hello, i have recently invented this simple simple scalping system, that i have only used on the eur/usd 5min chart.
INDICATORS:
macd histogram: default setting with line drawn at 0, +.0002, -.0002
Zero Lag Stochastic[ZLS], Setting are: smoothing:2 Timeframe:5 [i dont think the timeframe setting really does anything, but i use it on 5 anyways] and horizontal lines at: 20, 50 and 80
(Optional) moving averages: 21 , 50 EMA this is not officially part of the system, i am testing them to see how they work as a filter to take trades only in direction they are indicating...whatever side the 21ema is on, of the 50 ema that is the direction we are lookin for trades, it has been successful but i have not officially made it a part of the system as i said before.
SIGNALS
we are looking for the MACD and ZLS (zero lag Stochastic) to be in agreement, it is kind of hard to explain what we are looking for in the ZLS, the concept is simple but it is hard to put it into words so bare with me.
for a long signal what we want is for the macd to be above zero, and the short stochastic line to be above the long ZLS line (white above red) we then want there to be a cross over in the ZLS white crossing below red, and then, when it crosses back up (white above red) the Macd must have stayed above the -.0002 the whole time the White ZLS line was below red (sometimes the signal is stronger if the macd stayed above zero, but using the -.ooo2 ls fine.)
IF THE FINAL CROSS THAT GIVES THE LONG SIGNAL IS ABOVE 80 DISREGARD THE SIGNAL.
what this shows us is that the market tryed to move down but there was toomuch strength, and it was unable to go down any with any force and it was then repeled by the bulls and slingshoted up.
as soon as you get a close of a candle with some white line above the redline in the ZLS, and the macd histogram was above -.0002 the entire time you buy long on the next candle.
for long signals everything is the same but reversed.
and the macd must stay below the +.0002
also if you like you can use a 21 and 50 ema as a filter, if 21 above 50 only take long signals if 50 above 21 only take short signals. this is not officially part of the system, as i am still testing it, but i has had mixed results so far. today it would have kept me out of three trades. one i lost 10 pips, one i made 1 pip and another i made +15 pips.
so you can test it youself as i continue to0 and mabye we can come to a descision on it or find a better filter.
i would like to improve on this sysem with ForexFactroy, but i also want to KISS keep. it .simple. stupid.
for money management, i use a 10 pip stoploss ( i am concidering using 10 + spread which for me would be a 12 pip sl on eurusd, but for the timebeing i am sticking with 10) and
i get to +4 i set to break even.
+5 i set to b/e+1
+8 b/e+2
+10 be+3
+15 be+6
+18 be+8
+20 be+10 and keep going in this fashion till i get to be+ 15 then i set the trailing stop (15 pips away is the minimum) and i leave it till i get stopped out or i see something that makes me want to sell such as a ZLS cross in the opposite direcition
DOES ANYONE ELSE HAVE ANY IDEAS FOR A SL PLAN I AM NOT VERY CONFIDANT IN IT.
any questoins or comments feel free to ask, i am posting today's day of trades. the arrows show the directon that the trades were taken, green line means profitable, red means unprofitable and white means breakeven or didnt take teh trade because the signal was given in the no trade zone (above 80 or below 20)
thanks and enjoy.
INDICATORS:
macd histogram: default setting with line drawn at 0, +.0002, -.0002
Zero Lag Stochastic[ZLS], Setting are: smoothing:2 Timeframe:5 [i dont think the timeframe setting really does anything, but i use it on 5 anyways] and horizontal lines at: 20, 50 and 80
(Optional) moving averages: 21 , 50 EMA this is not officially part of the system, i am testing them to see how they work as a filter to take trades only in direction they are indicating...whatever side the 21ema is on, of the 50 ema that is the direction we are lookin for trades, it has been successful but i have not officially made it a part of the system as i said before.
SIGNALS
we are looking for the MACD and ZLS (zero lag Stochastic) to be in agreement, it is kind of hard to explain what we are looking for in the ZLS, the concept is simple but it is hard to put it into words so bare with me.
for a long signal what we want is for the macd to be above zero, and the short stochastic line to be above the long ZLS line (white above red) we then want there to be a cross over in the ZLS white crossing below red, and then, when it crosses back up (white above red) the Macd must have stayed above the -.0002 the whole time the White ZLS line was below red (sometimes the signal is stronger if the macd stayed above zero, but using the -.ooo2 ls fine.)
IF THE FINAL CROSS THAT GIVES THE LONG SIGNAL IS ABOVE 80 DISREGARD THE SIGNAL.
what this shows us is that the market tryed to move down but there was toomuch strength, and it was unable to go down any with any force and it was then repeled by the bulls and slingshoted up.
as soon as you get a close of a candle with some white line above the redline in the ZLS, and the macd histogram was above -.0002 the entire time you buy long on the next candle.
for long signals everything is the same but reversed.
and the macd must stay below the +.0002
also if you like you can use a 21 and 50 ema as a filter, if 21 above 50 only take long signals if 50 above 21 only take short signals. this is not officially part of the system, as i am still testing it, but i has had mixed results so far. today it would have kept me out of three trades. one i lost 10 pips, one i made 1 pip and another i made +15 pips.
so you can test it youself as i continue to0 and mabye we can come to a descision on it or find a better filter.
i would like to improve on this sysem with ForexFactroy, but i also want to KISS keep. it .simple. stupid.
for money management, i use a 10 pip stoploss ( i am concidering using 10 + spread which for me would be a 12 pip sl on eurusd, but for the timebeing i am sticking with 10) and
i get to +4 i set to break even.
+5 i set to b/e+1
+8 b/e+2
+10 be+3
+15 be+6
+18 be+8
+20 be+10 and keep going in this fashion till i get to be+ 15 then i set the trailing stop (15 pips away is the minimum) and i leave it till i get stopped out or i see something that makes me want to sell such as a ZLS cross in the opposite direcition
DOES ANYONE ELSE HAVE ANY IDEAS FOR A SL PLAN I AM NOT VERY CONFIDANT IN IT.
any questoins or comments feel free to ask, i am posting today's day of trades. the arrows show the directon that the trades were taken, green line means profitable, red means unprofitable and white means breakeven or didnt take teh trade because the signal was given in the no trade zone (above 80 or below 20)
thanks and enjoy.