A very simple trading strategy that uses only one indicator showing the trend direction right now.
Trading Strategy Settings
- Currency pairs: AUD/USD, EUR/USD, GBP/JPY, USD/JPY, USD/CHF, USD/CAD, GOLD.
- Timeframe: Any, from M1 to D1. For intraday trading, M30 (rarely M15) is used.
- Trading time: London and New York sessions. Sometimes it is possible to trade during the Asian session.
- Risk management: After calculating the stop-loss, choose a lot size so that the risk does not exceed 2-5% of the deposit per trade.
System Indicator Setup
- Unzip the archive with indicators and templates.
- Copy the TCCI.ex4 indicator into the experts -> indicators folder.
- Copy the template into the templates folder.
- Restart the terminal.
- Open the chart for the desired currency pair.
- Apply the SaneFX template to it.
The chart should look like this:
During intraday trading, we constantly switch between H1, M30, and M15 timeframes to find the most favorable entry point. By default, the indicator has a Length parameter set to 30, which is optimal for H4 and D1 timeframes. For H1, set the value to 20, and for smaller timeframes, set it to 16.
The daily charts are most optimal for trading all six aforementioned currency pairs.
The simplest and fastest way to learn trading using the SaneFX system is super short-term trading on minute and five-minute charts. However, even when scalping, we still look at a larger timeframe (M30) to understand the direction of the longer-term trend, as trading in the direction of the higher timeframe trend is more profitable and helps avoid many losses.
Buy Order is Opened When the Following Conditions Are Met
- The TCCI indicator changed color from red to green.
- Two consecutive bullish salmon candles formed.
- Exit is performed when the indicator changes color to red.
- The stop-loss is placed no more than 10-15 points.
Sell Order is Opened When the Following Conditions Are Met
- The TCCI indicator changed color from green to red.
- Two consecutive bearish red candles formed.
- Exit is performed when the indicator changes color to green.
- The stop-loss is placed no more than 10-15 points.
Scalping on EUR/USD on a Five-Minute Chart
You can also exit the trade after a price movement of 40 points or more without waiting for the indicator to change color.
The same approach can be used on the M1 chart when trading gold.
Download Templates and Indicators
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“excerpt”: “A simple trading strategy using one indicator to show current trend direction. Ideal for scalping currencies and gold.”,
“slug”: “sane-fx-trading-strategy-scalping-currencies-gold”,
“faq_html”: “
FAQ
What is the Sane FX trading strategy?
The Sane FX trading strategy is a simple method that uses one indicator to identify the current trend direction, suitable for scalping on currencies and gold.
Which currency pairs are recommended for use with this strategy?
The recommended currency pairs include AUD/USD, EUR/USD, GBP/JPY, USD/JPY, USD/CHF, USD/CAD, and GOLD.
How do I manage risks with this strategy?
Risk management involves setting a stop-loss and choosing a lot size so that the risk per trade does not exceed 2-5% of the deposit.
”
