Introduction

The Global Momentum Scalper is an advanced trading strategy implemented within the Global Algorithmic Trading Software (GATS1). This strategy is designed to exploit swift market trends on the M1 chart, with confirmations from higher timeframes such as M5, M15, and M30. It combines various technical indicators and market parameters to generate precise buy and sell signals, making it a powerful tool for high-frequency traders.

Key Components of the Global Momentum Scalper

1. Color-Coded EMA Zones: The strategy uses color-coded Exponential Moving Average (EMA) zones to visualize the current market structure and trend direction. These zones help in identifying potential entry and exit points.
2. Heiken Ashi Smoothed (HAS) Candles and Time Bars: HAS candles and HAS time bars are used for additional trend confirmation, providing a clearer view of market trends.
3. MACD Indicator: Specific settings for the MACD (Moving Average Convergence Divergence) indicator are used, adjusted based on the EMA zone. The MACD helps in identifying the momentum and potential reversal points in the market.
4. Dynamic Adaptive ATR Trailing Stop (DAATS): DAATS is set at 34 times the Average True Range (ATR) over a selected period, providing dynamic stop losses and profit targets based on market volatility. This ensures effective risk management.
5. Additional Confirmatory Indicators:
   • ITrend Indicator: Helps in identifying momentum and trend reversals.
   • PATS-Stop Indicator: Aids in confirming signals.
   • ADX Wilder: Verifies the existence of a strong trend.
   • Global GMACD: Confirms the overall market direction.

Specific Timeframe and Settings

• Timeframe: M1 (1-minute)
• EMA Zones:
  • Momentum Zone (Lime Green): EMA 1 to EMA 8
  • Acceleration Zone (Medium Sea Green): EMA 9 to EMA 15
  • Transition Zone (Pale Green): EMA 16 to EMA 25
  • Value Zone (Light Gray): EMA 26 to EMA 50
  • Correction Zone (Light Coral): EMA 51 to EMA 89
  • Trend Reassessment Zone (Salmon): EMA 90 to EMA 140
  • Long-term Trend Zone (Brick Red): EMA 141 to EMA 200
• MACD Settings: Fast Length (5), Slow Length (8), Signal Length (3)
• DAATS Settings: DATR Period (200), Multiplier (34)
• MEMH: 0.6375 * DAATS
• Break-Even Point: 32.875% times MEMH

Buy and Sell Signal Parameters

• Global Buy Signal Parameters:
  • Color-coded EMA Zones indicate a Bullish Market Structure.
  • Global HAS candles are Blue.
  • DAATS is situated below the candles.
  • Global Time Bars for M1, M5, M15, and M30 are BLUE.
  • Global I-Trend’s Green Line is above the Red Line.
  • Global ADX surpasses 20.
  • Global GMACD Signal reflects an upward trend.

Upon meeting these conditions, GATS places a long trade, risking a maximum of 0.01% to 1% of Free Equity. DAATS is positioned at 34 times the ATR. A Global Profit Target is established with a Reward-to-Risk Ratio of 3:1, yielding a maximum profit target of 102 ATR. The trade is regulated with DAATS of 34 times the ATR.

• Global Sell Signal Parameters:
  • Color-coded EMA Zones indicate a Bearish Market Structure.
  • Global HAS candles are RED.
  • DAATS is situated above the candles.
  • Global Time Bars for M1, M5, M15, and M30 are RED.
  • Global I-Trend’s Green Line is below the Red Line.
  • Global ADX surpasses 20.
  • Global GMACD Signal reflects a downward trend.

Upon meeting these conditions, GATS executes a short trade, adhering to similar risk, DAATS, and profit target parameters as the buy signal.

Detailed Trade Commentary

The attached statement provides a comprehensive overview of trades executed using the Global Momentum Scalper strategy within GATS. The statement reveals both the profits and losses incurred, demonstrating the dynamic nature of the strategy. Below is a summary of key trades:

1. Trade on EURUSD:
   • Entry Price: 1.07178
   • Stop-Loss: 1.07036
   • Take-Profit: 1.13308
   • Result: Stop-Loss hit, resulting in a loss of -462.92 USD.
2. Trade on AUDUSD:
   • Entry Price: 0.65292
   • Stop-Loss: 0.65261
   • Take-Profit: 0.70832
   • Result: Stop-Loss hit, resulting in a loss of -111.91 USD.
3. Trade on GBPUSD:
   • Entry Price: 1.25378
   • Stop-Loss: 1.25158
   • Take-Profit: 1.33398
   • Result: Stop-Loss hit, resulting in a loss of -550.00 USD.
4. Trade on USDJPY:
   • Entry Price: 156.177
   • Stop-Loss: 155.109
   • Take-Profit: 167.937
   • Result: Stop-Loss hit, resulting in a loss of -1,149.88 USD.

Despite these losses, the strategy also shows significant profitable trades:

1. Trade on USDCHF:
   • Entry Price: 0.91626
   • Stop-Loss: 0.91291
   • Take-Profit: 0.85375
   • Result: Profit of 1,166.93 USD.
2. Trade on USDCAD:
   • Entry Price: 1.36992
   • Stop-Loss: 1.36756
   • Take-Profit: 1.27502
   • Result: Profit of 1,813.71 USD.

The statement indicates the robust nature of the Global Momentum Scalper strategy, leveraging precise technical indicators and dynamic stop-loss settings to manage risk and optimize returns. By adhering to Gann’s concepts and integrating them into GATS, the strategy aims to capitalize on swift market movements, providing traders with a powerful tool for high-frequency trading

About the Author: Dr. Glen Brown

Dr. Glen Brown is the President & CEO of Global Accountancy Institute, Inc., and Global Financial Engineering, Inc. With a Ph.D. in Investments and Finance, Dr. Brown has over 25 years of experience in the financial and accounting sectors. His expertise spans across financial accounting, management accounting, finance, investments, strategic management, and risk management. As a Chief Financial Engineer, Head of Trading & Investments, and Chief Data Scientist, Dr. Brown has developed innovative solutions for the financial markets, including the renowned Global Algorithmic Trading Software (GATS). He is dedicated to nurturing the next generation of financial professionals and fostering an environment of innovation, leadership, and success.

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General Disclaimer

Disclaimer: Trading in financial markets involves significant risk and may not be suitable for all investors. The strategies and tools described in this article, including the Global Algorithmic Trading Software (GATS) and the Global Momentum Scalper strategy, are provided for informational purposes only and do not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research and consult with a qualified financial advisor before making any trading decisions.