Parabolic Sar Trend Scalper Trading System For MT4
The Parabolic Sar Trend Scalper Trading System For MT4 is designed to trade only three major pairs. This scalping system works best with the GBPUSD, AUDUSD, and EURUSD pair. But some of the advanced traders often trade all the major pairs with the help of this system. To trade the major currency pairs, you must be certain that you know the INS and OUT for this strategy. Parabolic SAR, MACD colored and 100 days SMA is used to find the trade signals. The preferred time frame for this scalping strategy starts from the 15-minute chart. A higher time frame indeed offers better results but you should not be taking the trades in the daily or in the H4 time frame with this system.
If you chose a higher time frame, setting up the tight stop loss will be extremely difficult. Even in the 1-hour time frame, the traders find it hard to limit the stop loss to 15 pips. To ease the process of scalping, you can start learning this technique in the 30-minute chart. And the trades need to be taken in favor of the current prevailing trend. So, if the 100 SMA moves higher, you should be executing long trades only. On the contrary, when the 100 SMA is falling, use the Parabolic Sar Trend Scalper Trading System to take the short trades only.
Selecting the trading instrument
We have already been told that the Parabolic Sar Trend Scalper Trading System needs to be used with 3 major currency pairs only. But out of these three currency pairs, you will the ideal signal mostly in one asset. And to determine that asset, you must know the key steps used by the experts to select their trading instrument. First of all, have a look at the three major instruments to find the trend. One of the assets will show precise trending movement. That asset should your preferred trading instrument.
Elite traders also use the fundamental factors to pick the currency pairs. Since the Parabolic Sar Trend Scalper Trading System focus on quick profit-taking opportunity, you must not take the trade when there is a high impact news release. So, read the potential scheduled news on Australian, European, and U.S economy.
This should give you a decent idea and let you select the best trading instrument. However, some of the advanced traders prefer to trade the news. They must use the Parabolic Sar Trend Scalper Trading System in the 1-hour time frame and scalp with the help of a price action signal. Now let’s see how we can take advantage of this amazing scalping system just like the elite traders.
Parabolic Sar Trend Scalper Trading System For MT4 - Long trade setup
The elite traders always evaluate the position of the aqua-colored 100 days SMA to scalp the market. In an uptrend, they draw the important support levels so that they can look for the bullish rejection. A good trader should be able to draw important support levels with high precision. And the sweetest trading spot will match with the aqua colored moving average. Wait for the five consecutive green dots below the candlestick which is the strong indication for the bullish rally. Once you have the parabolic SAR confirmation, get the data from the colored MACD.
The colored MACD is going to act as our final filter. You should be able to find green bars on the positive side of the reference line. The green bars tell us that the bulls have already gained strong bullish momentum and ready to push the price to a new high. As you filter the trade signals by evaluating the green bars, execute the long order. The stop loss will be set right below the 100 days SMA and the take profit will be set to 20-25 pips. But make sure the stop loss level is not exceeding 12 pips. If it does, you should avoid the trade signals.
Parabolic Sar Trend Scalper Trading System For MT4 - Short trade setup
Successful traders use the Parabolic Sar Trend Scalper Trading System in a diversified way. In this segment, we will teach you how to get the confirmation early and set a sell limit order at the 100 days SMA. First of all, take the reading from the parabolic SAR indicator. The indicator should have printed multiple dots above the candlestick. Those green dots tell above the candlestick tell us the price is in the bearish momentum. The second thing which you need to observe is the position of the 100 days SMA. It must be above the candlestick or else you can’t set the sell limit order.
Once you have received the initial confirmation about the bearish by using the Parabolic Sar Trend Scalper Trading System, you can set the sell order. Place your sell limit order 1 pip below the 100 periods moving average. The stop loss will be 10 pips and the take profit will be 20 pips. During the placement of the limit order, the color of bars in the colored MACD must be red. And these red bars must be placed below the reference line. Make sure that the trade is placed by using the standard rules of money management. If you ignore the basic rules, it will be hard to protect the trading capital at the initial stage.
One of the most vital parts of the trading profession is the trade management section. The more skill you have the better you will become at managing the trades. And eventually, it will tremendously increase your win rate. While using the Parabolic Sar Trend Scalper Trading System, think twice about the risk factor. If the risk factor exceeds 2% of your account balance, it will be a tough task to overcome frequent losing orders. Since the Parabolic Sar Trend Scalper Trading System often creates multiple trading opportunities at the same time, it is better to risk 1% while executing multiple trades. Learn to scale the lot size and risk factor in a smart way.
Some of you might become aggressive while using the Parabolic Sar Trend Scalper Trading System. But aggressive approach at trading can make you frustrated within a short time. To make yourself comfortable, you must learn to control the emotions. Though this scalping system is highly reliable still you need to strengthen control over your emotions. Failing to act smartly can place you in a very uncomfortable situation.
Becoming a professional scalper is not a dream anymore. This guide is enough to push yourself into the successful trader’s community. But make sure you follow the exact steps mentioned in this article all the time. Failing to adhere to the steps mentioned in this article will also create the problem of overtrading. To maintain strict discipline while scalping, some of the experienced traders often relies on the old fashioned trading journal. Once you develop the habit of following a paper-based trading journal, it will be an easy task to manage the risk profile in each trade.
Experienced traders often trade cross pairs and other trading instruments by using this amazing Parabolic Sar Trend Scalper Trading System. While trading the cross pair, you have to sync this system in the demo environment. The reason to pick the three major assets is to make yourself familiar with the trading system. Once you become familiarized with the trading technique, you can move to other trading instruments. But we highly recommend the retail traders to stick to AUDUSD, GBPUSD, and EURUSD pair for the first year. This should reduce the stress in the learning stage and provide an easy path to develop your skill as a retail trader. Last but not the least, never lose hope in this system due to few losing orders.
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