Scalping for Ex

New trading system (personally i think explaining system without images is pointless thats why i will have to divide it into several posts becouse of image limit): After two months of Expert Advisor system developments i have finnaly concluded enough knowledge to put it all into final trading system. Previous Hybrid system based on TMA, TDI and Stocastic indicator is no longer being used as overall it was focoused too much on M1 charts without having the big picture ahead, which did cause some surprising turns in dirrection of oposite than trade. Overall while win/loss ratio was still arround 70-80% new system is pretty much giving 95% rate if you follow it correctly and the only time where you have to be carefull are strong fundamental times such as central banks. Here is new system version, lets call it Hybrid Scalping system v2. System is based on PA, Ichimoku indicator, daily Pivots and Bollinger bands. System was somehow expanded on ideas that were being tested for EAs with different indicators, thanks go also to fellow trader Joopzor who has been great help and motivation on system development. The strongest part of system is Price action, without the doubt. Price action and occassionally Bollinger bands are good for determining entries, while Pivots and Ichimoku are used mainly for exits. It might be little unusual that Ichimoku is not primary used for breakouts but rather for reversals but i found this more reliable, since its hard to find perfect Ichimoku settings where you can say: Now this breakout is a sure thing, couse many of them fail. Overall the main trading point of system are pullbacks. I am no longer trading only EJ with system but rather pretty much all majors and some crosses too. Anything is tradeable as long as spread isnt really astronomical. Take profit for trade varies from 5 to 50 pips usually, it depends on what time frame signal has been taken. Very important, when trading system trader should always check the "big picture" before entering any trade. This means entering trade even if its small scalp that has better chance of success due to backing in general move. Becouse we are looking for pullbacks we are not looking for trades that are with trend, but rather for trades that are against it. This means finding tops, bottoms, pullbacks, distances, crosses and major reversals.

Indicators needed for this system are all already in mt4 by default with exception of Daily Pivots 2 which you have to download here: Daily Pivot V2 Indicator | Forex Signal - Trading strategy - MT4 Indicator or here: Daily Pivot Indicator V2 | UltimaForex.com This is from my experiance best pivot indicator, it is very clean and it also paints levels for historical data which is very important for learning. I would recommend using white-black chart setup as it really makes Ichimoku charts better visible, but if you cant sta stand nd whit white e backgro background und,, using using anyt anything hing els else e is fine fine too too Indicators are running on those settings: Ichimoku (9, 26, 52) you can also use settings (333,55,222) for longer term trading if you wish to tweak system more into longer term trades, i am experimenting with those bigger settings on AU pair and it works well. But all other pairs are using first settings (default Ichimoku settings). Bollinger bands (peroid 40, deviation 3, shift 0, Apply to close) Daily Pivots v2 (default)

This is how your chart should look like:

Explanation of Pivots trading: Pivots are structured of three support (blue) and three resistance (red) levels (S1 S2 S3 and R1 R2 R3) and the middle green line represents pivot point. Pivots are strong indicator for reversals or countiniation of trends. For pivot trading signals we look on m5 and m15 time frame for reliable pinbars or closings bellow above pivot. Two things to look when PA reaches pivot: 1.PA closes above pivot with full body. This means no rejection of pivot was given, trend countiniues in this case we can simply place trade along with trend and aim no more than 20 pips (avarage 10-20). Usually price will go 20 pips over the pivot but then it will still return back from the dirrection it crossed pivot. 2.PA closes as Pinbar bellow pivot (if it came from bottom dirrection) and closes above (if it came from above). Its important that candles body closes above or bellow pivot and not in middle or in wrong side. This means we go against trend in pullback trade aim again for 15-20 pips. Example of PA rejection on Pivot: Example of breaking pivot: Examples of pivot trading:

Read more: http://forums.babypips.com/free-forex-trading-systems/52744-hybrid-scalping-system-12.html#ixzz2kHljQeYn

