My Trading Assistant for Scalping 11


Ciao a Tutti,

as we said yesterday, next week we are releasing FuturoFX Indicator. We have received so many requests about this tool that we could not keep private anymore :-)

There a lot of ways of using FuturoFX and we have explored only a fraction of them so far. Making it public will probably uncover many more possibilities for the benefit of all PimpMyEA members.

There are at least three ways of using FuturoFX Indicator that I can imagine at the moment:

  1. for scalping
  2. for placing bets with binary options
  3. for entering pending orders at the end of the day with fixed SL and TP levels
I’m not a scalper (I like much more programming and trading robots), however FuturoFX is making me seriously wonder if a should devote a couple of hour of each day to manual scalping :-)

FuturoFX is very different from the many indicators based on technical analysis that are installed into our MT4 platforms. First of all it really is a trading assistant, more than an indicator. And secondly it displays information in the future, not in the past. In my opinion this has some pretty amazing effects on our psychology as traders. When I enter a scalp trade with FuturoFX running on my platform I’m constantly warned about the possible outcomes of my trade. The price action displayed in the future makes me remember all the time that price can zig-zag a lot before reaching my take profit. So I should not freak out just because I see some pips against my trade. On the other hand FuturoFX can also suggest that the outlook for the next bars is not in my favor anymore. So it is much better not to fall in love with that trade and close it before it’s too late.

This morning I spent 2 hours with FuturoFX running on a couple of EURUSD charts and as always the scalping was easy and profitable: 6 trades for a total of +28 pips (280 USD trading 1 lot; you can click on the image below to see the statement).

Since may of you asked, here is the basic trading logic for using FuturoFX as a manual scalping tool:

  • keep FuturoFX opened on two timeframes (e.g. M5 and M30)
  • make sure the “average projection” and “best projection” on both timeframes are in agreement
  • if current price is still “low” compared to a bullish projection, then you can consider entering a Long trade
  • if current price is still “high” compared to a bearish projection, then you can consider entering a Short trade
  • place the take profit taking into account the projection and relevant support/resistance areas you can spot in the last few bars
  • if FuturoFX drastically changes its outlook, you should modify the take profit or close the trade

I hope the experience I’m acquiring with FuturoFX Indicator can be the base for implementing an amazing scalper EA. Also the feedback from the users will have a strong positive impact on this process.

Happy trading!

 


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11 thoughts on “My Trading Assistant for Scalping

  • Dan

    I’m looking forward to this one.

    Is it just as effective at higher timeframes such as H4 and D1?

    Does it work on all pairs?

    What kind of success rate of winning trades can be expected with it, or is that determined more by how it is used?

    • Paolo Post author

      Hi Dan, FuturoFX works on any pair and any timeframe. It only elaborates data coming from a single currency pair. Honestly I’ve always tested it on small timeframes, but I believe it can be even more accurate on high timeframes. As an example you may use it at end-of-day for placing pending orders on a H4 chart, only when it is in agreement with the future price action displayed by FuturoFX on a daily chart. Unfortunately I don’t have trade statistics yet, but I’m sure any trader with some experience can make very good use of this tool.

  • Laurence

    Ciao Andrea and Paolo,

    I’ve recently learned about lagging and leading indicators. My question: which group does the FuturoFX indicator
    is mostly associated?

    Thanks
    Laurence

    • Paolo Post author

      Hi Laurence, FuturoFX obviously pretends to be the ultimate leading indicator! 😀 Joking aside, it can be considered leading since it potentially gives trading signals BEFORE a trend has started. We all know that leading indicators generate false signals more often than lagging indicators. On the other hand they can help us to win more pips on the winning trades. As for any other aspect in trading there is always this trade-off involved (accuracy vs profit potential). We believe using FuturoFX on multiple timeframes is one of the best ways of filtering out false signals as much as possible.

  • David

    Hi Paolo/Andrea this sounds almost like the ever elusive “holy grail” or a real “crystal ball”. I await further news with great interest. Your work is outstanding.
    Best regards
    David

    • Paolo Post author

      Hi David, thanks for your appreciation :-) The only holy grail is between our ears – our mind! I think FuturoFX is a very good tool that can fit many different styles of trading (from scalping to end-of-day trading), but it is still a tool that requires our intelligence, experience and dedication do trading.

  • Bernard

    Hello Andrea and Paolo!
    Looks you made it again! Congratulations!
    If you get the same results with Binary options you might even win more with it!
    Did you made some tests on that purpose?

    Great work!

    Best regards,
    Bernard

    • Paolo Post author

      Hi Bernard, I’ve not yet an account for binary options. I’ve installed a demo one recently and I’m going to make some tests using FuturoFX 😉

      • Bernard

        Hi Paolo,
        Simply make the math. On 10/24 you made 6 winning trades using one standard lot and you won $280.
        Using one lot in scalping for me is accepting an eventual loss of 10 pips (100$).
        So if you use $100 per trade on binary options you could win 6*80$= 480$.
        200$ more than with a classic scalping…
        The only question that remains is timing.
        You had 4 trades between 13-21 minutes, which could be ok for a 15min binary option.
        Question remains about the 4min. trade and the 40min. trade as I suppose that for scalping you might choose a 15 min binary option and with some luck get in 5 minutes before expiration in the case of the 4 min trade. If the 40 min trade was ok after 15 minutes it might work..
        Looking forwards to your results with binary options!
        Good luck!

        Best regards,
        Bernard