Scalping Strategy “Colibri”

Published:13 February 2018 Updated:4 January 2024

If you want to maximize your deposit as quickly as possible, the best solution is to trade in scalping. It is for this kind of high-frequency trading today we offer you the “Colibri” trading system, thanks to which you can get up to 300% of capital growth in a week of trading. It works on all foreign currency assets and is suitable even for inexperienced traders.

 

Principle of operation

This strategy is based on signals indicators Moving average and RSIThe settings of which are specially formatted to determine the slightest changes in the value of the asset, suitable for the transaction. Moving Average, as a trending indicatoris used in the system in two parameter variants and in the double exponential type, which provides MA lines on the chart with additional smoothing.

RSI indicator as a filter for MA signals oscillatorThe signal is applied with a reduced period, allowing you to enter the market on the signals, the duration of which will be enough to close the deal with a profit. Thus, you will receive signals of short-term changes in market trends and conclude about 10 deals per hour of trading.

 

Template Setup

If you have chosen to trade as a professional terminalYou can easily adjust the pattern of this technique on the chart. We will use the company’s platform as an example INTRADE.BARThe following is an example of a device that is equipped with a proper set of functions – a set of built-in indicators with the function of additional adjustment and a large-format chart of quotations with second timeframes. We also recommend to pay attention to the platforms of such reliable brokers: PocketOption, Binarium, Binomo (bonus 100% to deposit by promo code REVIEWEEK100Activate).

After opening a chart of an asset with moderate volatility, you must install the indicators used in the system with the settings listed below:

  • MA – type 2-exponential, period 7,
  • MA – type 2-exponential, period 12,
  • RSI- period 8, levels 50/50.

To trade in scalping mode, you should use a 15s chart interval, and if you want to slow down the trading mode a little, you can also work with a 30s interval. The chart of quotations on your terminal after adjustment should look like this:

Scalping Strategy "Colibri"

 

Colibri Strategy Contracting Rules

Your main task in trading on this tactic is to identify the signal indicator and promptly make a contract on it. Indicators will inform about the short-term changes in the trend in the form of crossing in a certain direction of the double exponentials, and the movement of the zonal line RSI above/below the 50 level. The deal should be made as soon as the indicators appear, to have time before the price turns to move in a new direction.

Predict appreciation is necessary under conditions when:

  • double exponentials crossed each other in the upper direction, reporting a new trend in the market,
  • The zonal line has crossed the trend line upwards, confirming the reversal of quotations.

In the screenshot below, you can see how these indicators appear on the chart:

Scalping strategy "Colibri": buying a binary option KOLL

Predict impairment is necessary under conditions when:

  • double exponentials crossed each other in the lower direction, reporting a new trend in the market,
  • The zonal line has crossed the trend line downwards, confirming the reversal of quotations.

In the screenshot below, you can see how these indicators appear on the chart:

Scalping strategy "Colibri": buying a binary option PUT

As you can see, the signals in this strategy are highly cyclical, and their accuracy allows you to profit in 85% trades.

 

Expiration time

On a 15s timeframe, 2 minutes is the appropriate expiry time for open positions, and if you reduce the trading dynamics to a 30s interval, then the expiry time for bets should be set at 3 minutes. During this time the price of the asset will have time to make a breakthrough in a new direction and will not have time to reverse before the expiry time. Therefore, if you follow all the rules of trading on this strategy, it will work with the provided efficiency.

 

Money Management

In the high-frequency trading mode, the amount of risk in each transaction should be reduced to 2-3% of the deposit volume. It will allow avoiding the drawdown at a series of unsuccessful contracts. With a small operating capital trading should be carried out by 1-dollar lots. For example, this size of the minimum deal is available in the company Intrade.Bar.

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Reviews

  • Having practiced on this strategy, it gives a high percentage of passability, thanks to the author for the excellent material. On a 15 second chart, minute contracts perform best.

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