Hey now. I'm back with another exclusive and simple scalping strategy that has been proven
very profitable over a short amount of time. And if you stick around to the end
I will show you how to make it even more profitable. All I ask is that
you hit that subscribe button better than these people can throw a tomahawk.
I call this system Scalping on the Half Trend. And like most trading systems it
can be adapted to forex, crypto, options, stocks, indices, or any instrument that has
significant volume and market participants. This strategy uses two free TradingView indicators.
As always links and settings to all indicators are listed in the description.
The first indicator is the HalfTrend by Everget. I'm going to keep the inputs and
style at default settings. We are going to use this indicator for entry signals
in addition to the stop loss level. The HalfTrend is similar to the Super Trend
in that it uses the Average True Range but calculates signals using different logic.
The second free TradingView indicator is a multi-timeframe Exponential Moving Average.
I'm going to set the timeframe resolution to 15 minutes and the length to 200. this EMA
will be colored in white. The 15-minute EMA will provide us with higher time frame trend direction.
Let's go over entry criteria and review some examples. As always system rules and details
are listed in the description below. This chart is Bitcoin versus the US Dollar five-minute candles.
The rules to enter along on Scalping on the Half Trend are: First,
price must be above the 15-minute 200 Exponential Moving Average.
Second, we are looking for a buy signal on the HalfTrend which is signified by a blue
triangle pointed up. All of that happens on this candle here. That is our trigger candle.
We place our stop at the ATR level of the HalfTrend and target two to one. And
this one hits our target. If you enjoy this content make sure to click that like button.
We have one more long example. Price is above the multi-time frame EMA. The HalfTrend study gives
us a buy signal. This is our trigger candle. We place our stop at the half trend ATR line in blue
and target two to one. And this one hits our target in rapid fashion. Now we flip to shorts.
This is what I will test for shorts. First, price must be below the 15-minute 200
Exponential Moving Average in white. Second, we get a HalfTrend sell signal which is this red
triangle pointed down. This is our trigger candle, and please remember to wait for the candle to
close. We target two times the risk. And this one strikes our target after a quick pullback.
I'm going to show you one more quick short example. Prices closed below the 200 EMA. We
have a HalfTrend sell signal. This is our trigger. Our target is two to one. And this setup crushes
our two to one target. I'm going to give you some ideas on how we can make the
system better along with a Trader's Landing score. And now it's time to do what I do.
If you enjoy this content please hit the like button. Remember this is just 100
tests on one instrument. If you are thinking of using the system please
do all the required testing and be sure to let our community know what you discover.
This test was done on Bitcoin versus the US Dollar five-minute candles. It took a lightning
13 days to get the 100 setups. This test produced a 47% win rate. The most wins in a row were five,
and the most losses were six. Gain on the account risking 2% per trade was 80% not counting fees.
That being said I have some ideas on how we can make this system even more profitable.
So the equity curve here starts out with a very impulsive move up, followed by a rising
consolidation, and then a nice choppy move north. If we look at the 100 trades taken but change the
resolution from five minutes to four hours we can see how the higher time frame trend
correlates to our equity curve. At the start, we get a move down with very high velocity,
and then a pullback, followed by some choppiness, and then some nice trends.
What score would you give this strategy? Let me know in the
comments below. I give the system a Trader's Landing score of 7. Because
it is easy to identify signals and uses higher time frame confirmation for entries.
Remember the enemy of great is good. I have four ideas on how we can improve this system. First,
we can potentially increase our gains by using the HalfTrend
for not only entry signals but also as a dynamic exit signal. Look at this setup
on the chart with a huge risk to reward ratio exiting on the buy signals of the HalfTrend.
The second way we can find the crumbs is to utilize another indicator for a dynamic exit,
such as the SSL Hybrid which I featured in this video. You can see here if we
use that indicator for the trade exit this trade would have yielded an amazing result,
and that should be true especially in trending conditions.
Another way to optimize the strategy is to examine market structure. Look
at this chart with setups taken during the test. We can see lower lows and lower highs
and we get all of these buy signals that hit our stop. These signals are best to pass up,
and while that will limit your entries it will greatly increase your win rate and gain
on account. Here is another example where we get all of these buy signals according to the system
but you can see a clear downtrend. Entries here would be inadvisable.
The next thing to look at when trading at this system, or any trend system for that matter,
is to watch out for huge moves. Look here. We get a huge impulsive move up. What you want to look
for is either another move-up or a new trend that is confirmed by market structure. Check
out this playlist for more profitable systems. And have a great day because you deserve it.