I Tested A Simple 1 Minute Forex Scalping Strategy 100 TIMES - The Results SHOCKED Me! 😱

a simple and profitable forex scalping strategy on the one minute time frame sounds great right well we all want to open and close our trades fast and cash out that amazing profit but is this strategy profitable we need to test it 100 times to find out so let's get into [Music] it all right let me tell you a little bit about this simple forex scalping strategy and as usual we're going to go over a couple of examples first then get it tested 100 times so make sure to stay around till the end so this one minute trading method is labeled as a simple and profitable forex scalping strategy that can be used to trade forex crypto or even the stock market it's based on two simple and free technical indicators and it can be used around the clock which means all day and all night without stopping i didn't invent it to be honest with you but i received it from andrey who is one of our subscribers he included the link to the breakdown of this trading method where it's mentioned that it's a trend following strategy that's my favorite kind it's always important to back test your trading strategy before using it to trade your hard-earned money trading is a popular way to make money but it also requires a good strategy and reliable money management skills by the way you can also submit your trading strategy if you want us to review it at www.tstlife.com submit we only need two indicators the moving average and the stochastics oscillator that's all so let me give you more details about it the first thing is obviously opening up the one minute chart then adding the indicators needed to run this trading strategy so let's add in the exponential moving average 50 and 100 periods to differentiate them i'm going to set the color of the 50 ema to green and the 100 ema to purple we can also adjust the width if we want to make things easier for us so the green thin line is the 50 ema and the thick purple one is the 100 period ema now let's add the second indicator it's none other than the stochastic oscillator a momentum indicator that's widely used in forex trading to pinpoint potential trend reversals this indicator measures momentum by comparing the closing price to the trading range over a given period i'm sure you're familiar with this indicator as we've covered it multiple times in the past but basically like other range bound momentum oscillators such as the relative strength index rsi and williams percent r the stochastic oscillator is also useful for determining overbought or oversold conditions ranging from 0 to 100 the stochastic oscillator reflects overbought conditions with readings over 80 and oversold conditions with readings under 20. we need to highlight the two levels 20 and 80. i'll use different colors to differentiate them the 20 level in red and 80 in the green color that's all we need now so quickly when should i buy or sell according to this trading strategy let's begin with a buy setup well we just need to wait for the 50 ema to cross above the 100 ema then we're gonna wait for a pullback which is only confirmed once the 50 ema crosses below the 100 ema line once the two conditions are met we'll go long as soon as the stochastic oscillator reading goes above 20 percent simple right by the way i couldn't find a clear risk to reward setup but since it's a one minute trading strategy i'll risk two percent of my account in all trades so let's go for a one to one point five risk to reward ratio so the stop loss will be located 10 pips away from the entry and we would aim for 15 pips take profit let's look at this example from the chart we can see the first ema crossover here the 50 periods ema has just moved above the 100 ema which means that we should be expecting a short-term uptrend the next step is waiting for a nice pullback to go long we'll only consider pullbacks that are strong enough to get the 50 ema crossing below the 100 ema line that's what happened here now we just need to wait for the stochastic oscillator to go above the 20 percent level voila we go long here and it's a successful trade what about the cell setup nothing special here as well the 50 period ema moving below the 100 period ema is a signal that the pair is entering into a downtrend phase after the price finished its strong down move we'll look for the second crossover at that stage we can go short as soon as the stochastic indicator moves below 80 indicating that the market isn't overbought anymore here's a short example from the chart the 50 period ema has just moved below the 100 period ema and this strong downtrend is formed we shouldn't go short here as the pullback is expected soon once the second crossover occurs here we start looking at the stochastics indicator and go short the second the value moves below 80. awesome another successful trade two successful hand-picked examples are not enough to tell whether trading strategy is profitable or not so it's time to begin the 100 testing process is this a profitable scalping strategy can we use it to trade forex or other financial markets we'll find out soon so let's get into it i'm going to fast forward the video while waiting for the final results please give this video a thumbs up if you enjoy this type of content it helps the channel grow and encourages us to make more videos in the future alright we're done let's look at the results now it took us 18 days to complete the 100 trades that's an average of 5 trades per day we've recorded 47 successful trades which is fantastic considering the 1 to 1.5 risk to reward ratio we're applying five consecutive losing trades were recorded with a total drawdown of nearly 12 percent that's all right but can be reduced for sure and the biggest question is how much money have we made well we began back testing with an initial balance of one thousand dollars and we ended up with the thirteen hundred fifty dollar final balance that's three hundred fifty dollars profit all trades were closed on the same day so no need to worry about any extra swap charges i think it's quite a simple and profitable forex scalping strategy i'm just afraid that this trading method doesn't give us much time to think and make decisions and we'll definitely need a high stress tolerance to manage the extremely volatile market but the best part about it is the fact that all trades are executed with a clear take profit and stop loss level so even if there are any surprises you'll only lose two percent of your account well thank you andrew for sharing with us this trading method i think the next step is building a robot that trades using the strategy we won't use any real money at the moment only to back test the scalping strategy for a longer period this method gives us at least five entries per day if we use a robot to test it i'm sure the one-year trading journal will include some very interesting facts about this one-minute trading strategy feel free to give the video a thumbs up if you want us to do that in the future let us know in the comments section if you have any ideas on how to optimize and don't forget to subscribe to our channel and press the bell icon to get new video updates happy trading

Channel: Trading Strategy Testing

Views: 50,670

Keywords: 1 minute trading strategy, 1 Minute Scalping Trading Strategy, moving average tested, moving average tested 100 times, moving average crossover strategy, moving average scalping strategy, moving average trading strategy forex, moving average day trading strategy, how to trade moving average crossover, moving average indicator strategy, exponential moving average trading strategy, best moving average, tested 100 times, moving average trading, moving average tradingrush, 100 times

Id: y2ROFybhJfc

Length: 8min 25sec (505 seconds)

Published: Thu May 05 2022