Schaff Trend Scalping

Post your new strategies, discoveries or just ideas for development

Schaff Trend Scalping

Postby AsherEWT » Wed Jul 29, 2009 4:33 am

Hi everyone,

Its been quite a long time since I posted a Trading Strategy but here is just another new Scalping method which I've tested for quite a long time and now I feel confident to share it with everyone around.

However, please note that although the Logic is same but this particular Indicator behaves bit differently when I use it on MT4 or AlTrade Platform compared to the ProRealTime platform that I use with my CFD Broker. IMHO, I've found the ProRealTime much more reliable than the way it works on MT4.

Here goes my Scalping method:

Timeframe: 5, 10, 15 Minutes
Pairs: Any pair will do however Cable (GBPUDS, GBPJPY) is my favorite for Scalping

Go Long When:
1. Schaff Trend Cycle has been rising
2. Schaff Trend >= 25
3. MACD is in uptrend
4. Parabolic is in Uptrend

Go Short When:
1. Schaff Trend Cycle has been declining
2. Schaff Trend <= 75
3. MACD is in downtrend
4. Parabolic is in downtrend

Exit When:
Really depends on the MACD Pattern, sometimes you may want to Exit when the MACD line separates itself from the Histogram while sometimes you need to Exit when the Schaff has reached to 75 level (if you're on Long Trade). Based on my experience, it also depends on how quickly the Schaff Trend has moved from one extreme to another.

Advantage:
Basically, it filters out the False MACD signals, such as the one shown in Chart. The key is to avoid the MACD signals which are not confirmed by the Schaff Trend Cycle.

Tips:
1. Also try to use it on larger timeframes, you'll find it quite useful especially on 4H timeframe
2. Try it in combination with ADX (see my previous strategy on this site "ADX Power" at http://forex-strategies-revealed.com/basic/adx-power)
3. If you're not using this system for Scalping but for the longer term Entries than you might want to keep yourself in trade until the Schaff Trend hasn't changed its color (sorry only available in ProRealTime) or moved to the other side (25 to 75 or from 75 to 25)

Caution:
1. Only use this system during the active trading hours (European Session is my favorite)
2. Its not necessary that the Schaff Trend will always move between 25 and 75 levels, sometimes this might change its direction well before reaching its destination. If that happens, you must exit your trade immediately.

Once again, good luck with your trades and keep making pips.

Nariman (Asherewt)
http://ichi360.wordpress.com
Attachments
Schaff Trend.mq4
(3.84 KiB) Downloaded 2216 times
Schaff Entries.PNG
My Trading Blog: http://www.ichi360.com
Follow me on Twitter: http://twitter.com/ichi360
AsherEWT
 
Posts: 43
Joined: Tue Jul 07, 2009 1:46 am

Re: Schaff Trend Scalping

Postby Edward Revy » Sat Aug 01, 2009 3:57 pm

Hi Nariman,

Thank you for a well explained scalping strategy.
It looks good, nothing to add or remove from the rules. Just requires some demoing and ready to go!

I'd like to contribute the necessary indicators for MT4.

Best regards,
Edward

P.S. looks like traders are probably lazy ;) to register an account... so many views and no comments.
Guys, don't be lazy to say "Thank you" to people who try to help you trade better!
Attachments
STC_COLOR.mq4
(5.13 KiB) Downloaded 2421 times
MACD 2 Colour HISTOGRAM.mq4
(3.53 KiB) Downloaded 2161 times
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Edward Revy
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Re: Schaff Trend Scalping

Postby AsherEWT » Sat Aug 01, 2009 7:54 pm

Hi Edward,

What a timing :) I had found this Colored STC just last night and wanted to post here as an attachment now when I saw that you've already done it. Thanks a lot for doing this, and yes the colored MACD looks good too.

BTW, I encourage everyone here and will appreciate if someone could perhaps write an EA based on these indicators and strategy. It will be interesting to see how this strategy performs in Backtesting. I've done some backtesting in ProRealTime environment and you will be surprised to know that as an average 8 out of 10 trades were positive. 80% is not bad if you have good Money Management skills and know how to reduce the losses on those 20% false signals.

Looking forward to hear from someone regarding EA.

Good luck everyone.
http://ichi360.wordpress.com/



Edward Revy wrote:Hi Nariman,

Thank you for a well explained scalping strategy.
It looks good, nothing to add or remove from the rules. Just requires some demoing and ready to go!

I'd like to contribute the necessary indicators for MT4.

Best regards,
Edward

P.S. looks like traders are probably lazy ;) to register an account... so many views and no comments.
Guys, don't be lazy to say "Thank you" to people who try to help you trade better!
My Trading Blog: http://www.ichi360.com
Follow me on Twitter: http://twitter.com/ichi360
AsherEWT
 
Posts: 43
Joined: Tue Jul 07, 2009 1:46 am

Another Example

Postby AsherEWT » Mon Aug 03, 2009 10:24 pm

Here is another example of Scalping with Schaff Trend ...

Note that I've used 10 and 90 as the Trend Changing readings for Schaff. Also note that DMI (along with ADX) can also be used as an additional confirmation.

Asher
http://ichi360.wordpress.com
Attachments
Schaff_Scalping_Example002.PNG
My Trading Blog: http://www.ichi360.com
Follow me on Twitter: http://twitter.com/ichi360
AsherEWT
 
Posts: 43
Joined: Tue Jul 07, 2009 1:46 am

Re: Schaff Trend Scalping

Postby AndreaBonilla » Sat Jan 21, 2012 8:11 am

That happens when you try to change colors in the code itself. It does not like being hacked too much



But for some even stranger reason, when you restart metatrader, it does show everything OK

Maybe we should ask metatrader stuff?
AndreaBonilla
 
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Joined: Sat Jan 21, 2012 12:37 am

Re: Schaff Trend Scalping

Postby +_+ » Sun Mar 25, 2012 7:29 am

Thanks for sharing. It will make this strategy prefect if there's a Stop-loss strategy to it.
+_+
 
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Joined: Sun Mar 25, 2012 2:26 am


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