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Quiet Scalping


tradelover

6.204 citiri

Here is an implementation for a scalping strategy for a quiet market. The strategy was posted by adraz on vamist.com, and as he said, it is not his original one, he got the description from the web, he tested it and it seems to work. After few discussions, he also posted the original (English) material here. As the copy/paste is from a 2-columns PDF file, it could be some mixed texts, but you can get the right point.

 

My friend ener made a first implementation, which I modified to use fixed lots and recompute the spread in the right way, as for scalping strategy, using variable lots won't work (mathematically, you lose more than you gain by playing constant-risk lots for a fix SL and fix TP).

 

The resulted modified EA is below. What is interesting: I tested this for a period of 8 years using EURUSD M30, with all M1 data downloaded for the period (for Strategy tester interpolation), charts provided by MetaQuotes (ACT2007 demo account) with 1.0 lot entries, and I used Every Tick testing method. Guess what? It brought the account from 10K to almost 30K during testing period (1999-2007) with an almost linear increase.

 

adraz_lowv.mq4

 

Personally I won't trust such approach, as it has nothing behind, except a small psychological trick ("the market returns to close point during quiet periods"). But the fact is the fact, and maybe this approach can be a good starting point for someone trying to develop his own scalping method.

 

Disclaimer: My personal belief is that scalping is suicide. Don't blame us if you lose money with this strategy. Sorry for romanian comments inside, initially when I modified it, I did not expect any profit, so the comments were dedicated to show to my romanian fellows that the strategy is dead :D

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Hi.

 

Would you please send your backtest report, or add it to your blog thread?

I tried different time settings, but never got a good result.

 

Andi.

 

Sorry Andy, I had some trouble with my blog settings, as I said before, this is my first blog and I got lost in the settings :D

 

I was really wondering :P why nobody placed any comments here... but the comments were disabled... Just now after receiving your PM today, I went to settings and "set sail" for them.

 

Related to the strategy, most probably you could not get a good result because of a time difference. You must set the "orastart" parameter (this is "starting hour") in such a way that the trades take place during the two hours with the LOWEST volatility (lowest volumes) of the day. For my time and MetaQuotes server, this is 21:00, that's default parameter value. This strategy is not designed to work when the market is crazy, but only when the market is sleeping.

 

Here you can see a new test that I made now, the old one I lost. I'll say again that I don't play this strategy, my style is more of a "long term" stuff.

 

It is done on M15 from Nov 1999 till today. On M5 and M30 the result is almost the same. On the chart you can see two profitable trades, one lost sell, and some other trades that did not get activated and were deleted after 2 hours. Please remark the Volumes. All the trades are placed when volumes are extremely low. You can place them before of after the swap time (dotted vertical white lines that shows the daily period), to avoid swap troubles. Depending on your broker, for me "after" is not possible (not enough time until my Japanese friends wake up).

 

Below the graph you can see the profit chart. As all the trades have fixed lot, fixed TP, fixed SL, and RR is 1:1, it is quite easy to deduct the report. I will place the report too, if you really need it.

 

Disclaimer: Do not play this strategy with real money until you test it in real time on a demo account, at least for few months. I never did forward testing for it.

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