Polygon Forex Scalper – In-Depth Review and Performance Analysis
The Polygon Forex Scalper is a short-term trading system that aims to catch fast price movements on the charts. It uses a combination of indicators to generate buy and sell signals for scalping the markets. In this comprehensive review, we will take an in-depth look at how the Polygon Forex Scalper works, its key features, performance statistics, pros and cons, and suitability for beginner traders.
Overview of the Polygon Forex Scalper System
The Polygon Forex Scalper was developed by the team at Holographic Traders to be a simple yet powerful trading system for scalping the markets. It utilizes two custom indicators – the Polygon Trend indicator and the Polygon Arrows indicator.
The Polygon Trend indicator analyzes price action and market momentum to determine the current trend. It highlights the chart background in blue during an uptrend and red during a downtrend. There is also a trend analyzer that shows the strength of the trend.
The Polygon Arrows indicator plots blue and red arrows on the chart to indicate potential entry points. Blue arrows suggest bullish momentum while red arrows suggest bearish momentum.
By combining these two indicators, the Polygon Forex Scalper aims to accurately highlight the current market trend and potential turning points. Traders can go long when the background is blue and a blue arrow appears, and go short when the background is red and a red arrow appears.
Key Features of the Polygon Forex Scalper
Here are some of the standout features of this trading system:
- Visual trend and momentum identification – The colored chart background and arrows clearly identify the trend and turning points.
- Works on any symbol and timeframe – Can be used to trade forex, stocks, commodities, cryptocurrencies etc on timeframes from 1 minute to 1 month.
- Customizable alerts – Get email, mobile or popup alerts so you don’t need to stare at the charts.
- Detailed trading manual – Comes with a PDF guide explaining how to install, optimize and trade the system.
- Active community support – Lots of active members on forums to provide tips and assistance.
- Free lifetime updates – Future upgrades and improvements are provided free of charge.
How Does the Polygon Forex Scalper Work?
The trading logic behind the Polygon Forex Scalper is relatively straightforward. Here are the key rules:
- Go long when background is blue and blue arrow appears
- Go short when background is red and red arrow appears
- Close long trades when background changes to red or red arrow appears
- Close short trades when background changes to blue or blue arrow appears
- Place stop loss below recent swing low for long trades
- Place stop loss above recent swing high for short trades
- Use a risk reward ratio of at least 1:3
By following these rules, traders can look to scalp the markets for small but consistent profits. The theory is that by entering on momentum shifts at potential turning points, the risk-reward ratio will be skewed in the trader’s favor.
The system aims to keep traders on the right side of the market by adapting to trend changes and reversals. The combination of the trend context and arrow signals provides a high probability setup for scalping.
Performance Statistics and Backtest Results
Extensive backtesting has been performed on the Polygon Forex Scalper for MetaTrader 4 to analyze its performance across different markets and timeframes.
On a EUR/USD 1 minute chart from May 2019 to September 2019, the system achieved the following results:
- Profit Factor – 2.31
- Win Rate – 64%
- Average Profit/Loss – 8.9 pips profit / -5.1 pips loss
- Max Drawdown – 154 pips
These results demonstrate that the system can generate consistent profits in scalping the EUR/USD forex pair on a 1 minute chart. The high profit factor and win rate confirms its edge, although drawdowns need to be managed.
Similar backtests were performed on stock indices, commodities and cryptocurrencies like Bitcoin and Ethereum. All tests showed strong profit factors and win rates over 60%.
The best results seem to come from trading the system on timeframes between 1 minute and 15 minutes. Performance tends to deteriorate below or above these timeframes.
Pros and Cons of the Polygon Forex Scalper
- Clear trading rules and easy to understand logic
- Visual indicators identify trends and momentum well
- Can work successfully on many different markets
- Good for short term scalping strategies
- Low cost system with good value for money
- Repainting can occur occasionally on arrows
- Needs fast execution to capture scalping moves
- Drawdowns can be sizeable if risk not managed
- Lots of signals can cause overtrading errors
- Short term trading can be stressful and tiring
Is the Polygon Forex Scalper Good for Beginners?
The Polygon Forex Scalper can definitely be used successfully by beginner traders due to its simple logic and easy-to-follow rules. The visual indicators make it straightforward to identify trading setups.
However, beginners need to be aware of the fast-paced nature of scalping the markets on short timeframes. Good mental discipline is required to follow the rules without overtrading.
It is recommended that beginner traders start out using the system on a demo account to get comfortable with it before risking real capital. The key is managing risk and not overleveraging on trades.
As long as proper risk management is employed, the Polygon Forex Scalper provides an accessible system for beginners to scalp the markets profitably.
The Polygon Forex Scalper is a robust trading system designed specifically for scalping the markets across various timeframes. The combination of its trend and momentum indicators provides high-probability setups for short term trades.
Extensive backtesting shows that it can produce consistent profits on forex pairs, commodities, stocks and cryptocurrencies when traded on timeframes between 1 minute and 15 minutes. While drawdowns need to be managed, risk-reward ratios are skewed positively.
For traders looking for an easy-to-use and visual system to scalp the markets, the Polygon Forex Scalper is definitely worth considering. As long as good risk management is implemented, it can be a profitable addition for both novice and experienced traders alike.