In September 2011 when SNB
introduced 1.2 floor, the pair EURCHF has been trading in
relatively tight range reaching the highest value at 1.264. Since
September 2012, I have been using a simple scalping strategy for that
pair and it helped me to earn 20% per month on average.
The strategy is based on the assumption that 1.2 floor will remain. Well, in the past year and a half
SNB has been very successful in defending that floor and it states
that will continue to defend it with utmost determination. It is
realistic to believe that in the long term the pair will not only remain above the floor, but also will return to
the values that are much higher than the current one, as Europe and USA are slowly coming out of the recession.
The prerequisite for the scalping strategy is that your broker has a small spread on EURCHF pair (not
higher than 2.5 pips) and a positive swap on long entry. If your broker
does not meet these demands, try the strategy with a different one.
If you have a problem with finding such broker I warmly recommend
Exness, I have been trading with them for the past six months and I am
very satisfied. Another prerequisite is that the price of the pair
is lower than 1.24.
The strategy itself is
very simple, enter the long trade following the rules for any other
scalping strategy. I was very successful using a 5min blue trend rider and THV3. Just
in case, when I enter the trade, I always put stop loss at 1.1980
level. Next, wait till exit rule for your scalping strategy is met
(by scalping strategy I meant here 5min blue trend rider or THV3), and if your
trade is in gain exit the trade. If your trade is not in gain leave
it and wait till it will become profitable. Swap is working in your
way now! In the meantime, you can enter another trade on a new long entry
signal. In a period while I was using the strategy I never had more
than four trades opened.
Money management I was
using is 0.1 lots for every $400 on my account balance and I am
careful that I have enough money for 4 trades. So, if I have $1600 on
my account, it will be enough for four 0.1 long trades.
