Scalper Channel with Filter Trend Strategy For MT4
Table Of Contents:
- Scalper Channel with Filter Trend Strategy For MT4
- Selecting the trading instrument
- Scalper Channel with Filter Trend Strategy For MT4 - Long trade setup
- Scalper Channel with Filter Trend Strategy For MT4 - Short trade setup
- Trade Management
- Scalper Channel with Filter Trend Strategy For MT4 - Conclusion
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 Scalper Channel with Filter Trend Strategy For MT4 is extremely popular among the intermediate traders. In fact, many experienced traders position traders often uses this scalping system to book quick profit from the market. The strategy comprises of channel filter, filter trend, and the Bollinger band indicator. Since this is a scalping system, the rookies often get confused seeing the simple nature of this strategy. If you ever get the chance to look at the trade setup of professional scalpers, you will notice that they are using very simple techniques to take the trades. There is nothing wrong to use a simple system to earn money. But when you rely on a simple strategy, you must be extremely cautious with your trade execution process, and only then you can expect to earn consistently.
Successful investors often consider the Scalper Channel with Filter Trend Strategy as a golden system to take trades in 5 minute and 15-minute chart. However, when the market volatility is a bit higher, you can use the system to analyze the M30 chart. While using this scalping method, you should carefully determine the exit points for each trade. Usually, the trades are closed within 1 hour. So, try not to use the system when you use have a high-impact news release in the upcoming hours. Since the system uses tight stop, it is better not to participate in news trading.
Selecting the trading instrument
Scalping is all about precision. Failing to adhere to the basic rules of investment business will generate frequent losing trades even though the Scalper Channel with Filter Trend Strategy has a very high win rate. Experts are concerned about the minor details so that they can win more trades and maximize the profit. In order to scalp like an experienced trader, you have to select your trading instrument wisely. On average, the stop loss will be 5-6 pips while using this scalping system. So, it is better not to trade in cross or exotic currency pairs.
Elite traders usually look for the trade signals in the major currency pairs. But those who have less than one year of trading experience should look for the trade signals in the GBPUSD, AUDUSD, and EURUSD pair only. Compared to the price movement of the other currency pairs, these assets tend to exhibit stable price movement. Moreover, the false spikes are nearly absent in the lower time frame. However, these pairs can be extremely unstable and show extensive false spikes during the news release. So, avoid trading these pairs during economic news releases.
Scalper Channel with Filter Trend Strategy For MT4 - Long trade setup
To take the long trade by using the Scalper Channel with Filter Trend Strategy, traders have to cautiously find the major support level. The support level can be identified by using the channel scalper and the Bollinger band. But we will be using the channel scalper as a confirmation tool and the Bollinger band will act as the buying zone. Look for a bullish bounce at the price at the lower band when the Bollinger band. Bullish bounce means, the price will test the lower band and have a closing above the lower band. As you notice spot the bullish candle at the support level, wait for the filter trend indicator. If you spot green bars at the indicator panel, you can take a long trade.
For the stop loss, set it below the low of the bullish candlestick. But make sure it is not exceeding 7 pips and must not be above the lower Bollinger band. Keep the trade open as long as the golden line segment created by the channel scalper is present. But do not close the trade with less than 14 pips profit. Failing to maintain a minimum 1:2 risk to reward ratio can cause a major problem. In fact, it will make things hard while recovering the losses. Though the Scalper Channel with Filter Trend Strategy is a superb scalping system, still you have to follow some old rules of money management to ensure your survival in the trading industry.
Scalper Channel with Filter Trend Strategy For MT4 - Short trade setup
Smart traders must have guessed how they should take the short trade. But in this segment, we will be using some advanced techniques to improve the efficiency of the Scalper Channel with Filter Trend Strategy. Identify a downtrend and look for the rejection of the top Bollinger band. Usually, bearish pin bar, evening star, or the engulfing pattern informed at the resistance. At times, you might have to look for the break of the inside bar pattern to take the short trade. Note that the bars in the filter trend indicator must be colored in red or else you should not take any short trade. And do not forget the fact, the Scalper Channel with Filter Trend Strategy often generates losing trades. So, follow proper risk management in each trade to protect the capital.
Usually, the SL placed 1 pip above the high of the bearish price action signals. The traders keep their trade open as long as the yellow line segment drawn by the scalp channel indicator stays above the candlestick. If the price breaks above the yellow line segment inside the Bollinger band channel, you should close your short trade immediately. Though this approach can significantly improve the risk to reward ratio for the trades, it requires constant monitoring of the chart. Many traders feel uncomfortable with the manual closing method of the trades and they focus on fixed 14 pips TP. But increase the TP when you feel the average volatility is a bit higher than the usual.
Trade Management
Managing the trades while using the Scalper Channel with Filter Trend Strategy is fairly an easy task. If you follow the tips mentioned in the long and short trade setups segment, you will be fine with the system. However, you need to know some advanced risk management techniques since the market nature is extremely complex. If you open more than one trades, the lot size for the new trades should be much less. For instance, if you risk 2% in the first trade, you should be risking 1% in the second trade. In short, the overall risk factor should never exceed 3% of your account balance.
During the news event, avoid taking the trades. Study the price behavior of the major asset in such events so that you can realize the extreme nature of the market. There is nothing wrong to ignore some of the trade signals while using the Scalper Channel with Filter Trend Strategy. In fact, having the ability to filter the potential trades at the most complex state makes you more profitable in this industry.
Scalper Channel with Filter Trend Strategy For MT4 - Conclusion
Professional traders always focus on precision. You need to follow every step mentioned in this article. You might think following all the details is not necessary. But if you do so, it is just a matter of time before you start losing money. In general, the win rate for the Scalper Channel with Filter Trend Strategy is pretty high. You can expect to win more than 75% of the time just by having basic knowledge about the system. As you gain experience, you will slowly learn to improve the trade accuracy and this will also increase your potential earnings.
Never look for big gains by increasing the lot size. You have to remember, the system can generate losing trades at any instant without giving any prior signal. The only way you can stay in the investment business is by following strict trade management rules. Develop strong discipline and never become upset with the losing trades. Analyze the losing orders and try to find your problems. Lastly, have confidence while you use the Scalper Channel with Filter Trend Strategy to scalp the market.
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