The Mumbai Scalper Strategy

Learn how to use the The Mumbai Scalper Strategy. Read the article and watch the video tutorial to trade this strategy.

Name : The Mumbai Scalper Forex Strategy
Time Frame : 15 minutes and above
Indicators : Parabolic SAR (0.02, 0.2) , Stochastic Oscillator (5, 3, 3)
Strategy by : Analyst Navin Prithyani on forexwatchers.com

The Mumbai Scalper

During my travel to India, I got a chance to visit Mumbai. Here I got to experience the hustle and bustle of this financial juggernaut of India. The pace is very fast and everyone is trying to make a quick buck. This is very similar to our scalpers in the Forex industry. For this similarity I've called this strategy The Mumbai Scalper Forex Strategy.

Using this scalping forex strategy

Let's start off by opening a 15 minute chart on your desired pair. Preferably choose a forex pair with low spreads. Then attach the Parabolic SAR with the settings mentioned above. The Parabolic SAR should be used by giving us a sense of direction similar to a moving average. Once we find a trend in the market, we keep a look out for a cross in the Stochastic Oscillator to confirm the entry.

Sell Scenario

If the Parabolic SAR is in a downtrend we need to wait for a confirmation of the Stochastic Oscillator to cross above the 70 level. When these two criteria are confirmed, we enter at the opening of the next candle. The stops are kept on the high of the previous candle or they can be adjusted/tweaked as per your risk appetite.

Buy Scenario

If the Parabolic SAR is in an uptrend we need to wait for a confirmation of the Stochastic Oscillator to cross below the 30 level. When these two criteria are confirmed, we would enter at the opening of the next candle. The stops are kept on the low of the previous candle or they can be adjusted/tweaked as per your risk appetite.

Exit Strategies

Option 1
1:1 Risk to reward. If you put your stop at -12 pips, your limit will be +12 pips.

Option 2
Open 2 lots. If you put your stop at -10 pips, once your trades goes in your favour and you’re at +10 pips, close 1 lot and let the other one run. Then exit at Support and Resistance levels.

Option 3
Exit at the nearest 50 or 00 level. These are psychological levels. (make sure your exit is at least the same number of pips as your stop, otherwise don't enter the trade)

Option 4
Trailing Stop. Once in a trade, at the close of each candle, place your stop 1 pip below the low (if in a buy trade). Vice versa for sell trade.

Mumbai Scalper Forex Strategy Video Tutorial

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