X-scalper Strategy For MT4
Table Of Contents:
- X-scalper Strategy For MT4
- X-scalper Strategy For MT4 – Long positions
- X-scalper Strategy For MT4 – Short positions
- Is X-scalper 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 X-scalper Strategy For MT4, as the title suggests is a supposedly forex scalping trading system. However, this trading system doesn't really make use of any unique indicators that would give it a real edge in the markets. On the contrary, we find that this trading system is rather disappointing due to the fact that the chart is quite cluttered.
The X-Scalper strategy makes use of mostly standard indicators. As you can see from the charts above, the main indicator is the Bollinger band indicator. This indicator makes use of the standard settings of 20 with two standard deviations. The Bollinger band indicator as you know is used as both a trend and volatility indicator. Breakouts can happen when there is a Bollinger band squeeze meaning that the bands tend to contract. Following this short contraction, which indicates a sideways market movement, there is a rather strong breakout following this Bollinger band squeeze.
In addition to the Bollinger band indicator, the X-Scalper strategy makes use of five period moving average indicator as well. This moving average indicator is depicted by the yellow thick line. One could probably look at the bullish and bearish crossovers between the five period moving average and the middle Bollinger band which is in effect a 20 period moving average.
The X-Scalper Strategy also makes use of the stochastics oscillator which comes with the settings of 14, 4, 4. This stochastics oscillator moves between the fixed values of 80 and 20 and thus signals overbought and oversold conditions in the market. Traders can look at the price action itself and the way it is interacting with the Bollinger bands and the moving averages and take a cue from the stochastics oscillator in order to pick up turning points in the markets.
In the next sub window of the X-Scalper Strategy, we have a custom indicator called the premium FX scalper. This indicator is responsible for plotting the histogram bars which tend to rise and fall depending on how the market momentum is going. The histogram bars can change colors from green to red and vice versa.
This second indicator is also responsible for plotting the market information on the price chart on the top right corner. We do not really find much need for this indicator and the fact that it clutters the chart only makes it worthless to use in this trading system. Therefore, traders who want to can remove the second indicator in order to keep their charts a bit more clearer. Finally, the price chart itself is made up of the Heiken Ashi candlesticks. These candlesticks come with the purpose of showing the trends in the market. Therefore traders can combine the above information in order to find potential trading opportunities.
Let's now take a look at how you can trade long and short positions using X-Scalper strategy for MT4.
X-scalper Strategy For MT4 – Long positions
To take long positions using the X-Scalper strategy, the first thing to do is to look for the Heiken Ashi candlestick to turn white. After this, you will see that the moving averages make a bullish crossover. You should now take a long position at the market and set your stop loss to the recent low of the last red Heiken Ashi candlestick.
It would be ideal that the Bollinger bands also make a contraction which can suggest that there will be a market breakout in the short term. With your stop loss already calculated you can set your take profit level to a fixed risk to reward ratio. Alternately if you want to capture a good part of the trend, then you could think of trailing stop loss across the lower Bollinger band.
It is also important to pay attention to the signals from the stochastics oscillator. In most cases, when you take a long position, the stochastics oscillator should be either moving out from the oversold levels which is below 20 or should have already moved out from this level. This will suggest that the market momentum to the upside will continue for a while.
X-scalper Strategy For MT4 – Short positions
To take short positions using the X-Scalper strategy, the first thing to do is to look for the Heiken Ashi candlestick to turn white. After this, you will see that the moving averages make a bearish crossover. You should now take a short position at the market and set your stop loss to the recent high of the last white Heiken Ashi candlestick.
It would be ideal that the Bollinger bands also make a contraction which can suggest that there will be a market breakout in the short term. With your stop loss already calculated you can set your take profit level to a fixed risk to reward ratio. Alternately if you want to capture a good part of the trend, then you could think of trailing stop loss across the upper Bollinger band.
It is also important to pay attention to the signals from the stochastics oscillator. In most cases, when you take a short position, the stochastics oscillator should be either moving out from the overbought levels which is above 80 or should have already moved out from this level. This will suggest that the market momentum to the downside will continue for a while.
Is X-scalper Strategy For MT4 profitable?
The X-Scalper strategy falls short of the expectations. There is no big edge that would make this into a scalping strategy. On the contrary, given the choice of indicators used, traders might extend this into a swing trading forex system.
Given the fact that the most part of the trading system makes use of the standard indicators, the template that comes with the X-Scalper strategy Is lightweight. There for you could make use of this template to monitor multiple instruments at the same time. It is ideal that you should use this trading system on the 15 minute chart, but you could also experiment on the four hour chart time frame as well.
Overall, our conclusion is that there is nothing really great about the X-Scalper strategy. beginners might find it a bit interesting to trade with this trading system but up to a certain point, there is nothing quite unique that we can boast about.
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