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Forex Scalping Rider Strategy

    The forex scalping rider strategy is made up of the highly popular Relative Strength Index (RSI) and the Laquerre indicator.

    We will be using the RSI for trend direction (non-traditional way) and Laquerre for trade entry.

    It’s highly recommended to use this strategy on medium to high volatile currency pairs such as the EUR/USD, GBP/USD, EUR/JPY, GBP/JPY and AUD/USD.

    Scalping Setup

    Indicators: RSI (14 period), Laguerre with input settings (gamma 0.3)
    Preferred time frame(s): 1 min
    Trading sessions: EUR, US
    Preferred Currency pairs: Medium to high volatile pairs

    Download

    Download the Forex Scalping Rider Strategy for Metatrader 4.

    GBP/USD 1 Min Chart Forex Scalping Rider Example

    rsi-forex-scalping-strategy

    I use the GBP/USD on the M1 chart to illustrate both long and short trades. As you can see, the strategy gave us 50 pips (minus the spread) on 8 positions in only 3 hours. Click the chart to enlarge.

    Trading Rules

    Buy Rules:

    • Relative Strength Index (RSI) touches the 70 level
    • Wait for the Laquerre to cross above 0.15 from below

    Execute buy trade with stop below the previous swing low and exit the trade for 10 pips profit.

    Sell Rules:

    • Relative Strength Index (RSI) touches the 30 level
    • Wait for the Laquerre to cross below 0.75 from above

    Execute sell trade with stop below the previous swing high and exit the trade for 10 pips profit.