Beta Scalping Strategy

In our articles on Forex trading, you could familiarize yourself with a variety of trading strategies. Some of them may have interested you. You remained indifferent to others, while others intrigued them as promising strategies that require individual revision or modernization. We have devoted a whole series of articles to scalping strategies.

So, one of the versions of scalping strategies that we have considered was found on a foreign forum of traders. As a result of testing, it showed good results. The article received many positive comments. Today we are going to look at a new scalping strategy called Beta Scalping. Please note that this is not a ready-made “turnkey” TS, but only its beta version, a prototype. Naturally, it still needs some improvement or even modernization.

Returning to the review of the Beta Scalping strategy, I would like to draw your special attention to some features:

  • you can trade only during the London session, you cannot open transactions during the rest of the sessions, this is contrary to the rules of trading;
  • choice of timeframe – TF M15;
  • currency instrument – EUR / USD;
  • positions should be opened only on sales, entry into the market by purchase is not considered.

What is TS “Beta Scalping”?

This is a scalping strategy, the algorithm of which is based on only two indicators:

  1. AutoTrendChannel – a tool that automatically draws a price channel on a chart;
  2. IINWMARROWS is a tool that draws symbols in the form of arrows pointing downwards on the chart, giving signals to enter the market with a sell.

The first tool draws a price channel, in the figure we see an uptrend, a rising price channel. The second tool, like arrow indicators, indicates with arrows the points of potential entry into the market by selling. Note that its signals on the chart are unidirectional – they are red arrows pointing downward.

Where can I get the TS “Beta Scalping” tools?

Since we are talking about proprietary indicators, you will not find them in the standard package of your trading terminal tools. You can download them online individually or as a ready-made template. In the first case, you need to know the settings for both indicators.

The properties windows of both indicators, each containing four tabs:

  • General – a tab with permissions to import DLLs, external experts and change signal settings;
  • Input parameters – a tab that allows you to make the so-called “fine tuning” of the algorithm of the tool;
  • Colors – here you can choose a color scheme for displaying the instrument on the chart;
  • Display – on this tab “by standard” TF is set to visualize the instrument on the chart. By default, the “All timeframes” item is usually active.

Signals and market entry for TS "Beta Scalping"

Signals and market entry for TS “Beta Scalping”

The rules for opening Sell positions are not complicated, but some conditions must be met:

  • It is only necessary to work during the London session;
  • We are waiting for a signal (red down arrow) from the “IINWMARROWS” indicator;
  • Wait until the candle closes, above which a red arrow appears;
  • We open a sell position after this candlestick closes or at the beginning of the next candlestick formation.

Setting Stop Loss and Take Profit

  • Stop Loss, according to the rules of TS “Beta Scalping”, should be set for the previous local maximum.
  • Set Take Profit at 10 points.

If Stop Loss, according to the terms of the strategy, is always set beyond the previous maximum, then there are options regarding the Take Profit setting. For example, you can use a trailing stop by pulling up your Take to take the maximum profit from the market. In this case, I think that Stop Loss can also be dragged to transfer the deal to breakeven.

Many will say that this is far from scalping. You can agree with this, but note that no one forces you to pull the position if the issue of scalping “according to the classics of the genre” is fundamental for you. I would like to note that depending on the momentum of a currency instrument and its volatility, with a trailing stop, you can take 100-200 points of profit per trade.

So, we just learned:

  1. what is the Beta Scalping strategy;
  2. what tools the algorithm of its operation is built on;
  3. what signals they give;
  4. how to open a trading position correctly;
  5. when to close the trade.

Remember that Beta Scalping can only be traded during the London session, otherwise you may get negative trading results. Do not forget also that the presented TS is only a beta version and needs to be improved. Write in the comments if you liked the topic of this article. Perhaps you already have some interesting suggestions for improving this trading strategy. Maybe you are ready to offer us some additional tool that will improve the filtering of signals to enter the market.

We will carefully study any of your suggestions, consider the most interesting of them in more detail. Maybe soon another review of the TS “Beta Scalping” will appear, but with your modifications.