Explanation of Bollinger bands: Bollinger bands are probably easiest to understand of indicators used in system , straightforward and quite reliable if you know signal strenght given by this indicator. Since i am mostly no longer trading m1 time frame and entries are not as agressive as they were with system version 1, you can still use this approach to gather more frequent pips if you are doing full time trading. Basically Bollinger bands can help you with this by adding 3 different bollinger bands versions on your charts. This system can work just as well with having used three bollinger bands but it will make charts more chugged. I am using only 1 bollinger band indicator with settings that are somehow balanced between signal frequency and strenght (giving strong signals but are not too rare). Signal strenght of Bollinger bands is important becouse not every signal should be jumped on emidently and there are signals that you can use as entry and there are signals that should only help with finding exits. For entry you need strong signal that is quite reliable for that you should only look where PA closes as Pinbar outside of Bollinger bands (it doesnt have to fully close outside, just closing 1 or 2 pips of pinbars wick outside is enough), but mind that to get really strong signal this should happen after a rally or fall, if you enter on such signal in consolidation or in non determined move you still might get in wrong position. So what you basically do is count how many pips of a fall or breaktrough has been on m5 time frame since latest low or high. Lets say that you see 100 pips fall on EJ M5 and pinbar closes outside of bands, this could signal good potential for reversal. Signals that are good for exits are usually anywhere where PA closes out of Bollinger bands, for example if you are in long trade and PA closes above upper band this could signal bounce to down side and signal exit. 

Example of strong BB signal: Example of weak BB signal:

Examples of BB signal strenghts:

Explanation of Ichimoku: Ichimoku can help us determine start of trends and their ending. For Ichimoku we do not use anything else besides Kijun and Kumo (cloud). You can paint Tankain sen and Chinoku span into background color. Overall Ichimoku is being used different that most traders use it. We are not looking for breakouts with ichimoku (or at least we arent trading them), but rather look reversals with it. No matter what Ichimoku settings you use you will always get fake breakouts and you will always be late into catching most of them. Reversals can be cought with very little delay and are more reliable. Ichimoku is a bit different than most indicators becouse it is purelly visually based indicator and there are no oversold or overbought values displayed so you have to gather all informations from its position related to Price action. If you watch charts closely you will find that even that it seems quite dynamic and unique indicator there are repeatative formations formed trough historical charts. Here are the basic ones: 1.Price action after bullish trend went bellow trend, it consolidated a bit and then Kijun suddenly starts to turn down. This indicates trend reversal: 2.Price broken from Kumo way before than Kijun did and the distance from PA to Kijun is huge, this is bad breakout most of the move already happened no point of chasing the trend here, more likely look for reversal:

Examples of Ichimoku patterns:

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06-21-2013, 05:36 PM#123 PM#123

janpec1000 janpec10 00 Junior Member

Join Date Sep 2012 Posts 155

Explanation of PA: Price action is the strongest part of system without the doubt. With Price action we are looking for three things: 1.Patterns (not as much chart patterns but only candle patterns such as pinbar, hanging man, evening star...) 2.Rallys and dumps (strong movement with PA not making any significant lows or highs but only heading towards one dirrection. Its important that PA has not been making any significant pullbacks yet, this defines good strenght and bigger chance for strong reversal. The stronger the PA heads towards one dirrection the stronger the pullback. )Any rally or dump has to be measured in pips, for this you will need to follow rules that every currency pair has different avarage strenght in movement for which you use as reference. For example on AU pair 80 pips move without pullbacks is already considered our possible entry condition while on EJ this distane is above 100 pips as JPY pairs tend to move more. 3.Distances from kijun, distance of PA and Ichimokus Kijun line is always important it gives you overall information how much could price still drop quickly. If you see strong downtrend and PA is still quite close to kijun (eg M5 EJ 15 pips) this still has a lot potential to go even further down. If you see distance like 80 pips on M5 EJ this would mean that its very low chance for price to countiniue going with trend WITHOUT having any decent pullback.

