The Tower Scalping Trading Strategy as At May 4, 2017

I have another post on this system from a couple days ago, you can see it here, There is a description of the components.

Here are some looks at entries from today on a 15-minute chart. You can see that there were several entries as the pairs were trending nicely.

I like the idea of the 15-minute chart although I can understand that people would like to use the 5-minute chart for a little more activity...

The simplicity of this system allows a trader to watch several charts at a time so there is a good opportunity for daily profits.

As long as people are using a sensible stop loss there should be no worries about serious risk to the account.

Here are the charts.

Good Trading..!

The Tower Scalping Trading Strategy

This may be the simplest of all scalping strategies available for a five-minute chart.
A visual strategy that requires only one indicator, a rainbow of moving averages.

Entries

The entries are relatively simple with this trading strategy.
Usually one would enter on a retrace, price entering the moving average rainbow and then bouncing back, the entries to be ‘with trend’.

As an alternative setup to using the moving averages only is to add a stochastic oscillator, however, as you can see in this chart, using a stochastic to confirm signals is a waste of time.

While a trader may start off with only one chart to learn how to trade this strategy, they may well want additional charts because of the delays in entries. The system moves slowly enough that someone could probably monitor 10 charts or even more.

A bit of experience and a few hours of screen time will allow the trader to add charts to his screen and have a more profitable day.

Stop Loss and Take Profit

It is most essential that a trader uses a Stop Loss with this technique, especially because the markets have been known to reverse quickly. I would suggest a Stop Loss of no more than 10 pips, especially for someone new to trading.
The take profit should be set at approximately ten or fifteen pips, except on GBP pairs which sometimes have excellent volatility.
The trader is going to have to determine what risk he is prepared to take for entries with this system.
A good exercise is to ‘paper trade’ perhaps 50 or more entries, recording details as Stop Loss used, Take Profit used – these being on each currency pair as they all have their own patterns.
After such a test, then the trader can adjust stop loss and take profit according to experience.


Good Trading...!


UPDATE

More charts showing entries on this page

Simple Forex Scalping Strategy ‘The Puria Method’– Automated– AUDUSD

This is the second in a series about the “Puria Scalping Method”, the first article showed the results of automating the trading on the EURUSD currency pair, daily time frame.
You can reference that article here.
The background for this strategy can be found on that page.

Briefly, the Puria Scalping Method was developed several years ago for manual trading and I am starting to test various scenarios for automating it as it does show some promise.
I will be posting several tests as days pass and gradually narrowing down some choices to see if there is a viable approach to making an expert adviser from this Puria concept.

Today I will discuss results of a test on the AUDUSD currency pair.

For this test, I used Daily data from January 3, 2000, to April 18, 2017. I personally prefer to use daily data as well as 4-hour data for my own portfolio, hence I start off with the daily data.
Most people are going to be interested in a faster time frame, later I will work with one hour or 15 minutes to get some more interesting results for those people.

I have found that a 5-minute chart for an expert adviser requires far too much maintenance and that the higher time frames seem to have better results and require very little maintenance.

It is time now to get into the numbers for the Daily AUDUSD results for the Puria system.

I generated this one using a lot size of 0.01 and possibility of adding 0.01 or decreasing by 0.01 for subsequent signals. Please note that contract size is $10,000, instead of the normal $100,000. as that does make a significant difference.

I did not set take profit or stop loss, I left that to the generator to determine the trade exit.
In future, I may set maximum stop loss and a specific take profit so as to obtain more control over results. That may appeal to traders who would want to automate this system more than the freewheeling adviser that I have created.

Initially, the criteria used is a combination of the ma5 over ma85 and the 26,15, 1, Macd over the zero line. I do not use the simultaneous cross as those do not always line up and many entries would be missed.

The generator added two items to the mix, the exit is at the upper band of the Steady Bands and additional entry criteria, the Hull Moving average.

The Steady Bands period is 48, the margin in points is 884 and the shit is 0. I would not have ever considered those numbers, however, until the strategy proves itself in real trading, I will go along with it.

Here are some results.

You can see that Win/Loss is 1.00 which is super! System Quality number is very high at 94.49 and Profit Factor is high also.
Quite pleasing results in many areas. This one could be a keeper.
EXCEPT that, there is equity drawdown of 70 percent which is a huge turn off!

Here are the numbers regarding long and short distribution.

