Scalping with Bamboni in Forex

Today we will consider another strategy, which, according to the idea of ​​its author, should bring a solid profit in the shortest possible time. This is a trading strategy “Scalping by Bamboni”, named after its creator – trader Bamboni. According to legend, he gave up trading, having previously shared his profitable trading strategy with the world. Let’s study its structure together, consider each of its tools and learn about the signals that it gives to the trader. We will be able to conclude whether this system is so good in practice, can we trust it?

What is Bamboni Scalping?

Let’s briefly find out what this trading system is and what indicators it is based on.

  • Its structure is based on 6 indicators, of which:
  1. 2 – these are tools from the standard MT4 package;
  2. 4 are proprietary indicators.
  • It is recommended to use this scalping strategy on the M15 TF.
  • Select a currency instrument based on the minimum spread. The author of this TS himself recommends the EUR / USD and GBP / USD currency pairs.

What is a Bamboni Template?

The “template” of any strategy means its configuration, due to the presence of certain trading instruments. It is their combination and the properties of each individual instrument that determine the principle of operation of the algorithm and the specifics of signaling each vehicle. Now we have to understand the Bamboni instruments and find out why they are needed and what signals are they giving? So, let’s start studying the list of indicators. We will look at them in order, gradually adding them to the graph.

Paramon scalp

This indicator is proposed by the author as an auxiliary tool. However, if it is not used at all, then the system itself will not suffer, and the trader will not notice the “loss of a soldier”. Its signals on the chart are a pair of colored (pink and blue) parallel lines of the same length. These lines show the trader where to place pending orders:

  • blue line – place a Buy Stop order;
  • pink line – place a Sell Stop order.

Despite the not very good attitude of traders to this indicator, the author of “Bamboni” declared it the main instrument of his strategy. We will take this fact into account, taking it as the basic instrument of the trading system under consideration.

Fisher_Yur4ik itself belongs to the group of oscillators and at the same time belongs to the group of histogram indicators and helps the trader to determine, respectively, the strength and direction of the trend. On the chart, the instrument is displayed as a histogram that is above / below its zero level:

  • If the histogram lies above the “0” level, it is colored green – entry by buy;
  • The histogram is located below the “0” level and is colored red – this is one of the sell entry signals.

The use of Fisher_Yur4ik in this strategy is solely due to these rules. In its properties, the trader can change only the color palette of the histogram display, the value of the period value (the number of candles taken into account by the tool in the analysis). By default this value is “10”, we leave it untouched.

EAsctrend using i_trend

This is another auxiliary tool that carries the information load. On the chart, its window is located in the upper right of the window (or in the lower right, depending on the version of the instrument itself). In addition, in a separate window, the tool draws two of its curves in red and green.

The crossing of these curves is another signal for Bamboni to enter the market under certain conditions. Remember that you can only look at the intersection from the bottom up, and nothing else, for both of these cases.

Signal_Bars_v6

The author of the strategy also does not refer this tool to the basic tools of this strategy. It performs an information function, informing the trader about the asset price, spread size, etc. A very convenient tool for scalping.

Fractals

This is an additional indicator included in the package of standard MT4 instruments. In the TS we are considering, it performs the only function and serves to determine the trend.

Moving Average

This is a moving average known to everyone, which for a given vehicle must be set on the chart twice with different settings:

  • simple moving average_1:
  1. period – “100”;
  2. shift – “0”;
  3. method MA – “Simple”;
  4. apply to – “Close”;
  5. color – “red”;
  6. typeface – “straight line”;
  7. the boldness of the line is “1”.
  • simple moving average_2:
  1. period – “200”;
  2. shift – “0”;
  3. method MA – “Simple”;
  4. apply to – “Close”;
  5. Green colour”;
  6. typeface – “straight line”;
  7. the boldness of the line is “1”.

