Forex Red Man Strategy is designed specifically for scalping on the GBP/USD currency pair and stands out for its simplicity in application on the Forex market, making it suitable for both professional traders and beginners. It uses standard indicators for analysis, allowing optimization of rules for other financial assets and trading platforms.
Input Parameters
To start trading, you will need:
- Currency pairs: any, GBP/USD recommended
- Timeframe: M5
- Trading time: 6 to 15 GMT
Indicators Used
Conduct analysis using standard indicators, so place the following filters on the chart with these parameters:
- MACD
- Parabolic SAR
- Parabolic SW
- Moving average EMA (8)
The chart should look approximately like this. To set up indicators quickly on other currency pairs, we recommend creating a template.
Market Entry and Position Management
Entry into a long position (Buy) occurs when the following conditions are met:
- most of at least one closed candle is above the moving average;
- Parabolic SAR dots are below both the price chart and the MACD indicator window;
- MACD histogram bars and moving average are above the zero line.
Trade management rules:
- stop-loss is set at 20 pips from the entry point or slightly above the second Parabolic SAR dot from the last one;
- after the trade reaches +15-20 pips, move the stop-loss to breakeven zone, then use trailing stop;
- no fixed take-profit level; exit only on stop-loss trigger.
Entry into a short position (Sell) follows the opposite conditions.
According to ForTraders.org experts, using the Forex Red Man strategy requires significant time for market monitoring, as it generates a large number of signals.
Download indicators and template for Forex Red Man strategy
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