From this, you can see that there were only two short entries, both of them losers.

There is not much of a takeaway from this test except that there was a nice appreciation of capital for the period and that the drawdown was excessive making this one not very interesting.

Next will be some work with the faster timeframes and that will be much more rewarding.

Good Trading.!!

The Simple Scalping System Using ‘Magic Ribbon’

This has to be one of the simplest manual trading systems in existence. The Magic Ribbon system is just about perfect for someone that does not want to have his chart filled with indicators and wants to catch the trend changes.

A very easy setup.
Bollinger Bands 15, 0.05
Bollinger Bands 50, 0.05
Ribbon Indicator
The two sets of Bollinger Bands indicate the trend, the 50 for a longer trend and the 15 for the shorter trend.
The ribbon changes colour as the trend within the shorter trend changes… an easy indicator.

There is an alert built into the ribbon indicator, a trader can have a slew of charts open and be trading all of them.

Time Frames

This system can be used on the faster charts or the longer term charts.

For the trader that has little time to spend observing the market, he/she can use a 240 minute chart or a daily chart, the indicators work perfectly on fast charts or slow charts.

A GBPJPY 240 minute chart. You can see how well the trends and trend changes are illustrated.
Here is a daily chart for GBPJPY.

You can see the versatility of the Magic Ribbon system.

I mentioned that there is an alert built into the Ribbon Indicator.
You can see in the picture below that the alert appears as soon as the colour of the Ribbon changes.
Terrific for the trend trader!

No trading system is going to be completely perfect. Using this Ribbon will take some practice, a good amount of screen time perfecting entries and exits.

A Stop Loss is a must, and that has to be determined by the individual as entries are practiced.

Personally, I like the idea of a trailing stop for this system, especially if someone is away watching the charts for an extended period.
There are several trailing stop EA’s available, some free and some paid.
Actually, MT4 has a built in trailing stop which is easy to use.

In addition to the indicators described above, I like to have a CCI on each chart to observe the momentum. It is not necessary to have the CCI on the chart, I find that when the CCI gets to the extremes we can expect a reversal in trend, a warning signal.

Below are some examples of the Ribbon on several pairs from today.

Simple Forex Scalping Strategy ‘The Puria Method’– Automated - EURUSD

Recently I noticed ‘The Puria Method’ in a search for scalping strategies. It turns out that a search for Puria will bring up 1,350 pages approximately, most of them being copies of each other…

Most of the pages promise 50 pips a day, average as profits from the system which is traded manually. few of the pages offer any type of research.

My interest was peaked when I saw that the strategy uses few indicators and has a simple entry, a moving average crossover.

The indicators used are the Macd and three Ma’s, simple enough for a visual system.
The Macd has special settings – 15 26 1
The Ma’s are 5 75 85

The trigger is a cross of the ma’s and the Macd, easy to see and simple, perfect for manual trading, but not that great on some pairs.

I decided to experiment with this system and see if I could automate it.

Using FSBPro I set up the criteria for the moving averages and the Macd as per the instruction and applied them to data for a daily chart of the EURUSD.
For the lot size, I used 0.01, the smallest available.

My objective was to generate a strategy that would encompass the indicator setups and allow FSBPro to find an ideal solution re take profit and any other indicators that may be required in order to produce a solid system.

The generator produced a most interesting result for a strategy.
First it added the ‘LowPass Filter’ indicator and then added ‘Envelopes’ for the closing logic.

And that combination produced some interesting numbers.

Unbelievably, using a 30 percent ‘Out of Sample’ FSBPro produced a 100 percent win strategy over 16 years of data….. that surprised me!

No losing entries….. I am not so sure that would be replicated in real trading but it is a good start.

The System Quality was a surprise also – 100.00. It is not all that often that a person will see System Quality Number over 10, again a big surprise.
Over the 16 year testing period was 922 entries, all of them were long entries…. zero short.

The largest profit was 61.45 while the average profit was 43.27, and, of course, there were no losing trades.
One major negative with this ea is that the drawdown percent was 77 percent which would be a bit scary to many traders.

The results of this test clearly indicate that further work is deserved, perhaps to include a stop loss to cut down on the drawdown. Of course that will reduce the profits but safety of capital is very important.

Here is what the indicators looked like after the FSBPro generator developed this strategy a little further.

