Alligator Scalping Strategy
Time frame: 5 Min
Tag: GBPUSD
Indicators used / Settings:
Exponential moving averages
| Yellow: | Pink: |
| Ema 3 Ema 5 Ema 7 Ema 9 Ema 11 Ema 13 |
Ema 21 Ema 24 Ema 27 Ema 30 Ema 33 Ema 36 |
Ema 55 Color Red
Possible other spread betting charts:
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Spread Betting Example
Entry Rules:
When the yellow bands cross the pink bands this is your entry signal. I will present this strategy in two ways, for those that are risk averse and for those that don’t mind risk.
Spread-betting long:
Trade Long when the yellow bands cross the pink bands to the upside. The cross over of the bands should occur above the 55 EMA line.
Risk averse: The above strategy could lead to some false entries as you can see in the second diagram. For those spread betters that are risk averse, trade the rebound: After prices have broken to the upside, wait for the retracement, that is prices to come back down into the pink bands then trade long.
Spread-betting short:
Spread betting short is the opposite. Trade short when the yellow bands cross the pink bands to the downside. The cross over of the bands should occur below the 55 EMA line. for those risk averse
Exit Rules:
This is a scalping strategy, therefore keep to your money management rules.
on GBPUSD: use a target of 5-10 points and a stop loss of about 15 points. These targets could change according to what you are trading, You should determine your money management rules.
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*best time for this strategy is on the European open or after a move has started.
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Here is a spread betting example of the Alligator Scalping system strategy on GBP USD
Arrows indicate entries. the risk averse spread betters would only scalp the yellow arrows.
Here is an example of the disadvantage of this system. you might get false break outs. A risk averse trader will avoid these false breakouts, as he trades only the retracements (indicated above by the yellow arrows).
Below the spread betting example shows various entries. and the red arrow is the trader being stopped out.
