This forex trading strategy is designed for short-term or pip-scalping trades and is well-suited for algorithmic automation.
Markets: Forex;
Indicators: EMA (120), Laguerre, CCI (14);
Timeframe: M5;
Currency Pair: EUR/USD;
Strategy Type: scalping;
Trading Hours: 22:00 – 06:00 GMT;
Risk Management: StopLoss, TakeProfit, TrailingStop.
Indicator Settings
- Apply the Exponential Moving Average (EMA) with period 120 to Median Price ((High + Low) / 2);
- Configure the Laguerre indicator with levels at 0, 0.1, 0.9, and 1;
- Set the Commodity Channel Index (CCI) with period 14 and thresholds at +5 and −5.
Entry Rules
Open a buy trade when all of the following conditions are met:
- The current candle’s EMA (120) value is higher than the previous candle’s — i.e., the EMA is rising;
- The Laguerre indicator reads exactly 0;
- CCI (14) is below −5.
TakeProfit is set at 10–15 pips, or use a TrailingStop to move StopLoss into profit. Initial StopLoss is placed 10–15 pips below entry. Close the trade or tighten StopLoss toward the current price if the Laguerre indicator rises above 0.9.
Open a sell trade when all of the following conditions are met:
- The current candle’s EMA (120) value is lower than the previous candle’s — i.e., the EMA is falling;
- The Laguerre indicator reads exactly 1;
- CCI (14) is above +5.
TakeProfit is set at 10–15 pips, or use a TrailingStop to trail StopLoss in profit. Initial StopLoss is placed 10–15 pips above entry. Close the trade or tighten StopLoss toward the current price if the Laguerre indicator falls below 0.1.
Once profit reaches +5–7 pips, move StopLoss to breakeven — a 1-pip TrailingStop works well for this. Note that signal reliability increases during the 22:00–06:00 GMT session, coinciding with overlapping London and New York market hours.
Laguerre, CCI, and EMA indicators + MT4 template
FAQ
What time frame and pair does this strategy work best on?
It is optimized for the M5 chart and EUR/USD, especially during the 22:00–06:00 GMT window when liquidity and volatility peak.
How do I configure the Laguerre indicator correctly?
Set levels at 0, 0.1, 0.9, and 1 — these act as dynamic overbought/oversold thresholds; entries trigger only at exact 0 (buy) or 1 (sell).
Can this strategy be automated in MetaTrader 4?
Yes — the included MT4 template and custom indicators support full EA integration; trailing stop and breakeven logic can be coded directly.
