The Simple Scalper Trading System is sometimes called the FDM and Laguerre forex strategy. It is for trading the EUR/USD, AUD/USD and the GBP/USD currency pairs.
Just as in every scalping strategy, this trading system is designed to work with the 5 minute timeframe. Scalpers should at all times trade using tight timeframes. A scalper will at all times try as much as possible try to minimise the duration of time his or her trade stays in the market. A profit closed is worth more than a running trade with profits. Sometime you may be watching the market and all of a sudden everything changes and the profits that you were enjoying to watch hopping to get more changes to losses. And in scalping whenever a trade shows that it is making a loss, it is best to close it and open another trade in order to reduce the risk of the loss growing to a huge figure.
This trading system uses the Time Zone Trading indicator, buysell indicator, direction indicator, laguerreRSI and the FDM indicator. Its template also comes with the zig zag and the buysell magic (1, 2) indicator that is displayed on the chart as a dotted line.
Fig. 1. Simple Scalper the indicators found on the Simple Scalper Trading System template.
The FDM is displayed on a separate and its signals are indicated by the color changes.
When and how to open trades
Placing a buy order
The following are the right conditions for a trader to open a buy order:
- The buysell indicator indicates a blue arrow showing an upward direction.
- The direction indicator indicates a green arrow.
- The FDM becomes green
- The LaguerreRSI moves above the level of 40.
Placing a sell order
The following are the right conditions for a trader to open a sell order:
- The buysell indicator indicates a red arrow.
- The direction indicator indicates a red arrow pointing downwards.
- The FDM becomes red
- The LaguerreRSI moves below the level of 40.
Fig. 2. Simple Scalper Showing when the trader is supposed to open trade.
Once a trade is set the trader should be ready to close the trade when the Buysell indicator shows a reversal signal. Or you may opt to set a take profit at 6 to 8 pips away from your order.
You also put a stop loss at the previous cyan arrow of the direction indicator for the buy orders and at the previous red arrow of the direction indicator for the sell orders.
If the trade get a loss then it should be closed after approximately 5 minutes.
Download Free Simple Scalper Trading System