Hello again, dear visitors and blog readers Deipara.com! The topic of our new article will become a scalping strategy, based on the testimony MACD and PARABOLIC. Looking in advance, I want to note that this tactic of trading is really interesting and worthy of Your attention.
I found her on one of the forums that visually I really liked, and I decided to test it, however, on history. Overall, if you correctly follow the rules of the system, you can get very good profit .
In addition, it is possible to note its simplicity, as it uses only two indicators of technical analysis, respectively, of the new traders without much effort you will master this tactic from the first days of acquaintance with her.
Description of the strategy
As I said earlier, the main requirement of the strategy is its simplicity. The indications are based only on two indicators, the parabolic is completely standard, and the MACD is slightly modified in relation to the standard instrument.
Personally, I was initially a little overpowered skepticism, saying, how did these two standard indicator can give a stable result. But, I was really surprised that with proper use of the system you can get a really good result.
Of course, one should not hope that any signal will be followed by profit. Signals will still Unprofitable, and sometimes, it is possible to catch even a few elk in a row.
However, one good point of entry and well-balanced position can easily fight off multiple losses. Overall, this is a scalping strategy, but I did not understand why? The fact that we use a large timeframe – M30 or H1.
Accordingly, I do not understand why people from the forum relates this strategy for scalping. But, we are, in principle, anyway, as this strategy will be called, it should work and bring us a profit!
The key indicator here is parabolic, respectively, we conclude that we have before us a purely trend-following trading system, for which the presence of the flat would be a serious threat.
- A profitable system
Roughly speaking, during the consolidation the same parabolic permanently change their values, will itself generate false signals. But, as mentioned earlier, if you get into a good trend, then the primary losses is more than the overlap.
But there is one very important caveat – You should be able to squeeze the trend to the maximum. If Your initially position is a plus, and then not roll back, You get scared and close the position with minimal profit, that will be of little.
In fact is a direct way to slow the systematic draining and You have to understand! If You can’t stand the position correctly, it is likely that this strategy is not for You.
From a positive point of view I want to highlight the fact that indicators this strategy does not redraw its values. That is, if the signal was, then after some time, he is not going anywhere.
Now is the time to consider the potential signals that gives out presents scalping strategy. So, to start, we need to prepare our schedule. To do this, go to the interval M30 or H1, well, I personally tested the system on the interval M30.
It seemed to me that in this range a good balance of deals to their quality. With regard to the underlying asset there is to look for highly liquid pairs, which often happen to good market movement.
After that, we settle on a price chart the indicator parabolic and MACD combo, we install them with the standard options. And after this preparation you can wait for potential signals.
Here we have a good example to open a buy trade. We see that the Parabolic point was under the price, and when this occurred the intersection of the lines makd. As You can see, the transaction in this case would be closed with a good profit.
Here we have a good entry point for sale, as is the point of Parabolic SAR is above the price, and a crossing of the MACD. As we see, this deal would have closed in plus. But I want to mention one important point!
The first thing we need to look at the testimony of parabolic – it is the main in the context of this system. The intersection of the lines makd must occur within three candles Parabolic.
For example, if the intersection of the lines makd occurred only on the fourth point, then the price momentum is already far gone, accordingly, makes no sense at all to enter posisi.
Now, as for the take profit and stop loss orders. The forum recommended that the need to place stop loss in range of 10-15 pips and take profit of 20-30 pips. Personally, I can say that it is not good for anybody.
- Strategy Moving Average
To begin with, the large interval stop of 10-15 points will carry from small rollback, and take profit is small enough. Stop need to install the previous minimum or the maximum that will be 30 points. And while take profit should be at least 2 times more.
In General, I can say, if You competently to use this trading system, you can count on good profit. Again, try to trade only during a trend, as in flat false signals can not be avoided.
In any case, I strongly suggest You add additional filters to the system. Or trade in the direction of the global trend, this will reduce the number of potential signals, but their quality will increase!