As you can see, the generator added the LowPass Filter as part of the buy signal and then added Envelopes as the exit signal.

Now we can have a look at some numbers.

and more statistics

As I mentioned earlier, there are only long entries in this generated strategy, no short entries.

A review of the numbers shows some excellent ratios.

The next step will be to see if this Puria approach will work on another currency pair.

Again, I also want to try to get the drawdown to something acceptable.

I plan to test other pairs and some different time frames and also incorporate stop loss provisions.

I find that testing criteria in many ways will bring about something that may be suitable for  my personal portfolio.

OK, we have a start on this one and soon I will report on the next test.

Will You be Great At Forex Scalping?

Most traders have heard of scalping. Forex Scalping is practised by many traders and there are many variations of methods.

A brief explanation of scalping from Investopedia.

Scalping, at least in trading, is a term used to denote the "skimming" of small profits on a regular basis, by going in and out of positions several times per day. Scalping is not unlike day trading in which a trader will open a position and then close it again during the current trading session; in other words never carrying a position into another trading period or holding a position overnight. Whereas a day trader may look to take a position once or twice, or even a few times a day, scalpers are much more frenetic and try to skim really small profits multiple times in a session. And whereas a day trader may trade off the five-minute and the 30-minute charts, scalpers will often trade off of tick charts and one-minute charts. In particular, some scalpers like to try and catch the high-velocity moves that occur around the time of the release of economic data and other important news events, such as the release of the employment statistics or GDP releases if that is what is high on the economic agenda.

Day Traders and swing traders like to use the longer time frame charts such as 30 minute up to daily charts, whereas a scalper is much more at home on a tick chart or 1-minute chart. The scalper wants to catch small moves and get out with a quick profit of 5 or 10 pips. The Swing  Trader would probably want to profit by 300 or 800 pips. Quite a difference between how these types of traders operate.

Who Can Be A Forex Scalper

The answer to that question can be simple or complex. Anyone can be a scalper but their personality may or may not suit this type of trading.

Scalping suits the person who is prepared to sit watching the trading screen for a few hours each day and pay strict attention to the charts and execute trades with precision.

It does not suit a person who wants to be able to go out for coffee or visit the trading forums or read the news. Without strict focus, a trader will lose out on opportunities or, even worse, experience serious losses because of inattention.

There are certain times each day when scalping can be profitable and other times when there is little chance of profits. To be successful at scalping a person has to be watching his charts at the right time, even if that is the middle of the night in his timezone.

A scalper has to be disciplined, well practised with entries as there is often little time for deliberating when opportunities arise. He has to know what entry criteria he will use and be able to recognise instantly when the situation arises and then quickly enter the trade.

As opposed to the scalper, a swing trader may have as long as a day to enter a trade, lots of time to research and do studies to evaluate the entry.

What Can Go Wrong With Scalping?

It is best to be aware of pitfalls of this type of trading as there are some that can be very costly.

• Power outages can leave the trader extended if he has open orders.
• Internet failures can prevent trade monitoring.
• Latency can cause missed entries and exits.
• Rapid moves in the market can cause stop loss orders to be ignored.
• Brokers may be offering re-quotes which are disadvantageous to the trader.
• The broker may be actually trading against the trader and holding back orders to improve their position.

A forex scalper has to be aware of this type of problem and he has to do his due diligence well ahead of starting to trade. It is well known that it is very difficult and time-consuming to recover funds lost in a trade.

What Does the Forex Scalper Need to Start?

• A detailed written Trading Plan
• Low spread broker
• Precise Method for entering trades
• Fast Internet connection
• Strict discipline and focus
• Reliable trading platform
• Broker support telephone number
• Detailed trade journal for recording entries
• Exceptional capacity for handling stress

With these factors considered and prepared for a person can start to develop the strategy that he will use for trading and incorporate that into his written trading plan. The reason for the written plan is to ensure that there is something to refer to before trading and after the trades for the day are closed out.

It will take practise to make sure that the trades are being executed according to the plan and a demo account is recommended for this purpose. It may take a period of six months to a year of practice and develop the trading plan before things are ready for real account trading.


Which Currency Pair is Best for Forex Scalping?

There are many views as to which may be best currency pairs to trade, perhaps as many as there are traders.

