M2W – TSS... A STRATEGY BY ALOYS Mattijssen
Description
The M2W – TSS scalping strategy is designed by trader and trading coach Aloys Mattijssen. The strategy trades on momentum in the direction of the trend. The trades are quick and intraday only. Positions are never kept overnight. M2W – TSS is used to trade forex pairs (EUR/USD ...) and the German DAX market index. The strategy can be used in both NanoTrader Free and NanoTrader Full.
| Suitable for | : DAX : Forex (EUR/USD...) |
| Instruments | : Futures, CFD and forex |
| Trading type | : Day trading |
| Trading tempo | : Multiple signals every day |
The strategy in detail
M2W – TSS is short for Money 2 Work – Trade Support System. The strategy is used by Dutch trader Aloys Mattijssen. This trader started his trading career in 1986 as an options traders in Amsterdam. Aloys Mattijssen regularly writes articles for trading magazines in Holland and Germany.
The strategy can be applied manually or semi-automatically and is traded on 1-minute charts. The signals are generated by a combination of trend and momentum.
The trend is determined by the PMA price average. The PMA (Proprietary Moving Average) was developed specifically for his scalping purposes by Aloys Mattijssen. When the PMA line is red, the trend is bearish. When the PMA line is green, the trend is bullish. The PMA is calculated over 20 periods for the DAX and, 34 periods for forex pairs. Always verify your settings.
Buy and short sell signals are indicated by triangles in the chart. Green triangles are (potential) buy signals. Red triangles are (potential) short sell signals. It is possible to request an alarm (pop-up, e-mail and sound) when a signal occurs.
This example shows the red-green PMA trendline, three potential short sell signals and three potential buy signals.
The blue horizontal line is de market price at 08h00. The green horizontal line is yesterday’s highest market price. The red horizontal line is yesterday’s lowest market price.
When to open a position?
The four criteria a buy signal needs to meet are:
1. The green triangle appears.
2. The chart background turns green.
3. The candle is positive/bullish (close > open).
4. The MACD histogram lies above the zero-line and above the red reference line.
This example shows two potential buy signals. In both cases the first three criteria are met. But ...
In the case of the first signal, the MACD histogram does not lie above the zero-line. In the case of the second signal, the MACD histogram does not reach above the red reference line. Both these signals are not valid.
The four criteria a short sell signal needs to meet are:
1. The red triangle appears.
2. The chart background turns red.
3. The candle is negative/bearish (close < open).
4. The MACD histogram lies below the zero-line and below the red reference line.
This example shows two potential short sell signals. But ...
In the case of the first signal, the chart background is not red. In the case of the second signal, the MACD histogram does not reach below the reference line. Both these signals are not valid short sell signals.
When to close a position?
The M2W – TSS strategy uses a price target and a stop loss. Both the price target and the stop loss are placed at 10 points for the DAX index and at 8 pips for forex pairs. The return/risk ratio is thus 1.
The stop loss (Click Stop) and the price target (Click Target) can be placed automatically using the TradeGuard function.
This example shows a long position (+3 DAX) after a valid buy signal. The green, horizontal line is the target. The red, horizontal line is the stop. The target is reached and the position is closed with a profit.
Tip: should the trader observe that the momentum stalls after 5 pips or 6 points (DAX) then he can consider closing or reducing the position.
Practical implementation
• Select the strategy in the WHS Store folder.
• Set the parameters as described above.