LET’S BUILD A SCALPING STRATEGY! part 4

Step 4. Once a proof Candle seems, we have a tendency to enter our trade order, as well as stop-loss and take profit orders. Let’s check out our entry order initial.

For a protracted entry in our strategy, we have a tendency to count back the last five candles and enter three pips higher than the best one amongst those last five candles. this may be a purchase Stop entry order.

For a brief entry, we have a tendency to count back the last five candles and enter three pips below all-time low one amongst those last five candles. this may be a Sell Stop entry order.

Now let’s take into account our stop-loss. For the long entry, the stop-loss is three pips below the low of the Signal Candle. And for the short entry, the stop-loss is three pips higher than the high of the Signal Candle.

The last half is selecting wherever to require profit. we've got 2 take-profit targets during this strategy. the primary take-profit is at one unit of reward to risk, or 1R, and therefore the second take-profit is at two units of reward to risk, or 2R. Let’s imagine the distinction between the entry and stop-loss is ten pips. during this example, we'd exit [*fr1] the position at ten pips of profit and therefore the half of the position at twenty pips of profit.

This is a whole scalping strategy: it's entry rules, stop-loss rules and take-profit rules. however before you trade it, you ought to take a look at it yourself and not simply take my word for it! Back take a look at it or take a look at it in period with a demo account. think twice regarding with that currency pairs and which era of day you’ll be exploitation – not all combos work. Testing the strategy can assist you get snug with any losing streaks this strategy might turn out. Once you have got an inspiration of the strategy’s typical results, you'll dip your toe within the water with live cash.

Here’s a bonus tip to form this strategy even better: line up the entries with support and resistance levels on the 1-hour and 4-hour charts to assist improve your success rate!

That’s the top of our course regarding scalping. we have a tendency to hope you’ve enjoyed, and you’re prepared for this quick, probably rewardable however conjointly comparatively risky commerce vogue.