The criteria have to be based on what is necessary for a profitable entry, not on whether the pair is a “Major’ or ‘Carry’ or ‘Exotic’. The reality is we can be scalping Indexes or CFD’s or stocks or bonds or futures……. The name does not matter and I have seen so many articles attempting to segregate the instruments.

Some scalpers feel that they want a pair with a low spread, good liquidity and volume. In many cases, the EURUSD pair offers those.

It would be wise to investigate a few different brokers for spreads and execution speed and latency as there is a wide variation.

Some brokers do not like rapid trading and they make that known in their documentation.

The reason that I mention these is that each broker will have a different method for different pairs and that is well worth investigating.

Further, you may find that the brokers are inflating the spread in the times that are best for scalping thereby removing your profits.

Some brokers with fixed spreads, merely requote your orders to reduce your profitability, and some of them have software which is geared to work against your order. Metaquotes brokers are often using such software, it is best to investigate carefully all aspects.

All of that being said, there is no ‘best’ currency pair to scalp with, a trader has to investigate many aspects and make his own determination.

I can not stress enough that to do forex scalping a trader has to exercise his own due diligence in many areas.

CCI Scalping, Revisiting the CCI SlingShot

A few months ago I mentioned The CCI Slingshot and there seems to be quite an interest in this trading strategy.

This formation is quite common on several time frames and can be made to be profitable with adherence to some rules.

This is a trend following trade and is used for a continuation entry.

Read more »

Another Simple CCI Scalping Strategy

CCI makes an excellent scalping tool, especially if you can be patient enough to wait until a divergence shows up.

To make this a little more reliable you can add a RSI indicator to the chart and check for divergences with it also.

In this example we can use CC!7 and RSI7 and that is about all we need to locate Regular Divergences.

Keep in mind that Divergences do not always work, Stop Loss is essential.

For this type of trading I use a 15 minute chart.

Here are three examples that you can have a look at and then adapt your trading style to suit.

Again, a Stop Loss is necessary. and definitely do not ‘Bet the Farm’ using this type of method.

4 Simple CCI Scalping Trading Strategies (5 minute chart)

CCI Scalping is an excellent trading strategy, especially if you have some time to watch some charts for a while when trading Forex. 
I have collected 5 strategies with details below and when you review each one you will see that these are simple visual strategies with indicators that you may already have or you can easily find them on the net.
Each of these can be modified a bit to suit your taste, they are easily modified or enhanced.
The most important aspect of these systems is that the chart 'talks' to you loudly so that you can see the opportunities to pick up some good pips.

What is the CCI?

The Commodity Channel Index is a momentum indicator developed by Mr. Donald Lambert, primarily for Commodities. However, it is easily applied to other instruments such as stocks and indices and forex. What it ‘ondicates’ or measures, is the current price level compared to an average price over a period of time, that period being, in many cases, 14 or 20 bars.

Here is the calculation involved

CCI = (Typical Price  -  20-period SMA of TP) / (.015 x Mean Deviation)

Typical Price (TP) = (High + Low + Close)/3

Constant = .015 Source Stockcharts.com

CCI Flash Scalping - Learn Forex Trading
CCI flash scalping is a forex trading system trend momentum very fast. A nice little 5-minute system – ideal for riding London morning session trends.
Time Frame 5 min.
Currency pairs: EUR/USD, GBP/USD.
Indicators:
Commodity channel Index (20 periods close);
Exponential moving average (34 periods, close).
CCI Flash Scalping trading rules
Sell
For a SELL trade, we want the price to be trending down and BELOW the 34ema.
We SELL when the CCI(20) crosses down BELOW the -90 line(level).
Buy
For a BUY trade, we want the price to be trending down and ABOVE the 34ema.
We BUY when the CCI(20) crosses down ABOVE the +90 line(level).
Exit position at the opposite conditions or make a profit with target 5-7 pips.
Initial stop loss 15-20 pips.


Forex Trading: Easy Scalping at M5 on Any Chart | Make ...
indicators :
(1) Moving Average (MA): period 14
(2) Stochastic Oscillator: K period 14, Slowing 7, D period 3, level 25,50,75
(3) Commodity Channel Index (CCI): period 14, level +100,0,-100
TimeFrame: M5 or higher (scalping is recommended at M5)
StopLoss: 10-15 pips (is a MUST in case of sudden trend reversal)
TakeProfit: 10pips but recommended using exit indicator as below for maximum profit.
Instruction
Long :
ENTER – Price over MA(14) line + Stoch heading upward + CCI(14) crossed level 0 in upward direction
EXIT – Stoch crossed between level 75 and 100 and heading downward OR/AND CCI exit +100 region OR reversal of 3 bars
Short :
ENTER – Price below MA(14) line + Stoch heading downward + CCI(14) crossed level 0 in downward direction
EXIT – Stoch crossed between level 25 and 0 and heading upward OR/AND CCI exit -100 region OR reversal of 3 bars
WARNING: STOPLOSS 10-15 PIPS!!!!!


