Lazy River Scalping Strategy Explained

Lazy river scalping strategy - bird eye river landscape
Bill Cascade   NEW 15/05/2019 00:00:00 Guides

If you’re looking for a Forex trading strategy, you may have heard of the Lazy River Scalping Strategy. Scalping is a familiar strategic reference used throughout Forex trading. Yet, not that many people are entirely sure about just what Lazy River Scalping involves. If you’re keen on accessing a more resourceful trading strategy, the Lazy River Scalping Strategy could be the one for you.

This is a fascinating method which has proven itself by way of making a successful profit. Better still, this is one strategy that you can tailor to your very own trading needs. So, if you require a change, why not read on to see what the Lazy River Scalping strategy could offer you?

The Lazy River Scalping Strategy Simplified

Basically, the Lazy River Scalping Strategy involves selecting those quicker trades. You then work on smaller time frames – repeating this many times over. This strategy aims to make a small profit and then move onto the next thing. It’s not a long-term method but rather a way of catching a quick slice of other current trends.

 

The Lazy River Scalping Strategy Broke Down

So, when applying this strategy, you’re looking to take those trades that will only need to go a shorter distance. You'll also need to be able to cash out of your position after grabbing a sizable portion of the trend. This will leave you in a good after position. Thereby, you can instantly move onto your next opportunity.

This is one of the most practical ways to get started with the Lazy River Scalping Strategy. Yet, best of all is that you only need two EMA’s (exponential moving averages) of 20 and 50 to do this.

Lazy river scalping strategy - Forex charts

You'll need to be able to cash out of your position after grabbing a sizable portion of the trend.

Setting up Your Charts When Starting with the Lazy River Scalping Strategy

The chart used for Lazy River Scalping Strategy will resemble one of the simpler of charts. This should ideally be one that anyone could read and make sense of. That includes even those with relatively little or no prior trading experience!

The point here is to make it clear and precise, so you can immediately locate those buy and sell signals. This should be achievable without needing to work through extensive charting techniques. As a guide, this is how to get started and work with your Lazy River Scalping Strategy Charts:

  • Apply your period
  • Apply your EMA on the time frame
  • Place your pending orders - for buying and selling
  • Cancel pending orders, after position entry, at the opposite side
  • Use your pips – to take profit and for stop loss
  • Any untriggered positions by end of the day leave open, waiting until one of them gets triggered
  • Continue to add other orders every day  
  • Orders should be placed for the day before midnight
  • This is Fast Scalping undertaken in the direction of breakout!

Identifying Your Trend When Accessing the Lazy River Scalping Strategy

A vital element of the Lazy River Scalping Strategy is to identify your trend. This is crucial and needs doing before even thinking about making any trade.

Lazy river scalping strategy - Trend

In this strategy, the trend becomes your friend! Thus, it’s an excellent idea to use this principle as your edge in trading here.

The Criteria for Uptrend:

  • The price should be above both 20 and 50 EMA
  • The 20 EMA should, therefore, be above the 50 EMA
  • Both the 20 and 50 EMA need to be curving upwards
  • Moving averages should not frequently be crisscrossing each other
  • The 20 EMA should rest comfortably above the 50 EMA
  • Once all these conditions are fulfilled, it’s confirmation of the pair in an uptrend. Thus, you can then begin looking for opportunities to go long on the pair.

The Criteria for Downtrend:

  • The price should be below both be 20 and 50 EMA
  • The 20 EMA should, therefore, be below the 50 EMA
  • Both of the moving averages should be turning down
  • Moving averages should not frequently be crisscrossing each other
  • The 20 EMA should be comfortably resting below the 50 EMA.
  • Once all these conditions are fulfilled, it’s confirmation of the pair in a downtrend. Thus, you can now look for opportunities to short the pair.

The Placement of Stop Loss:

Again, effortless here is the stop loss placement. You just use the most recent low and place your stop at the necessary pips below the low.

This should be done so to avoid placing it on those prices ending in 0. Such prices are often testing magnets for the marker, and you don’t want your stop loss being a magnet for price.

How to Exits and Take Profits:

There is a two-part system you can access when taking profits with the Lazy River Strategy. The first involves making a profit for half of the opposition at a 1:1 ratio of the stop loss.

This 1:1 rule is simple but also ensures a reasonable take profit that works in line with the recent market movement. This strategy offers an opportunity to maximize your profit potential. It does this through the path of least resistance. We need to remember that price, and indeed rivers will follow the path of least resistance. Thus, we know this will be a continuation since we’ve already established a trend. When stopping the trail, we look at each time a lower high is established. Then we place our pips a significant number of pips above the new high.

There is a second part to this strategy where those greatest profit potentials come into play. But, it’s here where it merely takes a level of discipline plus constant monitoring of the charts to succeed.

Why the Lazy River Scalping Method Is a Favorite with so Many Forex Traders

Lazy river scalping strategy - Man's hands on the table with charts, laptop, agenda, coffee

This strategy takes advantage of the current trends and allows traders to work in the here and now.

So, if you have a low boredom threshold, this is a perfectly suitable method. It's also ideal for those who prefer the thrill of working daily in the trading market.

It also allows you to pick it up quite quickly. This is especially so if your trading knowledge is on a good level beforehand. If so, you can work on implementing it in a relatively short time.

Furthermore, many prefer this for its ability to offer an excellent trading performance. This is in return for the best profits over a long period. So, it can be used for years to come but executed swiftly throughout the day. Thus, allowing you to implement others as well.

Potential Pros of Utilizing the Lazy River Strategy Method

  • It’s quick and easy to master the entry rules of this strategy
  • Considered one of the simpler of trading methods.
  • This is claimed as an excellent resource for successful Forex traders
  • Many suggest that the winning trades are much more frequent.
  • Here you widen profits and narrow losses
  • This strategy encourages you to stay focused on the simple aspect of watching out for the trend
  • Great for short term traders
  • Allows you to grab a small profit before moving onto your next opportunity
  • Allows you to get comfortable with it and then edit and work it to your unique trading style
  • Easy to spot your setups
  • Keeps you in line with those prevailing trends
  • Always has a tight stop loss
  • Risk is kept under control
  • The profit potential is high

Possible Cons of The Lazy River Strategy

  • Some people will suggest that the risk-reward ratio is invalid
  • It needs time and experience to manage those trades for optimal profits
  • Some will need to work this strategy for a while on a practice account and make it their own - before going live

Final Thoughts on the Lazy River Scalping Strategy

Summing up, this is one proven strategy that has a unique number of pros attached to it. But, don’t be fooled by the word Lazy in its title!

This method can indeed derive some fantastic results. Thought, it will need some initial work and effort beforehand.

Yet, the potential to make a successful product is more than possible with the Lazy River Scalping Strategy.

We strongly recommend that to fully utilize this you set up a demo account before hands and practice. Or, if you do feel a little more confident and have some trading knowledge of successful strategic already, apply this to a small account. Wherever you begin, this is one trading strategy that can be tailored to requirements. Therefore, you can work at making it your own and using it to your individual trading needs.

The Lazy River Scalping Strategy is undoubtedly an exciting trading experience for all!

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