Is Scalping a Way to Survive High Volatility?
During the current COVID19, the High Volatility can make many instruments un-tradeable as where a trader would normally place a Stop means, generally a massive risk. Lots of traders are wiping out their accounts or the sensible ones are not trading or trying to find a trading strategy with less risk. Going down to smaller time frames and scalping can be a safer option with forex, futures, indices and commodities during this time. The downside is traders could have a large loss that wipes out all the small gains. BUT traders need a strict strategy to enter and exit trades with a set of rules that are simple and repeatable. (Please click on all chart images below to enlarge and open in a new tab)
Our Roller Coaster Indicator Suite for Major Trading Platform gives just that! A simple and repeatable strategy with entry Stop loss and Trailing stop positions. The Basics of this strategy can be learned >>HERE<<
Finding The Groove
I recently wrote an article on “Finding the groove”, which discussed finding the time for each Currency Pair, Index or Commodity that is responding to our Roller Coaster Indicator Suite. A great deal of the examples were on higher time frames, like 1Hr, 4Hr and Daily. I also discussed Risk to Reward and Risk Management with a view of lot size.
But What about Scalping?
Where is the groove and what times of the day have the best Groove?
Once our Roller Coaster is loaded up, you will need to “LOOK LEFT”, But only a couple of days! It’s important to understand how an instrument is behaving over the last couple of days on the 1 minute, 3 minute and 5-minute time-frames. Look for the Groove with our Roller Coaster! And of Course what time of the trading day gives the best results…..
PLEASE ALSO NOTE any major data points that affect a particular instrument by using an Economic Calendar – Be Safe and stay clear of Data points!
What’s a Bad Groove?
The Chart Below is the EURUSD on the minute time-frame around the European Close and through to the European open. As you can see in that period between European trading hours, this Currency Pair on the 5 minute had a 50% win rate with our Roller Coaster. The wins weren’t large and Basically there is “No Groove”
What’s a Good Groove?
The Chart Below is of the USDJPY on the 1 minute timeframe Between 10am and midday (European Time). 100% win rate, great moves up and down using our Roller Coaster Indicator Suite for the MT4 Platform – Now that Our Roller Coaster Groove You are looking for!! Remember only look back to previous two days on any instrument to find something in the groove….
It’s Not Just Forex!
The Chart Below is GER30 or DAX on the 5 minute time frame over the prescribed 2 day look back period. Great 77% win rate with our Roller Coaster indicator suite and in the Scalping Groove. Earn what time of the day the failures were and also was there major data during that time! For Example the failure on March 18 was due to Major European Data on Trade Balance, Consumer Price Index at 10am European Time and then Germany 30Y Bond Auction at 10.30am European time. Learn the lesson and Don’t Trade Roller Coaster around this data!
Learn From Behaviour
From the example above we can learn from market behaviour to Data and Learn “When Not To Trade”. When using our Roller Coaster, it is as Important to find the Groove as it is to find why the failures occur when we “Look Left”. This could be said for any trading strategy BUT do we all use this standard approach when trading? As I always say:
“Our Job as a Serious Trader, is to find Reasons
NOT TO GET IN A TRADE!”
Once you have filtered the trading opportunity and you CAN’T find a reason NOT TO Trade then MAKE the Trade. This is much easier when using our Roller Coaster Indicator Suite as we give you the entry, stop and even give you the trailing stop positions to manage the trade. Watch the Training Video for the Roller Coaster >>HERE<< – Just remember to find the Scalping Groove for the instruments you want to trade with it……