Intraday Scalping Using EMA & CCI - BabyPips.com
http://forums.babypips.com/ Sat, 27 Apr 2013 01:36:04 –0700

Hi Friends,
I am effectively using EMA & CCI for scalping for the past 1 Month.The Results are encouraging.
Entry made in 5 Mins chart Using 288 & 1200 EMA to know trend & momentum and CCI for entry.
Entry Rules for Long
If we want to go long price should be above both 1200 & 288 EMA.Will enter once CCI Moves above -100 from oversold area Provided Difference between entry point & 288 EMA is not more than 25 Pips. (This done to avoid buying 
Over bought Condition).
Note 1)1200 EMA (Proxy for 200 EMA in 30 Mins)- This used to Find trend.
2) 288 EMA is the average price of last 24 Hours-This used to find Momentum.
Entry Rules for Short
Vice versa of Long Entry.
Exit rules
Stop Loss & Take profit 30% of Daily ATR with 1:1 Risk Reward Ratio.

Your feedback pls.
If can one can make EA with the above conditions it will be useful, Since i am not expert in building EA.
Regards,
Muthukumar.


double CCI and Rsioma - scalping strategy ~ ozo forex trading
The best pairs to trade using this scalping strategy: EUR/USD, Aud/USD, GBP/USD. Time frame:1M and 5M. Spread max:0,00025.
Timeframe: M1*M5
Indicators: 2MA crossover, Heiken Ashi smoothed, Rsioma, Double CCI woody.
Entry to buy: 
1- The arrow is given a buy signal
2- CCI green
3- Heiken Ashi green
4-rsioma higher than 65


Entry to sell:
1- The arrow is given a sell signal 
2- cci red
3- Heiken Ashi red
4-rsioma less than 45





Target price: 15 pips or Fib level
Stop loss: 12pips or Heiken Ashi changed color.
DON'T Trade During News


If there is a news event and it occurs during your trading times, never trade 30 minutes before and 30 minutes after the news event.


These strategies with a little practice will allow a trader to make some nice profits from their CCI Scalping.

Magic Bands Scalp Trading Strategy As As November 21, 2014

There was good volatility in the Forex markets today and some excellent opportunities using this simple strategy.

Let's review a couple charts.

First is AUDUSD, you can see a nice move up and then a gradual move down, two simple entries for profit.

Next is EURGBP. There was a nice bearish entry and then another on a retrace. It is important to  be sure that there is a slope on the 15 Bollinger Band and preferably on both sets of Bollinger Bands. This will keep you out of the chop.

GBPUSD. There were a couple bear entries, the second one being after a retrace. Once those two were finished, the next couple  of the potential entries were suspect based on the slope of the BB lines.

I have several more charts below, that you can observe..... note that the best entries have a good slope on the Bollinger Bands.

USDCHF Once the long move finishes the Bollinger Bands flatten out.. close the trade and look for another trade, avoid consolidations and ranging markets with this system. There are many opportunities daily with this system on different currency pairs

On the AUDCHF, once the price retraces to the 50 Bollinger Bands, it is time to get out of this pair and look for another pair to trade. There is no value to trading in the choppy market, it usually ends up in a loss.

CADCHF  Once the long entry retraces.... get out of this pair and look for another entry on another pair...  Stay away from the consolidation periods!

As mentioned, most important is the slope of the Bollinger Bands. There are enough entries available on different pairs that we can pick and choose and be selective as to the entries we take.

In order to be able monitor several pairs for trade opportunity I have a moving average crossover alert set for the 15 crossing the 50, That allows me to be aware of what is happening on different currency pairs as the day passes.

Again, a stop loss is important in this type of trading, I use a trailing stop as well.

Next week we will probably see more volatility in the markets and many resultant opportunities for this simple trading strategy.

Good Trading..!!