PinkFlint Scalping Trading Strategy: Two Approaches to Scalping

The PinkFlint trading system uses two approaches. The first is ultra-short-term trading during news releases (usually not recommended to trade on news, but the following will explain how to do it safely). The second is regular scalping using indicators and two screens (or timeframes).

Trading Strategy Setup:

• Currency pairs: Any high-volatility currency pairs.
• Timeframe: M1, M5, M15.
• Trading time: London and New York trading sessions (or Asian if trading the yen).
• Risk management: After calculating the stop-loss, choose a lot size so that the risk is no more than 3% of the deposit per trade.

Setting Up the System Indicators:

1. Unzip the template and indicator archive.
2. Copy the indicators to the MQL -> indicators folder.
3. Copy the templates to the templates folder.
4. Restart the terminal.
5. Open the chart for the desired currency pair.
6. Install the template named 4-pinkflint.

The chart should look like this:

Setting Up Moving Averages

Exponential Moving Average with period 14 (EMA 14)

In the list of standard indicators, find moving average and install it on the chart with the following parameters:

• Period – 14
• Shift – 0
• MA Method: Exponential
• Apply to – Close
• Style – Magenta

Exponential Moving Average with period 21 (EMA 21)

• Period – 21
• Shift – 0
• MA Method: Exponential
• Apply to – Close
• Style – DarkRange/Red

Exponential Moving Average with period 40 (EMA 40)

• Period – 40
• Shift – 0
• MA Method: Exponential
• Apply to – Close
• Style – LawnGreen

Now the chart looks like this:

Signals Indicating Long Position Entry (Buy):

As mentioned earlier, the system uses two approaches: news trading and regular scalping.

News Trading

1. Study the news chart that most strongly affects the following currency pairs: EURUSD, GBPUSD, AUDUSD, EURJPY, USDCAD, and NZDUSD.
2. Five minutes before the news release, open the M5 timeframe for the desired currency pair and set two pending orders in opposite directions at a distance of 20 points from the current price.
3. Each order’s stop loss should be equal to 30 points.
4. After the news release and the activation of one of the orders, close the trade manually when a profit of 5 points or more is achieved.

Regular Scalping

1. On the 15-minute chart, one or more of the following conditions must be met:
   1. The price is above EMA 21.
   2. EMA14 is above EMA 21, indicating an uptrend. Sometimes you can check moving averages with periods of 5 and 8. They should also be above EMA 21.
   3. The ADX indicator line is upward trending and is above the 30 level.
   4. Slope trend lines are directed upwards.
2. On the M1 timeframe, one or both of the following conditions must be met:
   1. Slope trend lines are directed upwards.
   2. The ADX indicator line is upward trending or above the 30 level.
3. Entry into the trade occurs when one of the following conditions is met:
   1. The price breaks through the resistance level or the nearest local maximum on the timeframe M1 or M15.
   2. The price bounces off the lower trend line on the M1 or M15 timeframe.
   3. The price retraces to the 21-period moving average (or a smaller moving average).
4. Stop loss is placed at a distance of 30 points or at the level of the previous local minimum. When a profit of 5 points is achieved, the position is moved to break-even.
5. Exit the trade when a profit of 5 points or more is achieved.

Example:

Signals Indicating Short Position Entry (Sell):

News Trading

The working algorithm is the same as in the previous case.

Regular Scalping

1. On the 15-minute chart, one or more of the following conditions must be met:
   1. The price is below EMA 21.

   2. FAQ

      What currency pairs are recommended for the PinkFlint strategy?

      High-volatility currency pairs are recommended, including EURUSD, GBPUSD, AUDUSD, EURJPY, USDCAD, and NZDUSD.

      How are stop-loss and risk managed in the strategy?

      A stop-loss is set at 30 points, and the lot size is chosen so that the risk per trade does not exceed 3% of the deposit.

      What conditions trigger a long or short trade?

      A long trade is triggered by price breaks above resistance, bounces off trend lines, or retracement to moving averages. A short trade is triggered when the price is below EMA 21 on the 15-minute chart.