Sign In with Google
Sign In with Facebook
The strategies we have prepared for you today are a unique work of professional traders from our Purple Trading Club. Not only do they actively engage in trading on a daily basis, but they also invest a lot of time in further self-realization and also in passing on their many years of experience to those who are a little less experienced.
As the name suggests, the main topic of this article will be two strategies, the first of which related to silver trading comes from Purple Trading Club member Milan Kleban, who first embarked on his trading career in the infamous year 2008. Today, Milan specializes most in silver and forex.
The second strategy, which we will show and analyze here, is scalping the DAX from Jaroslav Tupý, a trading expert, lecturer, and longtime member of the Purple Trading Club, who has been active on the Czech trading scene for more than 25 years. At the beginning of his career, Jarda often worked as a futures trader for foreign companies, but today he holds the position of a private investor, who also tries to pass on his many years of experience to others.
Intraday strategy for silver trading according to Milan Kleban
After gold, oil, and some currency pairs, silver is one of the most traded markets, which is also the reason why we are coming up with one unique strategy today, with the help of which it is possible to start trading the movements of this precious metal successfully.
The basis for this strategy is the main trend, which is determined using the chart D1, Milan also looks at the correlation with gold or the currency pair EUR / USD, which together with the price development of silver on H1 serve as confirming elements and pivots. , on the basis of which it finally realizes inputs and outputs from trading positions.
The daily goal of this Milan strategy is to achieve 4-7 trades with an average appreciation of 12-20 pips, which according to his long-term experience is no problem at all.
Example of a positive correlation between gold (top) and silver (bottom)
Procedure from entry to exit
Scenario No. 1 - significantly better variant
- Entry made on the M15 when the market reaches one of the designated S / R zones
- Stop-Loss not set at this time
- Take-Profit set in the range of 12-20 pips
- All the while trying to comply with the RRR 1: 1
Scenario # 2 - when everything is not going according to plan
- If the market loses 20 or more pips, another position of the same volume is opened
- Take-Profit reset to the level of the 1st input -> profit from the 1st position = approx. 0, profit from the 2nd position = approx. 20 and more pips
- Stop-Loss set at a distance of 40 pips from the 1st input -> loss from the 1st position = approx. 40 pips, loss from the 2nd position = approx. 20 or less pips
Scalping strategy on DAX
High-speed business strategies, which to some extent include scalping, are among the most widely used strategies in general. Scalping, in contrast to longer-term strategies, has a number of advantages, the most important of which is probably the avoidance of night trading and therefore the saving from fees for holding a position overnight. Another indisputable advantage is that the trader has the opportunity to trade with very little capital due to scalping, as he is not forced to hold as many reserve funds as in longer-term strategies, where a lack of reserves can cause forced closing of trading positions.
Scalping pullbacks and continuing the trend according to J. Tupý
A pullback is created in every trending market. In simplicity, it is a state when the market moves in one direction (in a trend) for some time and then a local correction is created (short-term movement against the trend). It is better to see everything in the chart below, where the so-called local maxima are marked with red lines, after which the market created a correction.
How to scalp DAX?
The scalping strategies of DAX by J. Tupý are based on places where markets create local maxima (increasing trend) and minima (decreasing trend). And after Pullback and return, or breaking the maximum/minimum, then usually comes into the trade in the direction of the trend.
Stop-Loss and Take-Profit are usually set in a 1: 2 ratio, but the final setting is a very subjective matter and everyone can choose this ratio according to their own ideas.
Scalping with the help of Range Bars according to J. Tupý
This is similar to the strategy used above, but the most important difference is that trading does not take place with the help of time candles, but so-called "Range" candles, which are generated on the basis of a specified range (see chart below).
Therefore, the Range candles are all the same length, and a new one is created only when the body together with the wick (Note: Range candles can never have both wicks, always only one or none) reaches the desired range.
If you are interested in trying trading on your own with first-class trading conditions and a professional forex broker, then do not hesitate to try our demo account, which can be set up on our website completely free of charge and without risk here: www.purple-trading.com/en
We wish many profitable deals!
Purple Trading team
info@purple-trading.com
+420 228 882 352 Mo-Fr, 8:00 A.M. – 4:00 P.M. (CET)
Tied agent address: Vinohradská 2828/151, Praha 3, Flora
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.1% of retail investors lose their capital when trading CFDs with this provider. This value was determined within the period from 01 July 2020 - 30 June 2021. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trading forex exchange with margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could lose part or all of your initial investment and therefore you should not invest money that you cannot afford to lose. Seek independent advice if you have any doubts.
Any opinions, news, research, analysis, prices, or other information contained on this material is provided as general market commentary, and does not constitute investment advice. L.F. Investment Limited will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
Purple Trading is a trade name owned and operated by L.F. Investment Limited., a licensed Cyprus Investment Firm regulated by the CySEC lic. no. 271/15.
