Nick's M5 freebie newbie scalping method

#1
Hi Fellow Traders,

My name is nick, and i have been trading (or atleast trying to) since past 2 and half years. I went after different websites looking for a holy grail or such strategies(which do not exist trust me) to trade intraday with stocks.

Recently i came across couple of systems that forex traders have been using to trade, so i decided to take a shot at it and try demo trading with stocks but unfortunately it didnt work out.

Then i tried using them in combination and have been able to see very good results lately (I am only demo trading and will continue for atleast 15-20 days untill i trust the system)

This system i named it as "nicks freebie newbie"

Its free thus freebie and it is newbie (or beginners) friendly thus newbie

Prerequisites
1) Metatrader 4 charts -I am using this system with metatrader 4 charts for the indian stocks (in case you dont you will have to manage or you will have to see if the below mentioned indicators are available with your chart system)
2) Patience and confidence of sticking to the rules.
3) Trade highly volatile 10-15 stocks (more detail about the stocks as we move on ahead)


Indicators
a) Moving average
b) Bollinger bands
c)Commodity channel index (CCI) - trend for current time frame
d) Parabolic SAR
e)Freebie candles (Heikin ashi type of candles)
f)Multi-timeframe MTF heikin ashi - Trend indicator

I trade only with 5 minutes (M5) charts for intraday, you can also try for higher time frame if you are not intraday trader.

Rules


For Long entry
A) 1H MTF HA should be green – trend indicator
B) The 5 min candle should be green (closing inside the bollinger bands)
C) CCI should be above "0" level
D) Candle should close above the middle MA
E) Parabolic SAR coming from below the candles


For short entry

A) 1H MTF HA should be Red – trend indicator
B) The 5 min candle should be red (closing inside the bollinger bands)
C) CCI should be below "0" level
D) Candle should close above the middle MA
E) Parabolic SAR coming from above the candles

Stop loss would be the previous swing high/low
I usually go for Risk:Reward 1:1 -so my target profit depends on the stop loss.

So suppose i buy 150 shares of "X"share, so including brokerage and everything it comes to 320.30 and my stop loss is 317.30 so my target profit would be 323.30.

I usually risk only 1% of my trading account in one trade and not more that 5 trades at any given time. You guys can decide this as per your money management.

Indicators
Since i cannot upload the indicators here (or maybe i dont know how to) i will provide the names of the indicators and you guys will have to search it online or you can pm me instead if you dont find it.
1)#MT4_Heikin_ashi.ex4 or .mq4
2)Freebie candles.ex4
3) m5scalping template

Copy the indicators in experts>indicators and copy the template in template folder.

I will soon be posting live charts for you guys to see results as i dont believe in posting past cherry picked charts.

PS - I am just demo trading so i would advise you guys to do the same untill you get familiar with and trust the system.

Happy Trading
 
Last edited:
#2
Indicators
a) Moving average
b) Bollinger bands
c)Commodity channel index (CCI) - trend for current time frame
d) Parabolic SAR
e)Freebie candles (Heikin ashi type of candles)
f)Multi-timeframe MTF heikin ashi - Trend indicator
For Amibroker users a,b,c,d are standard indicators, e is easily available

f) for trend as per hourly TF HA candles can use this ribbon

Code:
_SECTION_BEGIN("HA Ribbon");
TimeFrameSet(inHourly);
HaClose = (O + H + L + C)/4;
HaOpen = AMA(Ref(HaClose,-1),0.5); 
col = IIf(HaClose >= HaOpen,colorBlue,colorRed);
TimeFrameRestore();
hacol = TimeFrameExpand(col ,inHourly);
Plot(2,"",hacol,styleNoLabel|styleOwnScale|styleArea,-1,100);
_SECTION_END();

:) Happy
 
#7
f) for trend as per hourly TF HA candles can use this ribbon
Modified code as per chart pic posted above for HTF ribbon (use a separate pane)

Code:
_SECTION_BEGIN("Multi TF HA Ribbon");
TimeFrameSet(inHourly);
HaClose1 = (O + H + L + C)/4;
HaOpen1 = AMA(Ref(HaClose1,-1),0.5); 
col1 = IIf(HaClose1 >= HaOpen1,colorBlue,colorRed);
TimeFrameRestore();
colHr = TimeFrameExpand(col1 ,inHourly);

TimeFrameSet(in1Minute*30);
HaClose2 = (O + H + L + C)/4;
HaOpen2 = AMA(Ref(HaClose2,-1),0.5); 
col2 = IIf(HaClose2 >= HaOpen2,colorBlue,colorRed);
TimeFrameRestore();
col30Min = TimeFrameExpand(col2 ,in1Minute*30);

