Power Trade Formula Scalping Strategy For MT4

Power Trade Formula Scalping Strategy For MT4

Table Of Contents:

  1. Power Trade Formula Scalping Strategy For MT4
  2. The Power Trade Formula Scalping Strategy For MT4 – Long positions
  3. The Power Trade Formula Scalping Strategy For MT4 – Short positions
  4. Is the Power Trade Formula 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 Power Trade Formula Scalping Strategy For MT4 is a forex trading system that allows you to capture short term trend based movements in the market. This trading system makes use of some of the common indicators that are quite commonly used for capturing the trends in the market. Overall, the look and feel of the power trade formula scalping trading strategy is quite OK. The charts are not that cluttered.

On the main price chart, we have the visually standing out indicator called the Heiken Ashi indicator. This indicator visually depicts the short-term trends in the market by changing its colors. Some traders consider that this candlestick also cuts out the market noise. However there is no clear evidence about it except for the fact that the candlesticks can either print in red or blue.

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On the main price chart, we also have the T3 moving average indicator. This moving average indicator changes colors from red to blue and vice versa depending on the uptrend or the down trend in the market. This is a very short term moving average and therefore you will see multiple buy and sell signals that might appear. Traders need to bear this in mind and find some kind of a filter to avoid false signals.

Then we also have the support and resistance indicator that is plotted. This is based off the fractals indicator of. Traders can use this support and resistance level as potential take profit levels for their trades if they want to. However, in the trading rules identified in this trading strategy, we do not make use of these support and resistance levels. It can be very subjective.

In the first sub window of the power trade formula scalping trading strategy, we have a custom indicator called the WA explosion indicator. This indicator is similar to the volume indicator with a moving average. However, we do not utilize any signals from this indicator as volume is not a good indicator in the forex markets. In the second sub window of the power trade formula scalping trading strategy, we have the RSI filter indicator.

This is a custom indicator that makes use of the RSI as its input. It merely changes colors from red to blue and wiser words are depending on the trends. There is nothing unique about this indicator. Let's now take a look at how you can trade long and short positions using the indicators in the power trade formula scalping trading strategy.



The Power Trade Formula Scalping Strategy For MT4 – Long positions




In order to take a long position using the power trade formula scalping trading strategy, we need to look for evidence of a uptrend to emerge. This means that we need to wait for the Heiken Ashi candlesticks to change colors from red to blue. When the candlesticks change colors, you will already notice that it is trading above the moving average line. This line will already turn from red to blue.

Once this happens, you can take a long position at market. Set your stop loss to the recent swing low that formed. Calculate your risk to reward ratio and set your take profit level accordingly. Alternately, look to the previous downtrend that emerged and set your take profit level to the first red Heiken Ashi candlestick that formed.

Make sure, that when your long position is triggered the RSI filter indicator in the first sub window is also blue. This acts as a trend confirmation indicator. However, you should note that this is a bit lagging. There for the colors might not change at the same time as the candlesticks do.



The Power Trade Formula Scalping Strategy For MT4 – Short positions




In order to take a short position using the power trade formula scalping trading strategy, we need to look for evidence of a downtrend to emerge. This means that we need to wait for the Heiken Ashi candlesticks to change colors from blue to red. When the candlesticks change colors, you will already notice that it is trading below the moving average line. This line will already turn from blue to red.

Once this happens, you can take a short position at market. Set your stop loss to the recent swing high that formed. Calculate your risk to reward ratio and set your take profit level accordingly. Alternately, look to the previous uptrend that emerged and set your take profit level to the first blue Heiken Ashi candlestick that formed.

Make sure, that when your short position is triggered the RSI filter indicator in the first sub window is also red. This acts as a trend confirmation indicator. However, you should note that this is a bit lagging. There for the colors might not change at the same time as the candlesticks do.



Is the Power Trade Formula Scalping Strategy For MT4 profitable?


In conclusion, the power trade formula scalping trading strategy falls short of expectations despite using quite a few of the indicators that can be used in building a rather powerful forex trading strategy. If you observe this trading strategy for a while, you will notice that when the markets are moving in a sideways range this trading system totally fails.

We attribute this due to the choice of indicators that are used. Although in the charts in this article, the long and short positions are quite easily identifiable bear in mind that this is done only in hindsight. Therefore, in the real time markets when you have a position open, you will not know if it will close in profit or not because it entirely depends on the trend in the markets will stop.

Given the shortcomings of this trading strategy, we do not recommend that beginners should be using this trading system. Focus needs to be given on the risk management aspects as well of your trade when using the power trade formula scalping trading strategy.

The trading system itself comes with a lightweight template. There are in fact two templates that you can use. However, we don't find that neither of these templates give a real edge in the markets and neither are there any different from each other. At the end of the day trader should observe this trading strategy and make a decision for themselves on whether they want to use this trading system or not.

Download the complete system description and the files here:

FREE Power Trade Formula Scalping Strategy

Download the FREE Power Trade Formula Scalping Strategy for MT4.

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