TS from David Bradshaw

Published 13.02.2014 at 12.35 PM.

Hi, everyone!

Today I’m going to examine a trading system by David Bradshaw. It is a scalping system, in which trading is carried out on the M5 time frame.

First and foremost, download and install three indicators and a template into a trading platform:

DOWNLOAD INDICATORS + TEMPLATE

Unpack the indicators to the folder: ...\InstaTrader\MQL4\Indicators

And the template to the following folder: ...\InstaTrader\templates

Now open the platform and install the ‘davidbradshaw’ template:

The author recommends trading such pairs as EURUSD, GBPUSD, USDCHF, USDCAD, USDJPY, and AUDUSD; so all these instruments should be opened in your platform. Once you applied the template to each of the pairs, your platform will look like this:

To open an order, you should monitor all three indicators:

When to open buy deals:

- In the MultiPair indicator, all arrows to the left from 1HR should be blue;

- Stochastic should be above 20;

- Wait until the signal line becomes aqua in color.

When to open sell deals:

- In the MultiPair indicator, all arrows to the left from 1HR should be red;

- Stochastic should be below 80;

- Wait until the signal line becomes red.

For example, let’s take a look at the deal made on USDCHF today:

The trade is closed when the signal line becomes aqua.

In my opinion, the main drawback of this system is absence of a tight stop order.

When to fix losses:

- sell orders are closed when stochastic crosses the 80 level;

- buy orders are closed when stochastic crosses 20.

A short test proved the system to be rather good. I want to point out positive expected value when following the market entry and exit rules strictly.

Have a profitable trading!

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