Sedinho Scalper Trading System For MT4
The Sedinho Scalper Trading System For MT4 can easily provide a perfect guideline to novice traders to become a professional scalper. Unlike the super-advanced scalping system, this strategy focuses on the most basic elements of the market and finds the trade setups by using some of the smart indicators. These indicators are – MTF moving average with period 10, MA Cross OC alert, Color RSI V1. 01 and some embedded coding. After you load up the template, you will not find the colored RSI, instead, you will get advanced modified RSI with a level set to 30 and 70. This indicator will provide a better edge but those who feel comfortable with the colored RSI can use that tool.
In the main chart, the yellow color moving average is going to act as the key player. During the rising yellow color moving average, you should be expecting a strong uptrend. On the contrary, when the moving average will fall, you have to prepare yourself to take the short trades. The MA Cross OC alert indicator will create a blue and red arrow with a pop notification when the potential trade setups are formed. But to take your trade, you must take evaluate the position of the RSI signal line. Note that we will learn to use the RSI in a different format in this Sedinho Scalper Trading System. Now let’s see the key steps by which we will be taking picking our trading instrument.
Selecting the trading instrument
Many traders do not consider the importance of selecting the right trading instrument. They randomly pick different trading instruments and deploy the system. Unlike other traditional scalping systems, this strategy is designed to trade EURO related pairs. However, the experienced traders prefer to deal with the EURUSD, EURJPY, and EURGBP pair only. On the other cross of EURO, the price movement is very unstable and it is very hard to identify the trend due to the choppiness in the market.
The Sedinho Scalper Trading System might be designed to deal with specific sets of assets but you can significantly improve your execution by picking the best tradable asset in the above-mentioned three assets. Consider the existing trend and the economic news release. The market should in a strong uptrend or downtrend and there should be no high-impact news release during the time you execute the trades. And you should be taking the trades during the London trading session only as it will give you steady volatility which will eventually improve your potential chance to make more money. Now we will illustrate the process by which experienced traders use this system to open long and short trade.
Long trade setup
The long trades are usually taken when the price action takes place above the MTF moving average. The blue stair-like MTF ma works as a pivot level. If the price trades above it, you should be looking to take the long trades only. The second factor you should consider is the rising slope in the yellow color moving average. The yellow moving average tells us about the momentum of the market. But to take our trade, we need a test of the moving average and blue arrow. The blue arrow is automatically drawn by the MA Cross OC alert indicator showing the bulls have regained their strength.
After you have the basic confirmation, move the RSI reading to get the final confirmation. Right at the formation of the buying arrow mark, the RSI reading should touch the 70 lines. As long as the RSI signal line is showing a strong ascending pattern, you can take the long trade. The stop loss will be set below the low of the candle which bounced off the yellow moving average. The take profit for the trade will 25 pips. But note that you are not allowed to increase the risk by over 2% no matter how convincing the trade signal is. Keeping the risk exposure low is one of the most critical parts to make this trading system successful.
Short trade setup
So far we have discussed the traditional use of the Sedinho Scalper Trading System. Now we will move to the most advanced method by which highly talented traders trade the market. The market often forms a strong consolidation pattern for a prolonged time right at the MTF SMA moving average. It became very hard for the retail traders to determine the actual direction of the trend. Instead of looking for the trend, we will be waiting for the major break of the support level in the consolidated zone. As the price breaks the consolidation, the blue signal line will turn into strong resistance.
Usually, the bullish correction will take place after the break of the support line. The corrective move will end once the price test the blue line again. Look for the bearish action signal along with the red arrow created by the MA cross OC alert indicator. At the RSI reading, you should be seeing a sharp descending move in the signal line. Take your short trade with the stop loss 2 pips above the high of the bearish price action signal. The take profit will be 30 pips in this method. But for the risk factor, you need to lower it down to 1% of the capital.
The efficiency of the Sedinho Scalper Trading System will significantly hamper if you take the trades by breaking the rules. Due to the high success rate of this unique trading strategy, some of the retail traders prefer to trade with more than 3% risk. But they don’t understand the fact, the system is bound to generate some losing trades. The only way by which retail traders can manage their losses is by keeping the risk below 2% of their investment. And there is nothing wrong to trade with a 2% risk since you will be able to gain more than 4% from each winning trade.
After getting used to the Sedinho Scalper Trading System, investors often start overtrading the market. They overtrade since they think they can trade only in a limited number of assets. Some even try to trade in other currency pairs. By doing so, you are actually violating the most basic rules to use this system. Once you break the rule, the system will start to fall apart and cause you to frequent losing trades. You have to be calm and look for reliable trade signals with zero aggression. Trade with discipline and follow your risk management rules at any cost.
Professional traders are doing relatively well in the investment world since they care about their capital. The Sedinho Scalper Trading System is often considered as the system for the elite scalper but still, many traders struggle hard with this system. If you dig deep, you will notice most of them are not using the steps mentioned in this article in the correct manner. And if you follow the steps precisely, you will hardly find 3 trades each day. So there is no way you are going to overtrade while using this scalping system.
To test your skill, you can move to the demo account. Start using the blueprint for this strategy and see if you can make some decent profit without having any mental stress. Keeping your mind cool while scalping the market is important to your success. At times, you might feel restless and these are the moment when you need to move away from your trading station. You can even take a week break to regain your mental stability. But never try to earn money when you don’t have the mental stability to deal with the losses.
Download the complete system description and the files here: