The scalping strategy I’m testing this time is by Trader DNA – a video with over half a million views. This trading strategy has a win rate of 99.3% using two EMAs and one stochastic.
Hence, I’ll teach you how to use it to grow your trading account. Then, I’ll show you some live trading examples I took from the past week to make it even easier.
If that sounds good, please share this blog post with family, friends, or any forex trader you know.
Forex Trading Scalping Strategy With EMA and Stochastic
You can see below – my first trade of the week.
It is a USDCHF sell trade that went in my direction and smashed my take profit for $2,204 – A fantastic win over ten pips and a risk-reward ratio of 1.53.
In my verified Myfxbook account, you’ll see that I had this single trade after my first day. It was the USDCHF sell trade I just showed you.
I took the trade with 20 lots (a big lot size) and won 10 pips and $2,204 in just 26 minutes.
You probably want to know how I did this, which is the whole point of the article. Hence, I will share the installation procedure in your free TradingView account.
Installing The FX Trading Scalping Strategy
Fortunately, you can install this Forex scalping strategy in TradingView and Metatrader. I do it in Trading View because it’s easier to show you these steps:
1. Change your timeframe to one minute. The original strategy used the five-minute timeframe, but I back-tested it severally and discovered it had way more success on the one-minute timeframe.
2. Install two indicators – the Moving Average Exponential (twice) and the Stochastic. Double-click the latter to edit the settings changing the %K length, %K smoothing, and %D smoothing all to 5.
3. Double-click one of the EMA and change the length to 50; set the other to 150. I generally alter a look as well to make it more visible.
As for the pairs, I traded multiple ones, but I advise you to stick to one at a time if you’re new to this strategy (or any strategy). You will have more success that way.
As for trading time, I use this strategy within London and New York sessions. I recommend trading the London session, even the London New York crossover because there’s high volume, which makes scalping effective.
Live Trade Examples With The EMA Stochastic Forex Scalping Strategy
After my first trade, I was up $2,204, so it’s time for me to show you exactly how I did that and how this strategy works.
Firstly, we must be in a trend (down in this case) on the lower timeframe. You’ll then look for the price to pull back to test the 150 EMA, anticipating it to return down and break through the 50 EMA.
Lastly, I want the stochastic to cross as we enter sell trades above the line.
As for stop loss, I set mine a few pips above the recent swing high. We want to see the price between the 50 and the 150 EMA.
Ideally, it should try to test the 150 and then come back down and break through the 50 while the stochastic gets across.
I had a banger 8.3 pip stop loss, a 12.7 pip take profit at a 1.53 risk reward ratio, and the price hit the latter, banking me $2,204.
Live Trade 2 (Buy)
It was a GBPUSD trade in a short-term up trend, and the price got close to testing the 150 EMA before breaking the 50 EMA. Hence, I was already looking to buy trades.
The stochastic crossed, further validating my theory, so I placed my trade after it broke the 50 EMA.
My stop loss, as discussed, was just a couple of pips below a recent significant level. The trade eventually went in my direction, smashing my take profit to pay me $3,753 because I followed all the rules.
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Live Trade 3 (Buy)
I had another buy trade on the AUDUSD in my third trial.
As usual, the short-term up trend was clearly in motion, so I looked for a slight pullback between my 50 EMA and 150 EMA. I anticipated entering my trade when it started to break above the latter.
I also wanted to see this stochastic crossing that ensued.
PS: I prefer the stochastic crossing at the extreme 100 levels (up or down). It is a stronger signal than when it crosses the 50-line rate, as in this trade.
Regardless, I thought this was still a solid trade since it was trending and opened an order.
Price went against me a bit but eventually went in my direction and smashed my take profit for $2,718. Awesome trade.
Again, I used the risk-reward ratio of 1.5. The stop loss was a couple of pips below a recent significant low, and for my take profit, I’m targeting 1.5.
As I already have my stop loss of 6.5, all I have to do is drag it until I get to a risk-reward ratio of about 1.5, being what I’m targeting. It’s that easy.
Live Trade 4 (Sell)
I lost this last trade (about $1,982).
We were in a relative downtrend, and I got the pullback to 150 EMA. I started to get to cross down the 50 EMA, and my stochastic crossed, so I thought this was a good trade.
I followed the rules, but it just didn’t pan out.
It’s possible there was news around this time. Hence, always check the Forex Factory calendar because that will tell you if the news will affect the volatility and mess up one of your trades.
That said, trading strategies won’t win every single trade. You have to understand that risk is all just part of the game.
Final Results With The 1 Minute Forex Trading Scalping Strategy
I used this scalping strategy all week, gaining $6,474, as shown in my verified, legit Myfxbook account. That’s a gain of 11.35%.
Look at the statistics closer; I won three out of four trades which is a 75 percent win rate despite their promise of 99.3 percent.
Regardless, I’m thrilled with the result, especially when my risk-reward ratio is 1.5 on every trade.
The average trade length right here was 27 minutes, a solid one for a scalping strategy because we’re in and out of these trades quickly.
As you can see at the bottom, the first trade banked me $2,200. I profited $2,700 on the second and $3,500 on the third. Then my only loss was $2,000.
Hence, even though I didn’t get that 99.3%-win rate promised with this Forex scalping strategy, I made over $6,000, barely trading it.
I only placed four trades and made much more money in my VIP and free room trades, so overall, I was happy with the experience.
Thanks for reading, guys. Please watch the Youtube video on this article, like it, and subscribe to the channel. You can comment here or on my channel telling me what you want to see me do next. Much love.