TRADING STRATEGIES

MARIO SINGH - 17 PROVEN STRATEGIES

PIRANHA STRATEGY
By Mario Singh
OVERVIEW
 THE PIRANHA STRATEGY BY MARIO SINGH

CONCEPT

The Piranha fish is known as being a predator that takes many small bites out of it’s
prey. This is the principle which underpins the Piranha Strategy.

It’s designed as a scalping setup for the GBPUSD which allows the trader to take many
‘small chunks’ out of the market frequently over the course of the session.

The focus is only on a 5 min candle chart during times in the session where the price
action is calm and range bound. This strategy does not work well in strong trending
markets.

The trader scalps both sides of the market long and short whenever the price
touches the upper lower boundaries of a 12 period bollinger band. The trader aims to
take 5 pip chunks out of the market as the price rotates back into the middle of the
bollinger band.
USING THE BOLLINGER BAND FOR PRECISE ENTRIES

Bollinger Bands help traders measure current market levels of volatility so when
trapped in a slow moving range they are a good tool to help locate areas where the
prices will turn and rotate back in on themselves.
The key is to understand when to trust them and when to step aside.

RANGE BOUND ONLY

No strategy works 100% and like all trading techniques traders should always practice
perfecting them first in a demo account. It’s important to understand the market
conditions that are best suited to this type of scalping strategy.
The Piranha was designed for slow ranging markets and will therefore struggle during
times of heightened volatility or when the bigger time frames are trending heavily.
News events affecting the Pound or the US dollar should also be avoided to ensure the
risk of range expansion is as low as possible.
MULTIPLE TRADING OPPORTUNITIES

The Piranha is only designed to take 5 pip profits whilst risking 10 pips. Whilst it can be
tempting to try to trade to the opposite side of the band for increased gains it’s
important to remember that part of the edge in this strategy comes from multiple
small opportunities throughout the duration of a slow quite ranging market.
It’s estimated that throughout an average session the Piranha is likely to create 10-15
scalping opportunities, but remember you don’t have to trade them all!

No strategy works 100% of the time and, like all trading techniques, traders should
always practice perfecting them first in a demo account. You should also only trade
with risk capital you can afford to lose.

Check out our daily TradeTogether LIVE streams where you can watch the coaching
team trade the Piranha Strategy in live market conditions.