HIGH FREQUENCY SCALPER SYSTEM VERSION 4

USER MANUAL

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High Frequency Scalper System Version 4

Is trading software designed by HFT-TEAM for all MT5 Asset classes, specially
Volatility Index, provided by Deriv Broker. Before we go deep into explaining How to use the
software, I would like to explain a bit the mean concept of Volatility index.

What Is the Volatility Index (VIX)?

The Cboe Volatility Index (VIX) is a real-time index that represents the market’s expectations
for the relative strength of near-term price changes of the S&P 500 Index (SPX). Because it is
derived from the prices of SPX index options with near-term expiration dates, it generates a
30-day forward projection of volatility.1 Volatility, or how fast prices change, is often seen as a
way to gauge market sentiment, and in particular the degree of fear among market
participants.
The index is more commonly known by its ticker symbol and is often referred to simply as “the
VIX.” It was created by the Cboe Options Exchange (Cboe) and is maintained by Cboe Global
Markets. It is an important index in the world of trading and investment because it provides a
quantifiable measure of market risk and investors’ sentiments.

SYSTEM FEATURES:
 Only for MT5;
 Trade all Asset available on MT5;
 Specially for Volatility Index;
 All Time-frames;
 Accuracy rate: 90%;
 Drawdown: 10 %;
 No recalculation.NOTE: The Risk reward may vary drastically at this accuracy level.

SYSTEM COMPONENTS:
1. HFS -Dash Board;
2. HFS - Price filter;
3. HFS - Wave Indicator;
4. HFS - Trend Indicator Arrows;
5. HFS - Trend Scanner
6. HFS - Supply and Demand Zones;
1. HFS -Dash Board

The Moving Averages Trend Dashboard MT5 indicator displays buy and sell arrows for
multiple timeframes. This Meta trader 5 indicator makes it very easy for everyone to see the
short-term and long-term trend for any volatility asset or forex pair.
This is a technical indicator that provides information about the market conditions . The
indicator was created in order to provide investors with real-time insights into the health of
the markets and to allow them to make informed investment decisions.
It works by calculating the average high and low price of a currency pair over a period of time.
IT also shows extra information such as Spread, range and candlestick patterns in case they
are present on particular asset .
I'm going to cover more on how to use it along the way

.2. HFS - Price filter(heiken ashi )

What Is the Heikin-Ashi -Price filter

The Heikin-Ashi technique averages price data to create a Japanese candlestick chart that
filters out market noise.
Heikin-Ashi charts, developed by Munehisa Homma in the 1700s, share some characteristics

with standard candlestick charts but differ based on the values used to create each candle.
Instead of using the open, high, low, and close like standard candlestick charts, the Heikin-Ashi
technique uses a modified formula based on two-period averages. This gives the chart a
smoother appearance, making it easier to spots trends and reversals, but also obscures gaps
and some price data.

What Does Heikin-Ashi Tell You?

The Heikin-Ashi technique is used by technical traders to identify a given trend more easily.
Hollow white (or green) candles with no lower shadows are used to signal a strong up trend,
while filled black (or red) candles with no upper shadow are used to identify a strong down
trend.

Reversal candlesticks using the Heikin-Ashi technique are similar to traditional candlestick
reversal patterns; they have small bodies and long upper and lower shadows. There are no
gaps on a Heikin-Ashi chart as the current candle is calculated using information from the
previous candle.

Because the Heikin-Ashi technique smooths price information over two periods, it makes
trends, price patterns, and reversal points easier to spot. Candles on a traditional candlestick
chart frequently change from up to down, which can make them difficult to interpret. Heikin-
Ashi charts typically have more consecutive colored candles, helping traders to identify past
price movements easily.

The Heikin-Ashi technique reduces false trading signals in sideways and choppy markets to
help traders avoid placing trades during these times. For example, instead of getting two false
reversal candles before a trend commences, a trader who uses the Heikin-Ashi technique is
likely only to receive the valid signal.

2. HFS - Wave Indicator

Waves MTF is an indicator that can be used with the Meta Trader 5 platform, its main purpose
is to show the real waves of four different time-frames on the currently active chart. It will
monitor the formation of waves in real-time and will inform the trader when the waves are
completely formed.
The algorithm that the indicator uses does not use Zig Zags, it is mainly useful for those traders
who apply wave analysis based on the Elliot wave theory. It can be used with any instrument
or asset including currencies, stocks, gold, indices, and more without needing to make any
adjustments.

