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.

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