Signals of both Moving Average indicators are the intersection of their curves of the Japanese candlestick body:

  • the green curve crosses the body of the closing bullish candlestick – enter with a buy;
  • the red curve crosses the body of the closing bearish candlestick – enter with a sell.

Bamboni Trading Rules

Bamboni Trading Rules

Please note that according to the terms of this TS, as an example, when looking for points of entry into the market by Buy / Sell, you should select:

  • Currency instrument – GBP / USD.
  • TF – M15.

Sell ​​entry (short position)

Here you should wait for 4 signals, but they should all be executed simultaneously and be practically on the same vertical:

  • The red Moving Average curve crosses the body of the bearish candlestick and closes below the same curve.
  • The candlestick closes below this curve – this is the Sell entry point.
  • The red curve of the EAsctrend using i_trend indicator crosses the green curve upwards.
  • The histogram of the Fisher_Yur4ik indicator is colored red.

Closing a Sell position: the deal is closed as soon as the Fisher_Yur4ik histogram changes color from red to green. We transfer the deal to breakeven in time!

Opening a deal:

  • opening price – 1.2885
  • closing price – 1.2857
  • Stop Loss level -1.2905

The deal has worked itself out, the profit is 28 points.

Buy entry (long position)

We enter by Buy also after receiving 4 signals, almost simultaneous and lying on the same vertical:

  • The green Moving Average curve crosses the body of the bullish candle from bottom to top.
  • The candlestick closes above the curve – this is the Buy entry point.
  • The green curve of the EAsctrend using i_trend indicator crosses the red line from bottom to top.
  • The histogram of the Fisher_Yur4ik indicator is colored green.

Closing a Buy position: a deal is closed by a signal from Fisher_Yur4ik – when the green color of the histogram changes to red. Do not forget about the transfer of the transaction to breakeven!

All the necessary buy entry signals have been received, open a position:

  • opening price – 1.2966
  • closing price – 1.3029
  • Stop Loss level -1.2941

The closing signal has not been received yet, but the profit is already 63 pips. You can close the position with this profit or follow the deal further, waiting for the corresponding signal from the Fisher_Yur4ik indicator.

Note that:

  • Stop Loss under the terms of this strategy is fixed (in both directions) and is equal to 25 points.
  • Trailing Stop for any position is set at 25-35 points.

General characteristics of the strategy

When testing Bamboni Scalping, both the advantages and some disadvantages of this trading system are revealed.

Let’s start with the disadvantages:

  • Frequent closing of trades by Stop

Due to the fact that the strategy gives a negligible number of entry signals, it is not very convenient to work with it on TF M15. Too many profitable market situations are missed if you trade only Bamboni. If we had other trading instruments in our hands, we would clearly have earned more.

  • Rare Entry Signals

According to the rules of this strategy, several conditions must be simultaneously observed, which happens extremely rarely on the chart. More often, a picture is observed when the moving indicators do not cross the body of the candle, but simply “hover” above / below it, cross it at the very tail, or barely touch the edge of the body.

  • It’s hard to make a profit

The signal from Fisher_Yur4ik to close a deal is very inconvenient. During testing, it was found that the deal at this moment is not always in the “+”. If you ignore the rules and follow the deal further, you can take a good profit. Bamboni’s terms and conditions do not provide for such a development. The author himself recommends using Trailing Stops to maintain a position.

Now about the “good”:

  • Fewer entry signals means less risk.
  • As a “scalping” system, this system implies quick withdrawal of profit, regardless of its size. However, it can be used like:
  1. long-term strategy, if you do not close the deal on the signal of the histogram, but lead it to profit;
  2. short-term trading (pending orders using the “Paramon Scalp” indicator).
  • A good trading result could be obtained using one indicator – Paramon Scalp. It does not participate in trading by general strategy signals, and the author himself “declared” it as “auxiliary”. When tested separately, the tool showed a good result, whether to use it in this strategy or not is up to you. Unlike the indicators in the “basement”, he gave more frequent and correct signals to enter.
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