There are also a few parameters available, these include the number of bars to use, working
bars, timeframes to use, and whether to show the waves fro different timeframes.

The information we mostly look at here is the move.

4-HFS - Trend Indicator Arrows(TRIX)

What Is Triple Exponential Average (TRIX)?

The triple exponential average (TRIX) is a momentum indicator used by technical traders that
shows the percentage change in a moving average that has been smoothed exponentially three
times. The triple smoothing of moving averages is designed to filter out price movements that
are considered insignificant or unimportant. TRIX is also implemented by technical traders to
produce signals that are similar in nature to the moving average convergence divergence
(MACD).

HFS - Trend Indicator Arrows(TRIX)- Its MT5 modified version designed based on TRIX
concept with new features (Arrows).

.6-Supply and Demand Zones

They can vary with time when broken or rejected by price action, there are fours differents
supports and resistances zones;
The markets for forex, futures, stocks, and bonds all have different characteristics that define
their respective trading sessions for a given day, and the primary trading hours naturally differ
from one country to another due to contrasting time zones.

.7-Trend Scanner

What is Trend Scanner?

Trend scanner is a force indicator designed to determine the direction and strength of the current
market trend.
Its operation is based on the values of the double smoothed exponential moving average(DSEMA)
which allows to make a more profitable trade with a small number of false signals, one of the best
indicator that quickly identifies a new trend, the indicator can be used in conjunction with price
action and candlestick analysis..

HOW TO USE THE SYSTEM?

SELLING CENARIO

We must take into consideration these 4 scenarios before we take a position.

1-On Dashboard we have SELL momentum on DAILY PERSPECTIVE;
2-On Trend Scanner “SELL” on DAILY PERSPECTIVE;
3-On TRIX we have SELL Dot and MA crossing;
4-Resistance zone with Red Sell Arrow
With this all 4 criteria we can take sell position on this asset keeping in mind that the system
was designed for scalping purpose.

BUYING CENARIO

We must take into consideration these 3 scenarios before we take a position.

1-On Dashboard we have BUY momentum on DAILY PERPECTIVE;
2-On Trend Scanner “BUY” Based on DAILY PERSPECTIVE;
3-On TRIX we have BUY arrow and MA crossing;
4-Support Zone with Green Buy Arrow
With this all 4 criteria we can take BUY position on this asset keeping in mind that the
system was designed for scalping purpose.

NO TRADE CENARIO

CENARIO

1-BUY
2- BUY
3-SELL
4-SELL

In these cenário we have signals conflicting (1 and 2)

We take no position here.

CENARIO 2
1-SELL
2-SELL
3-BUY
4-BUY

In these cenário we have signals conflicting (1)

We take no position here.

CENARIO

1-BUY
2-SELL
3-SELL
4-SELL

these cenário we have signals conflicting (2)

We take no position here.

IMPORTANT:

WHAT IS THE BEST TIMEFRAME?

We recommend that every user must focus only on 15 minutes timeframe (M15) and we also
recommend to approach scalping style

There can be more scenarios on how to not take any position, what you as user must keep in
mind is, all the 4 criteria of taking position must be in alignment .

EXIT POINTS

WE simply exiting position when:

1- You have reached your profitability target;

2- When it hits your stop loss or a take profit level;
3- When the reasons why you entered a trade change;
Some important Trading RULES

Rule 1: Always Use a Trading Plan

A trading plan is a written set of rules that specifies a trader's entry, exit, and money
management criteria for every purchase.

With today's technology, it is easy to test a trading idea before risking real money. Known as
back-testing, this practice allows you to apply your trading idea using historical data and
determine if it is viable. Once a plan has been developed and back-testing shows good results,
the plan can be used in real trading.

Rule 2: Treat Trading Like a Business

To be successful, you must approach trading as a full- or part-time business, not as a hobby or
a job.

If it's approached as a hobby, there is no real commitment to learning. If it's a job, it can be
frustrating because there is no regular paycheck.

Trading is a business and incurs expenses, losses, taxes, uncertainty, stress, and risk. As a
trader, you are essentially a small business owner and you must research and strategize to
maximize your business's potential.

Rule 3: Use Technology to Your Advantage

Trading is a competitive business. It's safe to assume that the person sitting on the other side
of a trade is taking full advantage of all of the available technology.
Charting platforms give traders an infinite variety of ways to view and analyze the markets.
Back-testing an idea using historical data prevents costly missteps. Getting market updates via
smartphone allows us to monitor trades anywhere. Technology that we take for granted, like a
high-speed internet connection, can greatly increase trading performance.

