Magnum Scalping V 3 Strategy For MT4
Table Of Contents:
Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.
The Magnum Scalping V 3 Strategy For MT4 is one of the most improved versions of the reversal strategy. If you search the net, you will find thousands of reversal trading systems but making money consistently with this system is too hard especially for the novice traders.
Considering the difficulties of the novice investor, the developers of this trading edge has brought a great deal of improvement in the trading method. PL Candle time, line 1.1, Indicator for invertir Mejor, Support RTF, and Stochastic Buy Sell Arrow is used as main tools. Usually, the investors get confused when they get a long list of indicators in the development phase of the trading edge. But this edge is already developed and vigorously backtested in different markets.
The experts have concluded that the system is suitable to trades the majors. In case, you chose to trade different financial markets, you have modified the trading method significantly and this can cause massive trouble. And there is a valid reason to alter the edge since the template can give you the perfect setup to find quality orders. But don’t get biased seeing the things arranged in the form of the template.
As a currency trader, you still have to adjust minor details and use basic intellect about the market. The complete beginners might think they are in trouble but fear not as we will walk you through this edge with a detailed explanation. Follow the steps of this content and you will slowly learn to make consistent profit with this well-balanced edge.
Long trade setup
Remember, this is a scalping system and you must be concerned about the tricky price movement. Every single movement in the price gives you information. And you should have the potential to decipher the movement into a classic trade setup.
Usually, the traditional scalping method fails as they work without having any confirmation. But we for this, we will use the concept of doji or are the bearish and bullish PA bar. But don’t worry, you won’t have to learn tons of techniques and pattern on the price action trading method. Just having fair knowledge on doji and pin bar is fair enough to open the trade.
The TMA band is the most important part as we will be searching for doji and the pin bar at those band. If the TMA band gives us a doji or the pin bar pattern, we do have a potentially bullish setup. Right before the next candle start, you should see a new red dot below the doji, and the new candle should have a green stochastic buy and sell arrow. The arrow is the indication for opening a long trade.
Place the Sl 3-4 pips below the tail of the doji of the bullish pin bar. Find the take profit level by using the nearest supply line. In case, you are not good at analyzing the resistance, you can multiply the SL with number 3 and get the desired take profit price. This is a simple technique that gives you a well-balanced trade setup having a 1:3 risk to reward ratio.
Short trade setup
Short the asset might seem an easy task and indeed it is. But we will use a different approach so that you can trade when the TMA bands are breached by massive bars. Trading or thinking about a short trade will be viable only if the bar results in a powerful doji or bearish pin bar.
Remember, the price loves to stay in the TMA bands. So, if it breaks above it, you will see the price entering to the TMA zone. After the doji or the bearish pin bar, the blue dot should start appearing from the tail of the false break or the doji candle. If it is a pin bar, you are in luck since the potential of a significant drop in the price is more than 90%. Wait for the selling arrow before you short the asset.
But if the stochastic buy and sell arrow fails to generate the selling arrow in the next candle, ignore the setup. If it does, place the Sl above the tail of the bearish bar. And set your take profit by maintaining a minimum of 1:3 risk to reward ratio. Those who used to think, scalping requires low risk to reward ratio should read this guide. Many pros use 1:5 or even 1:7 risk to reward ratio while scalping with the magnum strategy.
The benefits of having high RR ratio is enormous as it gives the traders a unique opportunity to earn a significant amount of money. You may think you are the king and you don’t have to learn anything new after winning a few trades with this method. But remember, pro traders will also lose money with this method. The system is capable of securing a 90% win rate. So, risk management is a must so that you can cope with the 10% losing trades.
Trade management technique
Managing your trades is a very hard task. Traders often seem lost when they lose 3 or 4 trades. A scalping system can easily lose 3 or 4 trades and this doesn’t impose any doubt on the existing system. However, if the consecutive losses exceed the number 10, you do have problems with the system.
Those who will follow the guidelines of this article will no longer fear the term scalping. They will fall in love with this method, and eventually, it will help them secure financial freedom. But everything will in vain if the traders open traders with more than 1%. Due to the nature of scalping strategy, a trader can open 3-4 trades or even 6 trades per day.
So, the potential chance of losing all 6% of the trades remains even if the risk is 1% per trade. Losing 6% of the balance is acceptable as you know you won’t lose 11 trades in a row since the system is capable of generating a 90% win rate.
Having such a losing streak is highly unlikely even if you do face such a problem, you can recover the losses with a high RR ratio. Lastly, be a disciplined trader and never think to break the basic rules to recover the losses.
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