The Tricolor scalping strategy uses three EMAs and two modified Stochastic oscillators on the M1 timeframe to generate high-probability entries during the European session on low-spread pairs like EURUSD.
Apply it with EMA periods of 63, 102, and 165, plus Stochastics (15,3,9) and (30,6,18). Download the custom indicators for precise signals.
Entry and Exit Rules
To open a buy position, EMA(63) must be above EMA(102), which is above EMA(165). The slow Stochastic (30,6,18) enters below 10, while the fast Stochastic (15,3,9) is in oversold and crosses above 20.
Fig. 1. Entry rules for buying according to the Tricolor trading strategy.
Enter buy immediately after the fast Stochastic crosses 20. Set Stop Loss at 5 points plus spread. Set Take Profit at 10 points plus spread.
Sell rules are the mirror opposite.
Fig. 2. Entry rules for selling according to the Tricolor trading strategy.
Backtest Results
Original rules failed on EURUSD M1 backtests, showing flat balance growth.
Fig. 3. Balance chart of the strategy tested according to the original rules.
Optimized parameters delivered strong results:
EMA settings:
- ma_up_period = 63
- ma_center_period = 102
- ma_dw_period = 165
Slow Stochastic:
- stoh_slow_kp = 30
- stoh_slow_dp = 6
- stoh_slow_sl = 18
- stoh_slow_urup = 90
Fast Stochastic:
- stoh_fast_kp = 15
- stoh_fast_dp = 3
- stoh_fast_sl = 9
- stoh_fast_urup = 80
Fig. 4. Balance chart of the strategy after optimization (2012.11.29 06:37 – 2013.03.28).
From $300 initial deposit, it achieved over 1000% profit in four months with fixed lots and no major drawdowns.
Demo Account Monitoring
Live demo test on EURUSD M1:
- Broker: Gamma Markets LTD
- Platform: MetaTrader 4
- Deposit: $1000
- Type: Demo
- Pair: EURUSD
- Timeframe: M1
- Hours: 24/7
- Start: 28.03.2013
- End: 27.06.2013
FAQ
What timeframe and pairs work best for Tricolor scalping?
M1 timeframe during European session on low-spread pairs like EURUSD.
What are the exact buy entry conditions?
EMAs aligned bullishly (63>102>165), slow Stoch below 10, fast Stoch crossing above 20 from oversold.
Did backtests show profitability?
Optimized settings yielded over 1000% profit from $300 in 4 months on EURUSD M1 with minimal drawdown.
