Renko Scalp for Binary 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 Renko Scalp for Binary Strategy For MT4 is a professional scalping strategy mainly used by experts. But this system is now widely used by the amateurs after the strategy is compiled to a template. In the past, traders had gone under severe issues as they had to deal with the settings of a wide range of templates.
This issue now solved with the template and the traders will get the ready environment to take the trades. Renko scalp SMF, Renko Scalp Dot RNP, Bands, RSI filter 2 periods, Renko Scalp MS alert, MBFX Time, and Impulse indicator are the tools for this strategy. People who have fair skills in trading, know the hectic process to manage such a long list of tools.
Now we have the template and the only obstacles that will stand between you and the profit factor are the skills. Know the steps that are required to execute the trade with high confidence. If you can follow the steps with precision, you can expect to win more than 77% of trade. Such a high win rate is extraordinary especially when the system is based on short term price fluctuation.
Today, we will learn to take the trades in the 5-minute chart. Though we have the liberty to use any time frame this system works best in 5m and 15m chart. But don’t be naïve to take a high risk with this method just because the system uses many complex tools.
Losing trades will be common and you have to bear the losses along with the path to becoming a skilled trader. For now, let’s know the steps to find the selling and buying opportunity.
Long trade setup
Those who are shivering by seeing such variants in the tools have nothing to worry about. We will describe the process in such a unique way so that you won’t have to lose any trade due to strategic error. Strategic error is a very common problem when traders get involved in a complex system. But this can be overcome by diving the steps in an organized way.
The Renko scalp indicator forms a red shooting target pattern at the bottom of the candle when the price doesn’t have any interest to go lower. At times, the red target pattern is formed below the band support but consider the drop of the price as a false break. The price will eventually enter the band and the MBFX timing indicator will show buying signal. The signal line will turn to yellow from red and hit the bottom.
The tradition suggests the bulls are becoming strong. Wait for the next transition that means the signal line will become blue. A big parabolic blue SAR dot will form below the chart and the price will slowly start to climb to the band resistance.
We have to wait for the confirmation at the impulse indicator. Open the buy order when the impulse indicator creates a blue bar. We will notify the MBFX signal line is testing the mid reference level when the price is ready to push to a higher level.
Short trade setup
For the short trade, we will teach you a different method so that you can use a bit more aggressive entry. First, find the green Renko mark at the top of the candle. Usually, the green Renko shooting mark will form at the band resistance. The signal line of the MBFX indicator should be above the 90 levels.
This indicates the asset is trading in the overbought zone. You should see the purple dot of the parabolic SAR indicator. The purple dot tells us the price of the asset is going for a big bearish dive. But we have to take the confirmation from the impulse indicator. But for this method, we won’t take the confirmation and short the asset at the first dot of the parabolic SAR.
Ignoring the confirmation from the impulse indicator makes our filtering process a bit weaker but we can offset the problem by choosing the stable time. That means we won’t be taking the trades during the news time or the volatile trading session. This method will work only if the volatility of the market is stable and providing us strong signals. For the stop loss, it will be placed above the resistance line or the band.
And the take profit is set according to the SL level. This is the place where things get clumsy. This scalping system can be used with fixed SL and TP but having a bit more advanced knowledge on the SR zone, can improve the RR ratio.
Let’s learn the trade management parameters in details in the trade management sections. Remember, the system can be very accurate but still, it will have losses. So, go through the trade management portion with care.
Managing the trades
Managing the trades is always a tough task when we have to deal with the scalping system. The scalping method creates massive confusion among the traders. Traders who have less than 1 year of trading experience should use 18 pips stop and 36 pips Tp. But if the traders are taken in the indices, the traders have to cautiously use the stop loss.
The highs and lows of the candles that create the buying and selling signal should be used to determine the SL levels. For the TP, the traders can stick to the trade for the next 5 -8 candles or they can use the SR levels to set the fixed TP. The risk to reward ratio in stock trading must be greater than 1:4. For the currency market, the minimum risk to reward ratio is 1:2. The reason we chose 1:4 risk to reward ratio in stock trading is to improve your recovery factor.
The price is very volatile and it gives the traders strong signals to buy or sell the asset at the most important levels. So, be concern about the trade management parameters as it will determine the take profit and SL levels of the system. And stop choosing the market that shows choppy behavior.
The choppy market can be very tricky to trade and requires a PA pattern. Unless you do have the skills to analyze the PA pattern, opening trades at the choppy market is going to be a deadly mistake. And for the risk exposure, each trade should have a maximum of 1% risk and for the stock, it should be lower than that.
Download the complete system description and the files here: