VOLATILY SCALP

Thursday, August 6, 2009

Entry Setup

I grab the picture today that showing how VS_EuroCross_D05 trigger the trade with new entry rule (UseTradeRange=true). As common rule in my Volatily Scalp EA that to trigger entry the distance between price and MA must be equal or more then signal filter. The signal filter itself is comparable the maximum between double spread and current 20 Average True Range. Applying this rule will guarantee if price hit the MA at the same bar when it triggered, we will make profit as much as current spread or even more, in case the current ATR is bigger then double spread.
Back to new entry rule, it is now calculate the current range. If the current range is bigger then Signal Filter, the entry will be triggered if the distance between price and MA is equal or bigger then spread + 1 pip. But still it must penetrate upper/lower Keltner Channel. Mostly during low volatility, if the price penetrate upper/lower channel while current range is bigger then double 20 Period ATR, price will back to Moving Average.