Scalping strategy “TMT System”

Scalping strategy "TMT System"

The “TMT System” strategy also refers to scalping trading systems, but its algorithm, unlike the “Sniper X”, is based on indicators. In the ready-made template, all its instruments on the chart look like this.

You can see how visually all the tools necessary to work with the TMT System are presented. Probably, you yourself have already been able to determine that the strategy includes four indicators:

  1. “TMT EMA” (7) – moving average with a period of “7”;
  2. “TMT EMA” (20) – moving average with a period of “20”;
  3. “FxGlow RSI Meter” (8) – a histogram indicator with a period of “8”;
  4. “FxGlow MFI Meter” (15) – a histogram indicator with a period of “15”.

You can download all these tools at the end of the article. Then I recommend that you immediately arrange them into a template so that each time you do not waste time installing and configuring them separately. They are installed on the chart in the same way as all other instruments. It is more convenient for me to use the “Navigator” for this, you can use another method convenient for you.

Working principle with “TMT System”

Like any other trading system, this scalping strategy is also subject to a specific algorithm. Based on the results of this algorithm, traders are looking for signals to enter positions.

First of all, we determine the direction of the trend as follows:

1. Looking for the position of the moving average relative to the price.

  • EMA (20) lies under the price – for purchases;
  • EMA (20) is above the price – for sales.

2. We study the color indication of two histogram indicators.

  • The blue indication of both histograms indicates that we can look for entry points to open buy positions.
  • The red indication of histograms means that you can look for an opportunity to open sell positions.
  • If the histograms have different color indications, we do nothing and just wait for both indicators to turn back to the same color. It can be either red (for sales) or blue (for purchases).

We have just reviewed the rules for working with indicators. Now we can take a closer look at the conditions and signals of the TMT System to enter with a sell or a buy.

Purchase Login

Purchase Login

To purchase, we are looking for the following conditions:

  • There is an uptrend and some price retracement.
  • EMA (20) is below the price.
  • Both histograms are blue.

All conditions are met and according to the TMT System rules we can enter the market with a buy position. To do this, we need one more condition to be fulfilled – during a price rollback on an uptrend, we draw a Resistance line. As soon as it is broken by the price in the upward direction with the consolidation of the breakout candle, this will serve as a signal for us to enter:

We have an uptrend with small price pullbacks and its return to the previous trend with the breaking of the Resistance line. At the moment of breaking through, both histograms are colored the same. Blue colour. EMA (20) is below the price. The breakout candlestick is fixed behind the Resistance in the previous upward direction, at this point we enter the market with a buy.

According to the recommendations of this strategy, the Stop Loss and Take Profit ratio is 1: 1. This means that if, for example, you set the Stop Loss value at 10 points, then Take Profit must correspond to the same value. Of course, you can set Take equal to 15 or 20 points – this is at your discretion.

In this example, you can see the Stop Loss and Take Profit set according to the rules of this scalping strategy (1: 1). However, in practice, it is possible to transfer the transaction to breakeven and, if there is a good movement in our direction, accompany it in order to obtain maximum profit. True, this approach can hardly be called “scalping”.

Login with sale

The conditions for entering a sell should be as follows:

  • There is a downtrend with a slight retracement movement.
  • EMA (20) is above the price.
  • We see red lines on both histograms.

If all these conditions are met, then according to the TMT System rules, you can search for an entry point with a sale.

Here we also draw a trend line, but this will already be a Support line. Then we just have to wait for the price to break the Support from top to bottom and fix below it – here will be our entry point to the market.

During a small pullback on a downtrend, the price breaks out our Support line and is fixed below it. After this breakout, we see that the EMA (20) is now above the price, and both histograms show their lines in red. All this corresponds to the rules of entering the market with a sale.

Stop Loss and Take Profit are also set here in a 1: 1 ratio and are equal to 10 points each.

We have now completed our review of the TMT System strategy. I can only share with you my impression of trading on it and the results obtained.

Summing up

I tested this system for 2 weeks. He worked with the EUR / USD currency pair. The Stop Loss and Take Profit ratio was left in accordance with the author’s recommendations – 1: 1. I opened positions with a volume of 1 lot, with an initial deposit of $ 10,000.

I must say right away that at the beginning of the trade I had a small profit based on the results of the trade, but then there were unprofitable trades. As a result, by the end of the 2nd week of testing, I got almost $ 1000 in loss.

Only TS “Sniper X” can provide you with a break-even trade. This is a system that has been tested in practice by a huge number of traders, all of them are happy with the results of their trading. It works without indicators, relying only on levels.