Snake Borders Trading System For MT4

Snake Borders Trading System For MT4

 

Table Of Contents:

  1. Snake Borders Trading System For MT4
  2. Indicator Used and Time Frames
  3. Snake Borders Trading System For MT4 - Trading Strategy
  4. Long entry
    1. Stop Loss and Take Profit
  5. Short entry
    1. Stop Loss and Take Profit Settings
  6. Conclusion

 

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 Snake Borders Trading System For MT4 is the strategy for scalpers. This strategy makes use of the Snakes Borders Indicator, which resembles the Bollinger bands indicator but has a very different mechanism of action. The trader is aiming to catch a few pips when the markets move in a particular direction as dictated by the behavior of the price, in relation to the outer bands of the indicator.


FREE Snake Borders Trading System

Download the FREE Snake Borders Trading System for MT4.

To receive my email 100% sure: 
Put my email on your whitelist!

 

Indicator Used and Time Frames

 

The only indicator used for this strategy is the Snakes Borders indicator. The indicator resembles the Bollinger band indicator in appearance. It has two bands primarily, with a third band that appears when price has overreached beyond any of the two bands. This third band aims to capture the extreme of price that has slipped out of the bands.

The bands of the Snakes Borders indicator also show the squeeze and expansion characteristics of the Bollinger band indicator. These characteristics apply when price volatility shrinks (squeeze) and when the volatility increases (expansion). This strategy is only to be traded during the expansion areas, as this is where price volatility and movement is high enough to ensure that profits can be made. This strategy should never be traded during the squeeze periods.

The strategy can be traded on any currency pair. Time frames suited to this strategy are the short time frames. The M5 and M15 time frames work very well with this strategy.



Snake Borders Trading System For MT4 - Trading Strategy

 

The Snake Borders Trading System for MT4 relies on the Kaufmann indicator pointing out the direction via the cross of its white line above or below the magenta line. As it does this, the ABC pattern is detected by the ABC pattern indicator, and the confirmation is obtained from the cross of the FX Trender’s indicator line above or below the 0 line in the indicator window. These signals have to align to produce a signal that can be traded.

Usually, the white line of the Kaufmann indicator is required to have crossed the magenta line. What usually plays out is that the line curves back a little towards the magenta line as the price on the chart starts to retrace. The retracement entry is what is traded here. So this is a form of “buy on the dip, sell on the rally” kind of strategy, but on shorter time frames.

 

    1. Long entry

 

 

Taking the long trade opportunity requires following these simple steps.

 

 

    • Allow the Snakes Borders indicator to start to show expansion. It must either be coming out of a squeeze, or must start to show expansion.

 

    • Ideally, you should check to see the trend of the asset on the 4hour or daily chart. Remember, you are trying to scalp in the direction of the trend and not against it. The trend on the 4 hour and daily charts should be an uptrend.

 

    • Wait for the price to step out of the lower band of the indicator.

 

    • Then allow the price candles to retrace back into the lower band, and initiate a long trend from the bounce on the lower band of the Snakes Borders indicator.


    • Aim to take no more than 10-15 pips in profit. Anything more than this amounts to becoming greedy and this subjects your account to risk.


The chart below presents the buy trade setup for this strategy. There are at least 5 trade setups that presented themselves, by virtue of the price dropping below the lower band of the Snakes Borders indicator.



You can see that there are areas where signals were valid and other areas where they were not.

Stop Loss and Take Profit

This is a fast paced strategy that cannot work with large stops and profit targets. The stop loss for each trade should not be more than 5 pips. You may decide to stretch it towards 8 pips, but not more than this because of the way the profit targets will be placed.

In setting the Take Profit price level, you cannot use a static profit target. Once the trade has moved 8 pips in profit, quickly adjust the stop loss to the entry price to cut the risk of the trade to zero. Allow the trade to get to 10 pips, and then you take the profit instantly. There may not be room to use a previous resistance to set the TP level, but you can use the highs of the most recent short-term candles as a guide.

 

  1. Short entry

 

Here is what to look out for to enable you scalp short trade setups.

 

    • The Snakes Borders indicator should have started showing expansion or should be out of a squeeze, which guarantees you have the volatility required to make a profit..

 

    • Check to see that there is a downtrend on the 4hour or daily chart so your trade aligns with the direction of the trend and not against it.

 

    • Wait for the price to step out of the upper band of the indicator, then allow the price candles to retrace back into the upper band.


    • Initiate a short trend from the candle rejection at the upper band of the Snakes Borders indicator, aiming to take no more than 10-15 pips in profit.


The chart below shows what the trade setup looks like. As expected, there was a situation where the trade did not play out as expected and ended up being a loser. However, other trades covered up for this situation and turned out as expected.



You can see that the invalidated trade did not give enough room to meet the 10-pip profit standard before it retraced against the trade and got to a level where it would have taken out the stop.

 

Stop Loss and Take Profit Settings

The SL should not exceed 5 pips; 8 pips should be the limit. Once the price has gone against the trade by 8 pips, there is no need to keep holding the trade. Quit the position and search for other opportunities.

The Take Profit setting requires dynamic action on the part of the trader. Aim for a profit of 10-15 pips. Once the trade has gone 8 pips into green territory, you can bring the SL to the entry price and follow the trade until it hits your target. There may be times you get 5 pips and decide to close it off in profit. Half a fish is always better than none in this case.

 

Conclusion

This strategy is not infallible and a lot of the profitability will depend on how the trader manoeuvres the stop loss and profit targets in response to the price action.

Download the complete system description and the files here:

FREE Snake Borders Trading System

Download the FREE Snake Borders Trading System for MT4.

To receive my email 100% sure: 
Put my email on your whitelist!

 

Partially Automated Trading Besides Your Day Job

Alerts In Real-Time When Divergences Occur

My Recommended MT4/MT5 Broker

About Me

I'm Mike Semlitsch the owner of PerfectTrendSystem.com. My trading career started in 2007. Since 2013 I have helped thousands of traders to take their trading to the next level. Many of them are now constantly profitable traders. 

The following performance was achieved by me while trading live in front of hundreds of my clients:

Connect With Me:  

Results From 5 Months!
This service starts soon! Be the first who get's notified when it begins!

This FREE Indicator Can Transform
Your Trading!

FREE Indicator + Telegram Group


Request the Ultimate Double Top/Bottom Indicator which is used by 10,000+ traders.