Scalping strategy

First of all for those who don't know.
Scalping = http://en.wikipedia.org/wiki/Scalping_(trading)

How does this strategy work and how do you use it.

How does it work:

The strategy goes long when

1) the low of the current candle is lower than the lower bollingerband (deviation 1)
                         AND
2) the Fast Stochastics (line D) is lower than 19
                         AND
3) if you look back their is a candle with a close at least 5 pips lower than the current candle

The strategy goes short when

1) the high of the current candle is higher than the upper bollingerband (deviation 1)
                         AND
2) the Fast Stochastics (line D) is higher than 81
                         AND
3) if you look back their is a candle with a close at least 5 pips higher than the current candle

The strategy closes a long when

1)  the high of the candle is above the upper bollingerband (deviation 2!)
2)  the open P/L > 8000 X (distance between the upper band and lower band) X number of mini lots
3) the open P/L is bigger than  MaxLoss X number of mini lots

The strategy closes a short when

1)  the low of the candle is beneath the lower bollingerband (deviation 2!)
2)  the open P/L > 8000 X (distance between the upper band and lower band) X number of mini lots
3) the open P/L is bigger than  MaxLoss X number of mini lots

How do u use this strategy:

This strategy is written for mini lots (10.000) AND charts with 5 digits after the comma!!!!

Open EU timeframe 1 min. Attach the strategy to the timeframe. Then optimize the parameters:

h1=6   => The starting hour when the strategy is allowed to take a position

h2=23 => The latest hour when the strategy is allowed to take a position

So for above example strategy can take a position from 6 AM to 23 PM

MaxLoss=50 => The maximum allowed loss in case you use 1 mini lot

minilots=1 => The number of mini lots the strategy uses

So if you put 2 minilots, maxloss will be MaxLoss * 2

offset=1 => The level for the Fast Stochastics

offset =1 gives 81 and 19

offert =2 gives 82 and 18

......

or

offset=-1 gives 79 and 21

check=40 => the number of candles the strategy has to look back to find a lower or higher

Before using this strategy you must play with the paramters until you get a setting that gives you a positive backtest. This way the strategy is optimized for the current market conditions. Test shows that this strategy works pretty well under certain market conditions. Under no conditions i advice any live trading of course but you are free to test this strategy under a DEMO account.

The code:

strategy scalper;

/* written by ctlprogrammer for EUR/USD 1 min chart */
/*Warning for demonstration purpose only, no live trading please*/
/*you can freely copy the code but plz leave this header*/
/* http://ctltrading.blogspot.com*/

input h1=6,h2=23,MaxLoss=25, minilots = 1,offset=1,check=40;

vars currentbar = 1,stoch1min(series),t=0,t1=0,t2=0,longallowed(bool),shortallowed(bool),i(number);
begin

currentbar := back(close);

if currentbar < check then return;
 
Fast_Stochastics(close,5,3);
stoch1min:=Fast_Stochastics.line_d;
 
t:=hour(timestamp[currentbar])*60;
t1:=h1*60;
t2:=h2*60;

   

longallowed:=false;
shortallowed:=false;
Bollinger_Bands(close,20,1);

if t>=t1 and t<=t2 and stoch1min[currentbar]< (20-offset) and low[currentbar]<Bollinger_Bands.line_lower[currentbar] and not short() and not long() then

  begin
        for i:=1 to check do
        begin
        if close[currentbar-5-i]<(close[currentbar]-0.0005) then longallowed:=true;
        end;
        if longallowed=true then
        begin
        buy(minilots);
        end;
  end;

if t>=t1 and t<=t2 and stoch1min[currentbar]> (80+offset)  and high[currentbar]>Bollinger_Bands.line_upper[currentbar] and not short() and not long()then

 begin
        for i:=1 to check do
        begin
        if close[currentbar-5-i]>(close[currentbar]+0.0005) then shortallowed:=true;
        end;
        if shortallowed=true then
        begin
        sell(minilots);
        end;
 end;

Bollinger_Bands(close,20,2); 
if short() and low[currentbar]<Bollinger_Bands.line_lower[currentbar] then exitshort();
if long() and high[currentbar]>Bollinger_Bands.line_upper[currentbar] then exitlong();

 Bollinger_Bands(close,20,2);  

if fpl()<-8000*minilots*(Bollinger_Bands.line_upper[currentbar]-Bollinger_Bands.line_lower[currentbar]) then
 begin
 if long() then begin alert("text","fpl BBS"); exitlong(); end;
 if short() then begin alert("text","fpl BBS"); exitshort(); end;
 end;

if fpl()<-MaxLoss*minilots then
 begin
 if long() then begin alert("text","max loss"); exitlong(); end;
 if short() then begin alert("text","max loss"); exitshort(); end;
 end;
 
  end.