In this special video, I’m taking my scalping strategy from last week and turning it into a trading robot for you.
The goal is to see if automating this scalping strategy can help fund my mansion or at the very least give me a bit of passive income and pay for my next vacation.
Scalping Trading Robot
Last week so many of you were crushing it with my scalping strategy. I saw five wins in a row. I saw three wins in a row, and a ton of you were showing me a lot of love. So to return that love, I’m going to code this robot just for you. If you’re wondering why, there are two main reasons to code a forex robot.
- It helps you optimize and test the strategy, backtesting to get a better performance.
- You can let the robot trade for you in Metatrader and actually trade for you overnight, or just when you’re not available at your computer. Placing buys, sells, with take profit and stop loss.
So first, let me give you a quick refresher on what the strategy was. Then I’ll get into the coding, the optimizing showing you the trading results, and finally giving you access to this free scalping trading robot that I’m coding just for you.
The Scalping Strategy
This is the scalping strategy I used last week that I’m coding into a robot for you in the next couple of days. What I did was use three indicators. I used the three smooth moving average, the relative strength index, and the Williams fractal.
The system worked like this. The moving averages had to have the price closing below them, just like this. We had to have the RSI below 50 like this, and we had to have a fractal pointing in the opposite direction. This tells us that we have a sell opportunity. In this case we would’ve banked all of these pips for an excellent trade, which is why I’m coding this into a bot. Now, I’m just going to make myself a coffee right now, then I I’m going to get started.
Coding the Bot
Right now, I’m about halfway through coding this robot for you. I’m using the MQL five language. I’m developing the software in Metra four and Metra five. So if you’re broker only has one of them, you will be able to use it. In terms of the coding, All I’m doing is taking the three indicators and making sure that the software is following rules. So if the price is closing below the moving averages, the RSI is below 50 and we have a fractal on top. Then we have a cell opportunity. I’m making sure that the robot scans the market for those opportunities and provide sells or in the opposite case scenario by trades. So let me finish coding this thing, show you the settings, the results and give you that free access.
I’m done coding the robot. It took me about 10 hours and honestly, that’s way too much time for a video. So I hope somebody actually watches this. You can see the code here. I can scroll all the way down. It’s about 1000 in lines of code, but who wants to look at the code? I don’t want to look at the code anymore. So let’s pop up Metatrader and show you the final result.
Trading Robot Settings (Parameters)
We are now inside the Metatrader platform, I can finally unveil to you the robot that I’ve been coding for you all week. It took me way too long to code this thing. I don’t have a name for it. Let me drag it on the chart right now. It’s called new experts. If you have an idea of something you want to name it, or maybe I’ll end up naming it tomorrow when I release it with this video.
So let’s take a look at the settings. There is basic money management settings. You can set your own lot size or you can set risk percent. So if you want to risk 10%, every trade just set your risk percent to 10%. I have Martin Gale. You can enable that. And then after every single loss, it will double your lot size. This is a risky thing, but I like to throw it in most expert advisors, cause it’s just fun. Then we have the trade parameters. That’s your take profit, your stop loss. If you want to win 10 pips trade, you would set this at 100. If you want to lose just 20 pips per trade, you’d set that at 200, very, very simple. You have your max spread in points.
So if you only want the software to open trades when the spread is really low, you just set the set the max spread to five. I also coded in time settings. So if you want to use a time filter, you can actually set the start time to 12 and end time to 20. That would trade the New York section. I have a day’s filter coded in. So if you don’t want to trade Sundays, if you don’t want to trade Fridays, just set that to false. For some optimizations, maybe it’ll tell you not to trade Tuesday days. Then you set that to false. And then this thing just trades on your behalf.
When using a robot like this, all you’re looking for is a few pips a day and just consistent wins. In terms of the strategy parameters, We have the moving average. If you want to adjust any of the moving averages, the fast, medium, or slow, you can adjust them here. If you want to adjust the relative strength index, you can adjust that here. And then we have the ADX, which is an indicator that helps the software monitor trending markets, which is where this scalping strategy works best.
So if you want to use the ADX, you can set that to true and you can adjust that to whatever parameter you want as well. There was a comment under the YouTube video, someone telling me 20 works. So I’ve just been testing at 20 so far.
Trading Robot Performance (Optimization)
I’m about a day and a half into testing right now. I’ve been optimizing the hell out of this strategy and I’m happy with what I’m seeing so far. Last week I gave you a take profit target of 10 pips. And this strategy after optimization is showing me that 10 pips is a good take profit with multiple gains over for $4,000 at the 10 PIP mark, you can see 12 pips and 22 pips are also areas that are showing success. The only issue is the risk reward ratio. In this case, we do have a one to four risk reward ratio in a bunch of these settings.
To look at the results better, I put the tests on my Fxbook. You can see here, I did a $10,000 test that I started January 1st and now September 20th, where we are today, we are at $14,454 for a gain of 44%. This is a monthly gain of 4%, a drawdown of just 13%. These are good looking results. Actually we have a win rate of 85%. The best trade was $130. The worst trade, $586. And our average trade length is two hours and 30 minutes, which is good for a scalping strategy. It’s not too long. I’m sure it’s been stretched out by a couple of long trade, but that’s pretty good.
You can see down here, we have the monthly change. 7% in January, 6% in March, a big 10% in June, 8% in July, but overall a pretty consistent winning strategy for these nine months. You can see here, the actual trading results. We have the great Britain pound trades, 10 pips, 17 minutes, 2 hours, 46 minutes. Good looking trades. The only issue with the strategy I brought up before is the risk reward ratio here. You’re losing 38 pips. You’re only gaining 10.
Now let me take a look at that 38 PIP loss. This 38 PIP loss, What it’s doing here is we have the price right here closing beneath all three moving averages, which is what we want. We have the RSI right here and we have the fractal and then three candles after the fractal, we have our trade. So, you know, one, two, and then three. And then we have our trade. The problem is everything is telling that this is a sell trade, but really if you were actually manually trading this, you would look at this chart. You would say, all right, there’s a huge candle going down here and you probably wouldn’t enter the trade, which is the issue with robots. But this does show that the manual strategy is still incredibly effective.
Free Access (download)
So it’s been a long week of testing and developing, but we finally got ourselves here to the point where I have to give you free access to download this trading robot (click here).
So go to the links in the description of this video, in that link will be instructions on how to download it, how to install it, a video showing how to install it. And then you can start running it on your own trading platform, doing your own tests. And if you got this far in the video, go to my Instagram account, DM me, tell me you got to the end of the video and I’ll see if I can give a bunch of you free access to my VIP group for a week or two.
So thank you so much for watching. If you have anything you want to add, comment now, ask me questions. Thanks so much for watching the video. I love you guys. Peace.