Automated Scalping Signals with TP/SL Indicator [QuantAlgo]

🟢 Overview

The Automated Scalping Signals with Take Profit & Stop Loss Indicator is a multi-timeframe trading system that combines market structure analysis with directional bias filtering to identify potential scalping opportunities. It detects Points of Interest (POI) including Fair Value Gaps (FVG) and Order Blocks (OB) while cross-referencing entries with higher timeframe exponential moving average positioning to create systematic entry conditions.

The indicator features adaptive timeframe calculations that automatically scale analysis periods based on your chart timeframe, maintaining consistent analytical relationships across different trading sessions. It provides integrated trade management with stop loss calculation methods, configurable risk-reward ratios, and real-time performance tracking through dashboard displays showing trade statistics, bias direction, and active position status.

This advanced system is designed for low timeframe trading, typically performing optimally on 1 to 15-minute charts across popular instruments such as XAUUSD, MES1!, ES1!, MNQ1!, YM1!, MYM1!, BTCUSDT.P, ETHUSDT.P, or any asset and timeframe of your preference.

🟢 How It Works

The indicator operates using a dual-timeframe mathematical framework where higher timeframe exponential moving averages establish directional bias through cross-over analysis, while simultaneously scanning for specific market structure patterns on the POI timeframe. The timeframe calculation engine uses multiplication factors to determine analysis periods, ensuring the bias timeframe provides trend context while the POI timeframe captures structural formations.

The structural analysis begins with FVG detection, which systematically scans price action to identify imbalances where gaps exist between consecutive candle ranges with no overlapping wicks. When such gaps are detected, the algorithm measures their size against minimum thresholds to filter out insignificant formations. Concurrently, OB recognition analyzes three-candle sequences, examining specific open/close relationships that indicate potential institutional accumulation zones. Once these structural patterns are identified, the algorithm cross-references them against the higher timeframe bias direction, creating a validation filter that only permits entries aligned with the prevailing EMA cross-over state. When price subsequently intersects these validated POI zones, entry signals generate with the system calculating entry levels at zone midpoints, then applying the selected stop loss methodology combined with the configured risk-reward ratio to determine take profit placement.

To mirror realistic trading conditions, the indicator incorporates configurable slippage calculations that account for execution differences between intended and actual fill prices. When trades reach their take profit or stop loss levels, the algorithm applies slippage adjustments that worsen the exit prices in a conservative manner - reducing take profit fills and increasing stop loss impact. This approach ensures backtesting results reflect more realistic performance expectations by accounting for spread costs, market volatility during execution, and liquidity constraints that occur in live trading environments.

It also has a performance dashboard that continuously tracks and displays comprehensive trading metrics:


1/ Bias TF / POI TF: Displays the calculated timeframes used for bias analysis and POI detection, showing the actual periods (e.g., "15m / 5m") that result from the multiplier settings to confirm proper adaptive timeframe selection

2/ Bias Direction: Shows current market trend assessment (Bullish, Bearish, or Sideways) derived from EMA cross-over analysis to indicate which trade directions align with prevailing momentum

3/ Data Processing: Indicates how many price bars have been analyzed by the system, helping users verify if complete historical data has been processed for comprehensive strategy validation

4/ Total Trades: Displays the cumulative number of completed trades plus any active positions, providing volume assessment for statistical significance of other metrics

5/ Wins/Losses: Shows the raw count of profitable versus unprofitable trades, offering immediate insight into strategy effectiveness frequency

6/ Win Rate: Reveals the percentage of successful trades, where values above 50% generally indicate effective entry timing and values below suggest strategy refinement needs

7/ Total R-Multiple: Displays cumulative risk-reward performance across all trades, with positive values demonstrating profitable system operation and negative values indicating net losses requiring analysis

8/ Average R Win/Loss: Shows average risk-reward ratios for winning and losing trades separately, where winning averages approaching the configured take profit ratio indicate minimal slippage impact while losing averages near -1.0 suggest effective stop loss execution

9/ TP Ratio / Slippage: Displays the configured take profit ratio and slippage settings with calculated performance impact, showing how execution costs affect actual versus theoretical returns

10/ Profit Factor: Calculates the ratio of total winning amounts to total losing amounts, where values above 1.5 suggest robust profitability, values between 1.0-1.5 indicate modest success, and values below 1.0 show net losses

11/ Maximum Drawdown: Tracks the largest peak-to-trough decline in R-multiple terms, with smaller negative values indicating better capital preservation and risk control during losing streaks

🟢 How to Use

Start by applying the indicator to your chart and observe its performance across different market conditions to understand how it identifies bias direction and POI formations. Then navigate to the settings panel to configure the Bias Timeframe Multiplier for trend context sensitivity and POI Timeframe Multiplier for structural analysis frequency according to your trading preference and objectives.

Next, fine-tune the EMA periods in Bias Settings to control trend detection sensitivity and select your preferred POI types based on your analytical preference. Proceed to configure your Risk Management approach by selecting from the available stop loss calculation methods and setting the Take Profit ratio that aligns with your risk tolerance and profit objectives. Complete the setup by customizing Display Settings to control table visibility and trade visualization elements, adjusting UI positioning and colors for optimal chart readability, then activate Alert Conditions for automated notifications on trade entries, exits, and bias direction changes to support systematic trade management.

🟢 Examples

XAUUSD

MES1!

ES1!

MNQ1!

YM1!

BTCUSDT.P

SOLUSD


*Disclaimer: Past performance is not indicative of future results. None of our statements, claims, or signals from our indicators are intended to be financial advice. All trading involves substantial risk of loss, not just upside potential. Users are highly recommended to carefully consider their financial situation and risk tolerance before trading.