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:
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!