Using technology to your advantage, and keeping current with new products, can be fun and
rewarding in trading.

Rule 4: Protect Your Trading Capital

Saving enough money to fund a trading account takes a great deal of time and effort. It can be
even more difficult if you have to do it twice.
It is important to note that protecting your trading capital is not synonymous with never
experiencing a losing trade. All traders have losing trades. Protecting capital entails not taking
unnecessary risks and doing everything you can to preserve your trading business.
Rule 5: Become a Student of the Markets
Think of it as continuing education. Traders need to remain focused on learning more each day.
It is important to remember that understanding the markets, and all of their intricacies, is an
ongoing, lifelong process.

Hard research allows traders to understand the facts, like what the different economic reports
mean. Focus and observation allow traders to sharpen their instincts and learn the nuances.
World politics, news events, economic trends—even the weather—all have an impact on the
markets. The market environment is dynamic. The more traders understand the past and
current markets, the better prepared they are to face the future.
Rule 6: Risk Only What You Can Afford to Lose

Before you start using real cash, make sure that all of the money in that trading account is
truly expendable. If it's not, the trader should keep saving until it is.
Money in a trading account should not be allocated for the kids' college tuition or paying the
mortgage. Traders must never allow themselves to think they are simply borrowing money
from these other important obligations.
Losing money is traumatic enough. It is even more so if it is capital that should have never
been risked in the first place.

Rule 7: Develop a Methodology Based on Facts

Taking the time to develop a sound trading methodology is worth the effort. It may be
tempting to believe in the "so easy it's like printing money" trading scams that are prevalent
on the internet. But facts, not emotions or hope, should be the inspiration behind developing a
trading plan.
Traders who are not in a hurry to learn typically have an easier time sifting through all of the
information available on the internet. Consider this: if you were to start a new career, more
than likely you would need to study at a college or university for at least a year or two before
you were qualified to even apply for a position in the new field. Learning how to trade
demands at least the same amount of time and fact-driven research and study.

Rule 8: Always Use a Stop Loss

A stop loss is a predetermined amount of risk that a trader is willing to accept with each trade.
The stop loss can be a dollar amount or percentage, but either way, it limits the trader's
exposure during a trade. Using a stop loss can take some of the stress out of trading since we
know that we will only lose X amount on any given trade.
Not having a stop loss is bad practice, even if it leads to a winning trade. Exiting with a stop
loss, and therefore having a losing trade, is still good trading if it falls within the trading plan's
rules.
The ideal is to exit all trades with a profit, but that is not realistic. Using a protective stop loss
helps ensure that losses and risks are limited.

Rule 9: Know When to Stop Trading

There are two reasons to stop trading: an ineffective trading plan, and an ineffective trader.
An ineffective trading plan shows much greater losses than were anticipated in historical
testing. That happens. Markets may have changed, or volatility may have lessened. For
whatever reason, the trading plan simply is not performing as expected.
Stay unemotional and businesslike. It's time to reevaluate the trading plan and make a few
changes or to start over with a new trading plan.
An unsuccessful trading plan is a problem that needs to be solved. It is not necessarily the end
of the trading business.

An ineffective trader is one who makes a trading plan but is unable to follow it. External stress,
poor habits, and lack of physical activity can all contribute to this problem. A trader who is notin
peak condition for trading should consider taking a break. After any difficulties and
challenges have been dealt with, the trader can return to business.

Rule 10: Keep Trading in Perspective

Stay focused on the big picture when trading. A losing trade should not surprise us; It's a part
of trading. A winning trade is just one step along the path to a profitable business. It is the
cumulative profits that make a difference.
Once a trader accepts wins and losses as part of the business, emotions will have less of an
effect on trading performance. That is not to say that we cannot be excited about a particularly
fruitful trade, but we must keep in mind that a losing trade is never far off.
Setting realistic goals is an essential part of keeping trading in perspective. Your business
should earn a reasonable return in a reasonable amount of time. If you expect to be a multi-
millionaire by Tuesday, you're setting yourself up for failure.

Conclusion
Understanding the importance of each of these trading rules, and how they work together, can
help a trader establish a viable trading business. Trading is hard work, and traders who have
the discipline and patience to follow these rules can increase their odds of success in a very
competitive arena.