Forex Scalping with Liquidity Sweeps, Order Blocks, and Risk Filters
Summary
The document explains a forex scalping system based on price briefly crossing a confirmed swing high or low, then closing back through it. The system marks the sweep candle as a potential order block and waits for a later candle to break back through its body before entering. It uses ATR-based thresholds, places a stop beyond the sweep extreme, sizes a target by a fixed risk-to-reward ratio, and can filter trades by higher-timeframe EMA direction, spread, stop distance, momentum, and session hours. It also records closed-trade outcomes by bullish or bearish setup type to show a running win-rate scorecard.
The reported H1 optimization results vary by instrument: AUDUSD was notably positive over 26 trades, while GBPUSD and AMD were negative; several other results came from very small samples. A demo account run showed trade management and profit tracking functioning, but that is evidence of execution behavior rather than profitability. The author describes the system as an early build, advises testing each pair and broker, and limits its intended use to forex-style markets. The figures are historical and do not establish future performance.
Key ideas
- The setup looks for a sweep beyond a confirmed swing level followed by a close back through it.
- A later break through the sweep candle's body serves as the entry confirmation.
- ATR-based sizing and filters adapt trade thresholds to volatility and current spread.
- A higher-timeframe EMA and optional session window can restrict eligible trades.
- Reported results differ across instruments and include small samples, so they do not establish reliable profitability.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.