50 pips daily scalping Strategy For MT4

50 pips daily scalping Strategy For MT4

Table Of Contents:

  1. 50 pips daily scalping Strategy For MT4
  2. The 50 pips daily scalping Strategy For MT4 – Long positions
  3. The 50 pips daily scalping Strategy For MT4 – Short positions
  4. Is the 50 pips daily scalping Strategy For MT4 profitable?


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 50 pips daily scalping Strategy For MT4 is a short term trend following trading system. As you can see from the charts, this trading system looks to be very basic by using just moving averages and nothing else. While on one hand this can make the trading system look very simple on the other hand it is not a robust trading system. Because of this, traders need to bear this in mind if they wish to continue using this trading strategy.

The success of trading with the 50 pips scalping strategy basically depends on the traders experience level in the markets. As a result, you might notice that some traders will be able to make some profits while others may not.

The 50 pip scalping strategy is primarily driven by moving averages. Firstly, we have the yellow lines which are the five period smooth moving average set to the price high and the price low. These two moving averages combined form the price channel or the price band. These two moving averages can serve the purpose of signaling the short-term trends in the market.

The next main moving average basically comes from a custom indicator. This is known as the KAZi trend indicated. It makes use of a 130 period moving average. This moving average line behaves as a trend filter. However, at the same time, this main moving average line can also act as a potential take profit level.


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The remainder of the indicators used in the 50 pips scalping strategy are basically intraday pivot levels. These are the horizontal lines that you see on the price chart. They can be used for potential take profit levels as well. However, note that when there is a confluence between the five period moving average on the horizontal pivot levels, you will notice that it can form a strong resistance or a support area. We do not recommend that you should enter a trade in the opposite direction when you see such patterns occurring.

You might have noticed by now that the 50 pips scalping strategy lacks any indicators in the sub window. As you might know, any trading system that makes use of moving averages should also have a timing indicator or an oscillator which can signal the overbought and the oversold conditions in the market. This is critical to the success when trading with moving averages as such trading strategies do not work too well when the markets are in a sideways range. Therefore, there is a significant risk when you're trading with the 50 pips scalping strategy.

Let's now take a look at how you can trade long and short positions using the 50-pips scalping strategy for MT4.



The 50 pips daily scalping Strategy For MT4 – Long positions




Long positions in the market using the 50 pip scalping strategy can be taken when you notice that prices moving higher. In order for a long position to be taken, you should first wait for price action to signal that the trend is to the upside. This happens when you see an up pointing arrow on the price chart. The slope of the price channel should also be higher.

Now wait for price action to close above the price channel indicator and then take a long position at market. Set your first take profit level to the main moving average line which is represented by the thick blue moving average line. For your second take profit level, you can use one of the intraday pivot levels.

You can set your stop loss to the lower price channel when taking a long position. When the first target is reached, you should move your stop loss to break even to remove any risk from the trade.



The 50 pips daily scalping Strategy For MT4 – Short positions




Short positions in the market using the 50 pip scalping strategy can be taken when you notice that prices moving lower. In order for a short position to be taken, you should first wait for price action to signal that the trend is to the downside. This happens when you see a down pointing arrow on the price chart. The slope of the price channel should also be lower.

Now wait for price action to close below the price channel indicator and then take a short position at market. Set your first take profit level to the main moving average line which is represented by the thick blue moving average line. For your second take profit level, you can use one of the intraday pivot levels.

You can set your stop loss to the upper price channel when taking a short position. When the first target is reached, you should move your stop loss to break even to remove any risk from the trade.



Is the 50 pips daily scalping Strategy For MT4 profitable?


The construction of the 50 pip scalping strategy is rather simple. This trading strategy basically makes use of different moving averages. As you can see, there are some clear drawbacks in the setup of this trading system. The most important of all is the fact that the 50 pip scalping strategy works best only during trending markets. Therefore, when you see that the markets are moving in a sideways range, there will be lots of false signals.

Consequently, traders need to find a way to avoid the sideways markets. Unfortunately, when you are trading life in the markets there is no way of telling whether the market will continue to trend or if it will move to a sideways range. This is a risk that traders will have to take when trading with the 50 pep scalping strategy.

The fact that there is no oscillator which can allow you to time your trades makes it somewhat difficult. Therefore, experienced traders could look at adding custom indicators especially in the sub window in order to time their trades. While the 50 pips scalping strategy is simple in its logic, we cannot recommend this to beginners for the reasons mentioned.

The trading template that comes with the 50 pips scalping strategy is relatively lightweight and therefore can be used to monitor multiple instruments and charts at the same time. Bear in mind that this is a short term scalping strategy and therefore is applicable only on the intraday chart timeframes.

Download the complete system description and the files here:

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