Volatility Scalping System For MT4

Volatility Scalping System For MT4

Table Of Contents:

  1. Volatility Scalping System For MT4
  2. The volatility scalping forex trading system – Long positions
  3. The volatility scalping forex trading system – Short positions
  4. Is the volatility scalping forex trading system good for you?


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 Volatility Scalping System For MT4 , as the name suggests is a trading strategy that is suited for scalping the markets, based on volatility. Volatility in trading is defined as a measure of how far price can move from its mean. There are a number of indicators that measure volatility. Some of these include the Bollinger bands, the average true range and so on.

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However, interestingly, the volatility scalping forex trading system does not make use of any of these indicators. The template set up is quite simple and none of the indicators in the volatility scalping forex trading system tells you that it is indeed a volatility scalping trading system.

The main indicators on the price chart is the 30 period exponential moving average and an 11 period simple moving average. Both these moving averages are set to the closing prices.

We also have the pivot indicator on the price chart. The pivot indicator serves the purpose of setting up the price levels for take profit. Given that the volatility scalping forex trading system is an intraday trading system, it is to be used on the 15 minute chart time frame or lower.

In the sub window of the volatility scalping forex trading system, we have a so called custom volatility indicator. This indicator basically works like an oscillator. When it rises, the indicator changes color to green. And when the oscillator falls, it changes color to red. On top of this volatility indicator is the moving average indicator. This moving average is set to a three period smoothed moving average.

When you look at the sub window, you basically have two indicators that overlay each other. When the volatility indicator moves above the moving average line and it turns green, we have the bullish buy signal. Likewise, when the volatility indicator cuts below the moving average, the volatility indicator turns red.

We feel that there is no need for the moving average as the volatility indicator on its can signal the buy and sell set ups. Not much is known about how the volatility indicator works. This indicator comes with a bunch of various settings. In some ways it looks similar to a Stochastics or an RSI oscillator. The volatility indicator moves around the 0 level and up to the 14 level. Just by looking at the changes in the color of the indicator, it will tell you if the markets are bullish or bearish.

Thus, combining all the above indicators, we have the volatility scalping forex trading system. Let's now take a look at how we can trade using the volatility scalping forex trading system.

The volatility scalping forex trading system – Long positions




To take long positions using the volatility scalping forex trading system, we begin with applying the template to the chart of our interest. Following this, we should first wait for the two moving averages on the price chart to signal a bullish market condition. This means that the faster moving average should cross above the slower moving average.

Once the market is bullish, we then look to the sub window. Here, we want to see the volatility indicator turning green. Of course, the volatility indicator should also be above the moving average line, which is the case most of the time.

Finally, when the conditions are met, you can then place a long position at the open of the next candlestick. Look to the recent swing low points to set up your stop loss level. Looking to the intraday pivot levels, you can then use one of the resistance levels as the potential take profit levels for your trade.

There is the possibility that you could also keep an open position. This way, when the trends are strong, you are able to continue to book profits as and when the market trend continues.

The volatility scalping forex trading system – Short positions




To take short positions using the volatility scalping forex trading system, we begin with applying the template to the chart of our interest. Following this, we should first wait for the two moving averages on the price chart to signal a bearish market condition. This means that the faster moving average should cross below the slower moving average.

Once the market is bearish, we then look to the sub window. Here, we want to see the volatility indicator turning red. Of course, the volatility indicator should also be below the moving average line, which is the case most of the time.

Finally, when the conditions are met, you can then place a short position at the open of the next candlestick. Look to the recent swing high points to set up your stop loss level. Looking to the intraday pivot levels, you can then use one of the support levels as the potential take profit levels for your trade.

There is the possibility that you could also keep an open position. This way, when the trends are strong, you are able to continue to book profits as and when the market trend continues.

Is the volatility scalping forex trading system good for you?


In conclusion, the volatility scalping forex trading system is a very simple forex day trading system. It makes use of the trend indicators on the price chart and a custom volatility indicator in the sub window.

The trading set up is simple and the pivot levels act as potential price levels where you can book profits. There is not unique about the volatility scalping forex trading system. The template itself is very light weight. So you can use the volatility scalping forex trading system on multiple charts simultaneously.

We find that using the volatility scalping forex trading system on commodity CFD's and on good trending currency pairs to give an edge. Given that the volatility scalping forex trading system is ideally suited for trading volatility, trends form an important aspect of this trading strategy.

Due to the fact that the volatility scalping forex trading system is used only on the short term intraday charts, swing traders will find this trading system to be useless. of course, you could remove the pivot indicators and completely turn this trading system into something else.

Download the complete system description and the files here:

FREE Volatility Scalping System

Download the FREE Volatility Scalping System for MT4.

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