Scalp Inc. M1 Strategy — The Wild Hunting For The Profit

Hello, friends Forex traders! Most trading systems as known, are designed to trade when there is a trend on the market. But, the problem is that the trend is on the market for only about 30% of the time. The rest of the time the price makes a zigzag movement, which is called Flat.

Popular Scalp Inc. M1 strategy gives the solution to this problem. In this system, there are rules for working with the trend, as well as the rules for working with Flat.

As you guessed from the title, we will talk about scalping on the minute charts (M1), one of the most complicated ways of Forex trading. Are you ready to hunt for the profit?

Features of the strategy Scalp Inc. M1

Platform: Metatrader 4
Currency pairs: EURUSD
Timeframe: M1
Trading Hours: 0:00-21:00 GMT
Recommended broker: Roboforex, Exness, Forex4You

Reference section

Nuances of installation

Extract the archive into the Open data folder of the terminal and restart the terminal. If the profile has not changed in the terminal automatically, you can change it through the menu manually.

Different types of the market

Scalp Inc. M1 is focused on different types of the market because all of you probably know the situation when the strategy that is good for trading in the uptrend, shows weak or negative results when trading on flat. In this strategy, there are separate rules for all possible states of the market. That is, we immediately try to determine what’s on the market — trending or flat, and then apply rules that are appropriate specifically to the current situation.

Different types of market behavior require different approaches to trading. According to statistics, 70% of the time the market is in the state of Flat.

The rest of the time the price has a certain direction - the trend.

But during the release of important news a collapse of the market may happen - this is a condition characterized by an abrupt change in the exchange rate over a short period of time. The schemes of technical analysis cease to operate at this period of time, so we will not trade during the collapse of prices.

Often the new trend appears at the time of opening of the new trading session, or the current trend changes its direction. This is due to the fact that with the opening of a new session a large number of new players enter the market and a large number of pending orders is triggered.

Therefore, it is important to understand when you DON’T have to trade:

Half an hour before and after of important news release;
15 minutes before and after release of news of moderate importance (optional);
During the Pacific session.

The rules of entry and exit

Once we figured out when we have to refrain from trading, we now proceed directly to the rules of entry into the market. Rules of entry will be slightly different for flat and trending market conditions.

Rules of entry in Flat

First, we need to determine whether the market is in the Flat state. It is simply to do because the majority of the time we see the state of Flat. If the TMA channel does not have a clear direction - most likely there is Flat on the market. Also, if the price is between the dotted lines of the TMA channel on the chart M5, we are likely to see Flat on the M1 chart.

Entry to buy:

The blue line of SSRC indicator is below the level of -0.95;
The yellow line of SSRC indicator is on the bottom (ideally, it begins to turn upward);
The price is between the bottom boundaries of FL01-FL02 channels (ideally, the price touched or went beyond the boundaries of FL02);
On the chart, there is a signal in the form of the yellow star (ideally, it has a blue halo).

Entry to sell:

The blue line of SSRC indicator is higher the level of 95;
The yellow line of SSRC indicator is on the top (ideally, it begins to turn downward);
The price is between the upper boundaries of FL01-FL02 channels (ideally, the price touched or went beyond the boundaries of FL02);
On the chart, there is a signal in the form of the yellow star (ideally, it has a red halo).

Rebound from the support line or a pivot will be a good confirmation for the signal.

Rules of entry with the trend

First, regardless of the direction of the signal, we always enter in the direction of the trend. We can determine the trend by SSRC indicator and direction of the TMA channel on M1 and M5 charts. We are dealing with the trend if SSRC indicator does not reach the values of +-0.9 and turns back, and TMA channel shows a distinct slope.

Also, don’t forget to look at the additional chart. In this case, the horizontal channel on the auxiliary chart shows a clear upward trend.

Entry to buy:

The blue line of SSRC indicator is below the level of -0.75 (ideally, it is lower of -0.9);
The yellow line of SSRC indicator is on the top or moves upward;
The price is between the bottom boundaries of FL01-FL02 channels (ideally, the price touched or went beyond the boundaries of FL02);
On the chart, there is a signal in the form of the yellow star (ideally, it has a blue halo).

Entry to sell:

The blue line of SSRC indicator is higher the level of 75 (ideally, it is higher of 0.9);
The yellow line of SSRC indicator is at the bottom or moves downwards;
The price is between the upper boundaries of FL01-FL02 channels (ideally, the price touched or went beyond the boundaries of FL02);
On the chart, there is a signal in the form of the yellow star (ideally, it has a red halo).

Rebound from the nearest level of support/resistance or a pivot will be a good confirmation.

Management of the position

Immediately after the opening of the trade, we move Stop-loss behind the local extremums of the price, but not farther than at the distance of three ATR. Once the price goes from 4 to 6 pips in our direction, it is allowed to transfer our positions to breakeven. To do this, push the button Breakeven on the trading panel.

Exit of the position

We can exit the position when observing any of these conditions:

SSRC indicator shows opposite signal;
The opposite signal in the form of yellow star appeared on the chart;
The price has reached the opposite border of the channel;
Automatic exit in case of Stop level.

Money management

The author of the system recommends the use of 5% risk per trade (approximately 0.05 lots for $100 of your deposit). If you use an auxiliary adviser, the risk will be calculated automatically when you open a new position;

Additional recommendations

Open only one position to avoid confusion;
Don’t use Martingale and averaging;
If Stop-Loss triggered we switch off the terminal for 15 minutes. And we do 20 pushups during this time. Physical exercises help to get rid of the anger, regain strength and sobriety of mind;
If there are two Stops in a row, switch off the terminal until tomorrow. We do the same if there are four losses in a row for a day.

Conclusion

Trading system Scalp Inc. M1 gained immense popularity, and it wasn’t an accident. High probability of profitable trades (The author of the system has 65%, it’s a lot for M1) in combination with clear criteria for entries, automation of exits and testing of flat give the strategy all advantages that let even Forex newcomers work with it.

Download strategy Scalp Inc. M1 files

Take care, Michael

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