Scalping with I-Regression Trading System For MT4
The Scalping with I-Regression Trading System For MT4 is a very popular scalping system by which you can scalp in the 5-minute chart or in any higher time frame. But the absolute beginners are advised to use this system to take the trades in the hourly chart only. Choosing the 1 minute or the daily chart requires an extreme level of patience and strong skills about this market. Linear regression channel, entry trigger, and colored MACD are the prime indicators used to develop this system. The function of these indicators is very easy to understand and investors with the basic knowledge can significantly improve their performance just with the help of this unique strategy.
After installing the template, some arrow marks in the main chart and a color MACD indicator window. Since the strategy depends only on I regression channel to determine the dynamic support and resistance, it better to use the manual SR level to reinforce your trading idea. While finding the SR levels in the main chart, make sure you are not forcibly drawing the support and resistance to match it with I regression level. Use basic steps to draw the SR levels and you don’t have to match it with the channel. Once you become comfortable in finding the support and resistance, you can take help from the Scalping with I-Regression Trading System.
Selecting the trading instrument
This is the trickiest part of using this trading strategy. Most people don’t have any idea that the selection of the trading instrument plays the most important role in the trade execution process. Since this is a scalping system, you should be aware of the market spread. And if you intend to trade in the choppy market, you won’t get any better results. To improve your trading process, focus on the major currency pairs. One of the key benefits of choosing the major currency pair is price stability and tight spread. However, you should not use the Scalping with I-Regression Trading System to take any trade right before the major news release.
While choosing the trading instrument, make sure the certain asset has no scheduled news release in the next 2 hours. News event usually causes the spread to get bigger and you will notice many false spikes. To avoid such a problem, traders pick their trading instruments based on trading sessions. Once you become comfortable in selecting the instrument based on spread and news events, you can easily trade on any trading instrument. But if you chose to trade in the cross, make sure you don’t open more than one trades since this asset can be extremely volatile and cause decent slippage.
Scalping with I-Regression Trading System For MT4 - Long trade setup
Smart traders must have guessed that to find the long entry, identification of the support and resistance level should be the first step. Usually, the resistance levels are used when the bulls manage to break above that level. Considering yourself as an entry-level trader, we will teach you the proper way to take the long trades at the support level. As the price test the support zone, the candle should have a bullish closing. Note that the support level which you have drawn, must match with the lower or the mid band of the I regression channel. And try to look for the buying signal when the I regression channel is in the positive slope.
Below the bullish price action signal, you should notice a small black arrow mark. The black arrow gives us confirmation that the price will move to a new high. But we need to get further confirmation from the Real MACD Colored indicator. Green bars should be present at the positive side of the indicator which is the strong signal that the momentum of the market is bullish. Execute the long order with 10 pips stop and 30 pips take profit. But if you chose to trade in an hourly chart, you can set the SL to 15 pips and the TP will be 45 pips.
Scalping with I-Regression Trading System For MT4 - Short trade setup
We have described the use of the Scalping with I-Regression Trading System in the most conservative way in the long trade setup section. But now, we will teach you the advanced use of this indicator. Find the major resistance level in the 5-minute chart and wait for the price to test that level. As the price test that level, you should be looking for the bearish pin bar or the doji pattern. After spotting the bearish price action signal, you must see a pin color arrow above the candle. Failing to find the pink color arrow will invalidate the sell signal. Note that this pink color arrow will formed near the top of the regression channel or at the mid band.
Let’s say you have spotted the perfect bearish signal along with the pin color arrow on the top. Now have a look at the real colored MACD indicator. You should be seeing red bars on the negative side of the indicator panel. Since you preferred time frame is 5 minute, the spread for the trading instrument must be less than 3 pips. Take your short trade with a stop loss right above the high of the bearish price action signal. For the take profit, use a 1:3 risk to reward ratio to determine the exact exit point. However, you should carefully evaluate the support level since if you place the TP below the support level, you might lose money from that certain trade while using the Scalping with I-Regression Trading System.
You might be wondering that the system is very easy to use and you will be able to change your life within a short time. But this is not how the professional traders. They focus on their losers and bring necessary change to their risk management policy. For instance, if you intend to trade with 1% risk, you are allowed to have 2 trades open. But if you trade with 2% risk, you can have 1 trade open in the market. In short, the maximum risk exposure while using the Scalping with I-Regression Trading System will be 2% of your account balance. If you increase the risk factor, get ready to blow up your trading account in a short time.
Regarding the news event, the novice traders often think news factors will give them the unique opportunity to make a big profit. You have to keep in mind, the Scalping with I-Regression Trading System is not designed to deal with the news data. If you intend to trade news with this method, you must blend the fundamental data with this system. And this needs to be done in the demo environment only. After learning to blend the news data into the system, you can even trade major news with this system.
Scalping with I-Regression Trading System For MT4 - Conclusion
Professional traders are always prepared to deal with the uncertainty. To them, finding good trade is easy but managing the running orders is tough. You must be strict to your rules and only then you can expect to make decent progress by using this unique trading method. There are two important steps to become successful by using the Scalping with I-Regression Trading System. Firstly, you must find the major support and resistance level no matter which time frame you intend to trade. The second thing, never to take the trades without getting confirmation from the trade trigger and real MACD colored indicator.
Those who will follow the exact steps mentioned in this guide can expect to make a decent profit by using this system. In general, the system has a more than 75% win rate which eventually gets better as the traders learn more about the market. At times, you may get extremely confident with this system and take high risks ignoring all the basic rules of money management. This is where you need to control your emotions. Always follow strict discipline as it is the only way by which you can protect your capital.
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