I a have been looking at the SMA 5 and SMA 15 on the 1 min time graph andi observed that one can scalp with very high winning ratio if the following simple rules are followed.
Go long when the SMA 5 crosSes above the SMA 15 at the close of a candle.It is very imprtant that the cross be complete (not just touching/grazing )so as to avoid false crossing
Take profit is Y.(10 pips seem ideal) but it can be put in extern varible for optimisation.
Go short when the SMA 5 croses down below the SMA 15 at the close of a candle.It is very imprtant that the cross be complete (not just touching/grazing )so as to avoid false crossing
Also Take profit is Y.(10 pips seem ideal) but it can be put in extern varible for optimisation.
NOW VERY IPORTANT:
1)IF THE TAKE PROFIT VALUE IS NOT REACHEDTHE POSITON SHOULD BE CLOSED AT THE OPPOSITE SIGNAL(THAT IS AT THE CROSS OF THE TWO SMA).THERE IS NO HARD STOPLOSS.THIS IS THE STOPLOSS.
2)IF A POSITION IS CLOSED BY TAKE PROFIT, THE SYSTEM SHOULD BE PREVENTED FROM PLACING ANOTHER TRADE UNTIL THE NEXT CROSS FOR THE OPPOSITE SIGNAL.THIS IS TO PREVENT THE SYSTEM FROM PLACING A TRADE IN THE SAME DIRECTION FROM WHICH PROFIT HAD JUST BEEN TAKEN.
The one minute time frame is ideal becuase there are many cross overs occuring so a 10 pip take profit would amount to a lot with many trades from the many crossovers with 80 percent of them leading to profit at a fair take profit and the loss when a trade fails is minimal since it is just a 1 minute time frame
a use hour code would also be nuce if included
I would appreciate it if this strategy is made into an as it has very great potential
looking forward to hearing from you.