Importance of "big picture" explained bellow. To decrease potential draw down in trades with pullback entries (again main trend) it is important that you always follow where your current pullback entry is in relation to main trend. If the trend has just started (eg 50 pips drop after rally) then any long you are placing are in danger of suffering DD or being wrong trades as price could move further away to correct the move before. Always count the pips since last tops or bottoms for the treds. Also keep in mind this ratio: EJ, GJ, AJ 1,5 vs 1 EU, GU, EG, AU This means that any rally or fall on JPY pairs should be 1,5 times bigger to be considered huge comparing to other major pair, as most JPY pairs tend to move more.

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06-21-2013, 05:38 PM#124 PM#124



System put together with trades taken:

If you have questions regarding new system please let me know. To check more detailed explanation of trading with system please download videos attached bellow (will be uploaded tomorrow). 

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06-21-2013, 05:46 PM#125 PM#125



Just wanted to add that new system V2 is completly suitable to use on ANY TF, as long as you keep "the big picture" in mind, which means always checking three time frames above your traded TF. If you are trading with new system please keep other members posted on trades you take, if you can - live trades. 

Read more: http://forums.babypips.com/free-forex-trading-systems/52744-hybrid-scalping-system-13.html#ixzz2kHlt4qWz Yes that is correct, it is less focused into OS or OB numbers of indicators and rather more focused on what you see on Ichimoku and PA, aswell as what has happened and how much over certain peroid of time. This is all basing on that forex markets are moving in circles and patterns.

As for SL yes usually putting it above pins highs and lows is good idea, however if you are picking entries correctly after sharp retracements or rallys this is not needed. What i do is i use visual stop and even if trade moves 20 pips against me i will add another same position if entry with pinbar is spawned bit further, for example if i see rally on about 150-200 pips i will start placing shorts on each pinbar formed that could signal retracement, and use BE SL as soon as possible on 50% of opened positions. Then few positions are closed after first retracement is completed and the rest positions are closed after full retracement of rally (about 50%) has been done. Good example was GJ retracement at 18:00 PM after it finished and formed first pinbar i added first short, then it moved abit more up and formed few pinbars signaled top then i added 2 lots of shorts and they all hit TP. This was very good example of perfect entry for this system as it was really strong M5 retracement in just few m5 candles it traveled more than 100 pips. SL in such case could be placed above wicks of pinbars but really in normal market conditions that are not impacted by heavy fundamentals such tops hold. Here is how to trade it:

Read more: http://forums.babypips.com/free-forex-trading-systems/52744-hybrid-scalping-system-13.html#ixzz2kHlyGOSU Ticking quallity is a bit bad on this chart but still good enough to use it for learning. Some trade examples taken:

1.Long entry. It was entry ahead of when pinbar was formed but it was still safe entry becouse distance from Kijun is huge, it was sharp fall and some sort of retracement is expected. Price went straight to Kijun which is about 50% retracement from move before, but i closed it a bit sooner, if you do aim for 50% retracement with TP on kijun it is recommended that you use BE SL becouse price tends to move fast down once it reaches Kijun. 2.Short entry.Entered short after bearish pinbar was formed. Was expected for price to go to Kijun and then bounce back, entry here was a bit ahead, if you use stop loss in such case place it 10 pips above Kijun. Overall it was safe short entry as Kijun was just about about to break break down down from cloud cloud into bearish bearish teritory. teritory. 3.Long entry. Entry after pinbar was formed, it has been sharp 180 pips fall and we enter on pullback here. TP is such case could also be on Kijun and PA meet, which you can notice that price went to Kijun and then it consolidated a bit. I did close this trade way too early. 4.Short entry.Overall we are in 80% correction from previous move and it was very nice topping by strong pinbar, pretty much the same story as on GJ chart i posted few posts above. Price made strong correction of previous move, topped and then returned down a bit enough for us to catch some pips on short. In such case price retraces to 50 or 80% of PA and Kijun distance it usually never gets very close to Kijun as it bounces up early. 5.Short entry. If you take a look on Kijun it made a bit down turn a little hook , signaling that bullish trend might be over i have entered short on resistance and rejection from previous short entry. 6.Long entry. Trade still opened.

