High
Precision 5-Minute Scalping with Machine Learning is a
trend-following strategy that leverages multivariate statistical
techniques to filter and optimize trading signals. This advanced
machine learning approach synthesizes multiple variables, enhancing
regression techniques for accurate predictions.
The ANN algorithm
processes data in chronological order, performing calculations every
4 bars to maintain efficiency and ensure a minimum spacing between
neighbors. This
strategy is designed specifically for the 5-minute timeframe and is
best suited for highly volatile instruments. It requires
configuration for each specific instrument, making it crucial to
select 4-5 volatile instruments with a win rate above 63%. An
additional trend filter, the slow MACD, further refines the strategy.
Strategy
Setup
Time
Frame: 5 minutes
Instruments:
GBPJPY, BTCUSD, Oil, Tesla, VIX, EURAUD, AUDUSD, AUDJPY, EURJPY,
NZDUSD, GBPUSD
Indicators:
Machine
Learning Lorentzian Classification (see pictures for settings)
MACD
with two options: (32, 64, 12) and very slow (64, 128, 12) – the
latter is optional due to the highly filtered nature of the Machine
Learning indicator
Trading
Rules
Buy
Signal
Machine
Learning buy arrow
MACD
> 0.
Sell
Signal
Machine
Learning sell arrow
MACD
< 0.
Exit
Strategy
Initial
stop loss below/above the previous swing low/high
Profit
target with a minimum stop loss ratio of 1.1:15 or using a trailing
stop
Conclusion
The
“High Precision 5-Minute Scalping with Machine Learning”
strategy employs machine learning and multivariate statistics to
follow trends, optimized for highly volatile instruments on a
5-minute timeframe. By performing calculations every 4 bars, it
ensures efficiency and adequate spacing between signals. Using a
Lorentzian distance metric and a slow MACD (32, 64, 12) as a trend
filter, the strategy is applicable to various currency pairs and
volatile assets like GBPJPY, BTCUSD, and Tesla. It follows clear
trading rules: buying when a machine learning buy arrow appears and
MACD is above 0, and selling when a sell arrow appears and MACD is
below 0. Exits are managed with a stop loss placed above/below the
previous swing high/low and a profit target with a minimum stop loss
ratio of 1.1:15 or a trailing stop.
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