Schaff Scalping Trading System For MT4
The Schaff Scalping Trading System For MT4 is one of the most advanced scalping systems in the Forex market. The trades are executed with a stunning 1:4 risk to reward ratio and this is what makes the system so popular in the trading industry. Moreover, the system uses simple Schaff Trend, Schaff MACD, and HMA rnp indicators to analyze the price pattern. In general, traders expect to evaluate the trade signals in 1 minute or 5-minute chart to scalp the market. But we have an exception for this strategy. We need to look for the trade signals in the 15 minute or 30-minute chart only. Many professional traders integrate price action (PA) signals to this method as it significantly improves the win rate.
After seeing the template setup, you may be wondering the system is very easy to use. But don’t get fooled since all these indicators have some advanced use. Failing to take the accurate reading from the indicator will result in big losses. Those who have basic skills should draw the SR level manually and see if this level matches with the automated pivot levels. Things might be a bit confusing to the rookies but they can always take things in the demo environment. In fact, everyone should learn to use a new system by using the demo account as it eliminates the risk of losing money in the learning stage.
Selecting the trading instrument
Selecting the trading instrument for the Schaff Scalping Trading System is a very tough task for rookies. You can’t jump into the trading business by deploying this powerful strategy. Professional traders usually look to take the trades in major currency pairs. The price movement of the major currency pairs is much more stable and offers less spike. Moreover, the spread in the major currency pairs is relatively low which eventually cuts down the cost of trading. Since the Schaff Scalping Trading System is designed to take the trades for a quick profit, you have to very precise with your actions.
At times, traders get confused as they had to deal with the low volatility period. In that case, the spread becomes high and it becomes a tough job to secure a 1:4 risk to reward ratio. The only solution to this problem is to trade the major asset only during the active trading hours. Trying to take the trades in the inactive trading session can lead to big losses. But you should not take the trades right before the economic news release. News factor can cause unexpected volatility and wipe the tight trades due to the use of tight stop loss. So time your trade properly by considering the average volatility and schedule of the economic news.
Schaff Scalping Trading System For MT4 - Long trade setup
The Schaff Scalping Trading System provides a powerful solution to take the long trade. Look for the bullish bounce in the price at the horizontal support level drawn by the all pivots V2 indicator. The rejection level should also match with the HMA level. This means the distance between the support line and the HMA line will be very less. Note that the color of the HMA must be green since you are going to open long order. At the STC color indicator, you will notice the signal line has crossed the 10 levels and changed its color to green. The green color rising signal line suggests the price is ready to move to a new high.
Schaff Scalping Trading System For MT4 - Short trade setup
Now we will discuss the process by which we can take the short trade. In this method, we will be using the bearish pin bar and the engulfing pattern. Look for this bearish price action signal at the HMA signal line. The color of the HMA signal line must be red and the slope will be negative. In the ideal case, the bearish candlestick will test the resistance level drawn by the auto pivot V2 indicator. As you successfully locate the bearish price action signal, take confirmation from the STC color indicator. The signal line will fall below the 90 levels by changing its color to red. Prior to the rejection take place, you should notice a bearish cross in the MACD signal lines.
At the Schaff MACD indicator, you should see the blue lines falling below the red line. Fresh pink bars will be formed on the negative side of the 0.0 line. Execute the short trades with a stop loss above the high of the bearish pin bar. And the take profit will be set based on a 1:3 or 1:4 risk to reward ratio. If the tail of the pin bar is very big, the stop loss points will be relatively higher. In such a case, you can wait for a minor bullish correction in the price so that you can use a tight stop loss. And always remember, Schaff Scalping Trading System is not going to generate 100 percent profitable trades. So, keep the risk factor below 2% of your account balance in each trade.
Professional traders know the importance of using proper risk management policies. They never break the 2% rule of money management as it holds the power to protect their capital. As you trade more, you will become more confident in using the Schaff Scalping Trading System. Soon you will be having multiple open trades. One thing trades forget that if they risk 2% in each trade and open three 3 trades, they are actually risking 6% of their account balance. So, cumulative risk factors should be considered while using the Schaff Scalping Trading System to deal with multiple trades.
Those who will be using the price action signal to take the trades at the major resistance must evaluate the trade setups in the most stable hours. Some of you might not wait till the closing of the candle. Instead of rushing into the trades, wait for the full formation of the bearish pin bar or the engulfing pattern. This will protect you from many false signals. And always expect to lose money from the best signals. Once you develop the habit of trading with a low-risk profile and maintain a standard risk to reward ratio, it will be an easy task to boost your skills.
Schaff Scalping Trading System For MT4 - Conclusion
You might have the best trading system in the world, but without having strong perseverance, you won’t be able to change your life. Many novice traders have purchased the top class trading strategies and failed miserably. As a new user of the Schaff Scalping Trading System, you have to devote yourself and learn the basic details of the market by analyzing the important market details. If you find it hard, learn things in the demo environment. And do not expect to make money from all the trades. You have to follow the mentioned steps in this article and only then you can expect to succeed.
At times, the system will generate series of losing orders. This is absolutely normal and you should stick to your normal strategy. However, some experts suggest lowering the risk factor by 1% when they are having frequent losing orders. As the price movement in the major currency pair stabilizes, you will again have consecutive winners.
Download the complete system description and the files here: