Mode:
This is only recommended for experienced traders. It’s a very risky strategy and if you’re not experienced enough you may lose more than you should. Target for buy/sell trade >>> 1 – 10 pips per single trade No Stop loss !, instead you will wait for next signal. If next signal was the same as the first one – both sell signals or both buy signals – then open second signal with same lot size as the first trade. Example, first trade was 0.05 sell trade, then lot size for second sell trade should also be 0.05 If the second trade was opposite signal – example, first trade was buy trade and second trade was sell trade – close first trade, then open second trade with DOUBLE lot size. Example: first trade was 0.05 lot sell trade; lot size for second buy trade should be 0.1
I would suggest that you start with the safe mode and try the risk mode on a demo account for few weeks on different pairs in different market conditions.
EXAMPLE
AUD/USD – 1M Chart
Here you will see an example of multiple trades within few minutes to 1 hour range…
All trades – 1, 2, 3, 4 – closed with clear profit of 5 pips. In trade 5 price reversed and I just closed the trade manually ( - 10 pips ) but right after it I opened trade 6 and closed it with 10 pips profit to cover the loss.
The result is 20 pips net profit from 6 trades within few minutes.
EXAMPLE
EUR/USD – 1M Chart In this example, we had multiple trades within few minutes. All closed with profit.
Trades 1 , 2 and 6 were buy trades. While trades 3, 4 and 5 were sell trades. Profit for each trade ranged between 3 – 5 pips. Total profit was 28 pips.
Exact entry/stop and exit point would not be the same as mine if you happened to trade the system at the same moment as I did. And that’s how scalping works. It’s very personal in this matter, but the general trading rules for the system would still be the same so we both would get the same entry points/signals.
The trick with scalping is that you get in and out fast, and repeat! The only thing that you need to do is to avoid news. When there is important economical news, don’t trade. The best time for scalping is when the market is quite. With this system, you don’t have to worry about technical analysis or complicated formulas or calculating pivots or placing Fibonacci levels. It’s so easy that a 5 years old kid can understand it and make money from it. I provided man ways to deal with losing trades because that’s more important than handling winning trades! First method is to close the losing trade manually or when it hits stop loss, and open next trade like nothing happened. Second method is to open next trade with double lot to cover the loss. Third method is to open next trade – same lot size – but this time close with higher profit to cover the loss faster. Practice on demo with each method and use the one you like or the one that fits your trading style or the one you’re getting more profits from. VERY IMPORTANT: Winning Rate with this system is usually more than 90%, it’s very profitable, but it’s not the holy grail. You will experience losing trades and may even end the week/month with negative results. I can’t imagine how that would happen, but it could happen and you must be ready – mentally and emotionally – for it. And most important, you should know exactly what to do when it happens. Keep trading and don’t look back! Never try to predict where the market is going, follow the system blindly and only believe the signals you’re getting from it. Trade only one system at a time and don’t make changes to the system if you don’t know exactly what you’re doing.
Or all you need to do is to use my Trade Alert indicator. It will identify signals automatically for you.
Happy Trading, Matthew Marcus
IMPORTANT DISCLAIMER
U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risks. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING
PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. Hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading.
All information on this website or any e-book purchased from this website is for educational purposes only and is not intended to provide financial advice. Any statement about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold the authors/creators and any authorized distributors of this information harmless in any and all ways. The use of this system constitutes acceptance of our user agreement.