1.Short entry. It was strong correction up on last few candles, it was quite small retracement and move up move was signaled by bullish pinbar right after entry. Once this happens its best to exit as soon as possible. 2.Short entry. Clear rejection of Kijun on bearish pinbar, PA closed bellow Kijun which signals rather bearish move. Exit was made on support from previous lows. (Between 2 and 3 entry missed clear bump from Bollinger bands on 2 pinbars, wasnt paying good attention to it). 3.Short entry. Close out of Bollinger bands, after 3 strong bullish candles, some sort of retracement is expected in such case never aim 50% but rather less than 25% of retracement as we arent really trading retracement of big move but rather only smaller bullish move. 4.Short entry. I have exited here little before PA and Kijun bumped, secondary exit could be two candles later on bullish pinbar. You can notice that PA went bellow kijun few candles later and Kijun started to turn down, if you wouldnt have exited before, TP would now be on last two pinbars shown on chart (50% retracement of whole bullish move). Read more: http://forums.babypips.com/free-forex-trading-systems/52744-hybrid-scalping-system-15.html#ixzz2kHm7qSFK My account risk per trade is usually u sually 5%, but i have to say those days i rarely even go into draw dawn that exceeds 1% 1 % of account balance. This system allows very sharp entries allowing you to minimize DD and on other hand increase your you r lot size to maximize gains. For example my usual u sual trade consists of 30 eur drawn dawn and c losed 80-100 eur of profits in the end. (3 pips DD and 8-10 pips profit).

Read more: http://forums.babypips.com/free-forex-trading-systems/52744-hybrid-scalping-system-22.html#ixzz2kHmsKbJ0 Okay here is update on how i trade news. By news i mean anything that has two (medium) stars of impact on economic callendar. I use this site for callendar: http://www.investing.com/economic-calendar/ The most important part is that for entry to be valid after news release it has to be quick move of at least 20 pips. That is the minimum if its less just dont bother trading it. For news trading always use M5 chart becouse only there required technical information can be read correctly. Usually you wait for news release and enter 5-15 minutes after release depending how quick price stops.

For entry to be valid this required conditions have to be meet: 1.Price going outside Bollinger band. Bollinger band should be in contracted state (visually represented in non expanded "tunnel" state), this is not required but it is better if it is in such condition. 2.Move has to be quick on 1-3 M5 candles usually of at least 20 pips size. Bigger the move bigger the TP. *Additionally it is preffered if Kijun is flat before you enter, this is the safest way of entering (kijun flattens on candle open or close usually) it is not required but if you want the safest entry thats the way to go. Usually what i do is enter ahead even when kijun is not flat and if it flattens durring my entry few minutes after i enter additional position. * System is 95% reliable on news entries but BE AWARE!:

This only works on "casual" economic news but you have to STRONGLY AVOID CENTRAL BANKS such as FED, ECB or BOJ. When news releases or their meetings are released those moves can move way out of extremes and do damage to account. The only exception is FED meeting which is quite often spiky movement of up and down, it is recommended if you trade it do some research ahead what is planned to be spoken if its very strong important news comming from FED chairman rather avoid trading it. Here are chart examples (right click and open image to see it in full resolution):

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07-30-2013, 08:15 AM#233 AM#233



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07-30-2013, 08:17 AM#234 AM#234



Read more: http://forums.babypips.com/free-forex-trading-systems/52744-hybrid-scalping-system-24.html#ixzz2kHgsj5XJ Here are two examples for gaps trading, both on Gold. Its very straightforward, entry only counts if gap is bigger than 25 pips, and price has to touch Bollinger band on any time frame M5 and up (M1 doesnt count).