TimeFrameSet(in15Minute);
HaClose3 = (O + H + L + C)/4;
HaOpen3 = AMA(Ref(HaClose3,-1),0.5); 
col3 = IIf(HaClose3 >= HaOpen3,colorBlue,colorRed);
TimeFrameRestore();
col15Min = TimeFrameExpand(col3 ,in15Minute);

TimeFrameSet(in5Minute);
HaClose4 = (O + H + L + C)/4;
HaOpen4 = AMA(Ref(HaClose4,-1),0.5); 
col4 = IIf(HaClose4 >= HaOpen4,colorBlue,colorRed);
TimeFrameRestore();
col5Min = TimeFrameExpand(col4 ,in5Minute);

Plot(3,"",col5Min,  styleNoLabel|styleOwnScale|styleNoLine|styleDots,-1,15,0,0,3);
Plot(6, "",col15Min,styleNoLabel|styleOwnScale|styleNoLine|styleDots,-1,15,0,0,3);
Plot(9, "",col30Min,styleNoLabel|styleOwnScale|styleNoLine|styleDots,-1,15,0,0,3);
Plot(12,"",colHr,   styleNoLabel|styleOwnScale|styleNoLine|styleDots,-1,15,0,0,3);
Title = "Hourly (Top) | 30  Minutes | 15 Minutes | (Bottom) 5 Minutes";
_SECTION_END();

:) Happy
 

Purushotham

Well-Known Member
#9
Modified code as per chart pic posted above for HTF ribbon (use a separate pane)

Code:
_SECTION_BEGIN("Multi TF HA Ribbon");
TimeFrameSet(inHourly);
HaClose1 = (O + H + L + C)/4;
HaOpen1 = AMA(Ref(HaClose1,-1),0.5); 
col1 = IIf(HaClose1 >= HaOpen1,colorBlue,colorRed);
TimeFrameRestore();
colHr = TimeFrameExpand(col1 ,inHourly);

TimeFrameSet(in1Minute*30);
HaClose2 = (O + H + L + C)/4;
HaOpen2 = AMA(Ref(HaClose2,-1),0.5); 
col2 = IIf(HaClose2 >= HaOpen2,colorBlue,colorRed);
TimeFrameRestore();
col30Min = TimeFrameExpand(col2 ,in1Minute*30);

TimeFrameSet(in15Minute);
HaClose3 = (O + H + L + C)/4;
HaOpen3 = AMA(Ref(HaClose3,-1),0.5); 
col3 = IIf(HaClose3 >= HaOpen3,colorBlue,colorRed);
TimeFrameRestore();
col15Min = TimeFrameExpand(col3 ,in15Minute);

TimeFrameSet(in5Minute);
HaClose4 = (O + H + L + C)/4;
HaOpen4 = AMA(Ref(HaClose4,-1),0.5); 
col4 = IIf(HaClose4 >= HaOpen4,colorBlue,colorRed);
TimeFrameRestore();
col5Min = TimeFrameExpand(col4 ,in5Minute);

Plot(3,"",col5Min,  styleNoLabel|styleOwnScale|styleNoLine|styleDots,-1,15,0,0,3);
Plot(6, "",col15Min,styleNoLabel|styleOwnScale|styleNoLine|styleDots,-1,15,0,0,3);
Plot(9, "",col30Min,styleNoLabel|styleOwnScale|styleNoLine|styleDots,-1,15,0,0,3);
Plot(12,"",colHr,   styleNoLabel|styleOwnScale|styleNoLine|styleDots,-1,15,0,0,3);
Title = "Hourly (Top) | 30  Minutes | 15 Minutes | (Bottom) 5 Minutes";
_SECTION_END();

:) Happy
Thanks for the code.


Using Ami 5.5 giving some errors in lines below

Plot(3,"",colHr,styleNoLabel|styleOwnScale|styleNoLine|styleDots,-1,15,0,0,3);
Plot(6, "",col30Min,styleNoLabel|styleOwnScale|styleNoLine|styleDots,-1,15,0,0,3);
Plot(9, "",col15Min,styleNoLabel|styleOwnScale|styleNoLine|styleDots,-1,15,0,0,3);
Plot(12,"",col5Min, styleNoLabel|styleOwnScale|styleNoLine|styleDots,-1,15,0,0,3);
 
#10
PNB TP achieved - but i cant post the pics

Can someone tell me how do i post images here, as i was attaching till now and it exceeded my attachment size??

Thanks!!
 
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