5 minute strategy for Forex trading
The five-minute time frame has always been considered one of the most preferable for trading using the scalping strategy on Forex; trading on it is no longer as fast as on M1, but you can still use large leverage.
The 5-minute strategy involves using the three-screen method in trading.
Which allows you to practically do without installing additional indicators. And all technical analysis of a currency pair chart comes down to a visual study of the current situation.
The 5-minute trading strategy really works and allows you to get about 10% profit from one trade, but certain conditions must exist to apply it in the Forex market.
Features of the trading strategy in 5 minutes.
The size of the deposit - in my opinion, absolutely does not matter, I traded perfectly both on a cent account with a deposit of 5 dollars, and on an ECN with a deposit of more than 2000 dollars.
Profitability – from one transaction you earn only a few points, but they amount to about 7-10 percent of the deposit amount.
Leverage – I used 1:500, and the proportion between the deposit volume and the transaction was usually 1:200.
That is, if you have $1000, a deal of 2 lots is opened. Yes, this is quite risky, but on average I had no more than one losing trade for every five profitable ones. Trading time is 4-6 am Moscow time.
The currency pair – euro/dollar – is the one that is more suitable for trading at this time.
These are, in fact, all the main ones on which the “5 Minute Forex Strategy” is carried out; then we will look at the process of opening transactions and the most successful entry points into the market.
Trading on a 5 minute time frame.
1. First of all, we are trying to determine where the price is moving from the beginning of the current day; this can be done on M15 with the appropriate scale.
The main condition is that the Forex trend must have a clearly defined direction, no matter in which direction, if the price behaves unpredictably, we postpone the transaction until the next day.
2. Now we go to the M1 chart, the rollback should end there and the price should begin to rise again, a similar situation is required on M5.
Only in this case will you get maximum profit. 3. In addition, the entry point should be in such a place that it would be clear that the price will certainly rise further. This can be confirmed by the presence on the chart of a similar trend correction , but which occurred earlier.
4. Closing the deal - I’m not particularly greedy and close the position as soon as the profit reaches several points, and with a deposit of $1000 and a volume of 2 lots, these couple of points can be $80-120.
Forex trading strategy in 5 minutes allows you to make a profit even without deep knowledge of technical analysis, and all my losing trades happened mainly when I deviated from the rules described in this example.