Read more: http://forums.babypips.com/free-forex-trading-systems/52744-hybrid-scalping-system-29.html#ixzz2kHjNqqPs

Here are some examples how you can also trade many ways of this system by simply using visual patterns as reference, they are reliable about 90% of time. When trading those patterns SL can be placed 5 or 10 pips above (on M5-M15) above or under pinbar, TP is usually 10 pips. Higher TFs ofcourse scale SL and TP. 

1."SNAKE TAIL" This pattern is usually found in bearish trends but aswell on bullish trends. Main parts of pattern are: 1.Ichimoku trend (for bearish trend we look for bearish Snake tail, for long oposite) 2.Kijun and PA distance, the greater the distance on Snake tail confirmation the better the entry. 3.Pinbar - absolute NEED to enter trade. 4.PA enters (bumps) into Ichimoku cloud - this is not required but those entries are certainly stronger.

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Last edited by janpec1000; janpec1000; 09-05-2013 at 12:44 PM. Like Reply 

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09-05-2013, 01:52 PM#310 PM#310



Next example is semi technical and semi visual pattern. "BOUNCING WALL" Main components of pattern are: 1.Higher low or Lower highs spoted, pointing to trend change. After 1 or two of them are spoted we draw trendline and wait for oposite Ichimoku breakout that it was presented before. 3.Trendline from which price bounces. Candle HAS to close above for long entry or bellow for short. SL and TP can be used quite tight since after trendline is broken entry is no longer valid, usually those kind of entries can use much tighter SL becouse pinbars do not penetrate trendline in angle like S and R is penetrated while being flat.

Read more: http://forums.babypips.com/free-forex-trading-systems/52744-hybrid-scalping-system-31.html#ixzz2kHjunAAr 

Next pattern is "ROCKET". Simply name from strong rally of big sized candles right on Ichimoku breakout.

Main components are: 1.Price rallying in strong (big) candles at same time as Ichimoku breakout starts. 2.Rally stoped by strong pinbar, signaling our entry. 3.Distance of Kijun and PA is additional confirmation if its huge.

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09-05-2013, 02:38 PM#312 PM#312



This is pretty much most used feature of new Hybrid v3 system along with other patterns. It is very frequent pattern and becouse it is entry with trend instead pullback you can nettle much more pips than on usual

pullbacks. Take profit on my M5 trades is about 10-20 pips on h1 is 40-80 pips. "TREND DUMPER" Main features of this pattern are: 1.Look for bearish entries in bearish trend and bullish entries in bullish trend. 2.Stocastic OB or OS. 3.Price coming close to Kijun or reaching it, Kijun has to point down or up. 4.Usually its best if pullback towards our entry is strong. I usually do not use SL with this pattern, becouse price often tends to go trough Kijun but then it stil dumps like it is suppose to, i would only suggest that you do use SL with XAUUSD (gold).

Read more: http://forums.babypips.com/free-forex-trading-systems/52744-hybrid-scalping-system-32.html#ixzz2kHk20eNB Here are more examples and explanations of trading with Trend dumper and V3 version of Hybrid system (note that at the moment i am keeping charts of V3 system without Bollinger bands and TMA indicator to keep them cleaner to learn from).

Read more: http://forums.babypips.com/free-forex-trading-systems/52744-hybrid-scalping-system-34.html#ixzz2kHkiLQTn

Here is example of Trend dumper method today that could be traded on GJ and how you can manage lot sizes according to how and where it appears. For example you can double up lot sizes on entries where trend dumper pattern appears on two time frames at once. Examples are entries number 3 and 5. Those appeared on M5 and M15 charts at once, you can notice that fall has been significantly higher than on those entries where pattern appeared on M5 only. Overall oportunities like this are great and show how strong trading this pattern is, all you need is to find trend that is represented by lower lows (in this example) and follow it on all charts from m1 to h1 for finding entries. All entries on pictures are short. Aprox 50 pips could be gathered here. Counting all JPY pairs over 200 pips and all todays pairs including gold over 500 pips in single day.

Read more: http://forums.babypips.com/free-forex-trading-systems/52744-hybrid-scalping-system-33.html#ixzz2kHks9gCk

Scalping for Ex

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