Forex Scalping Strategies

A popular strategy among Forex traders, scalping is a very quick closing of an order as soon as a small profit is made from it. (about 10 points). Market professionals call Forex scalping strategies quite highly profitable, which allow the trader to work tens and hundreds of trades per day while maintaining a position open from just 10 seconds to 5 minutes.

The main difference between scalping

Scalping fundamentally differs from other forex trading strategies in that it allows you to make a profit from very small market movements due to many short-term transactions during the day.

What is the popularity?

Among traders, Forex scalping strategy is considered the safest method of trading. This comes from the fact that the scalper keeps the position open for a very short period of time, so the market influences the transaction less and, accordingly, the risk of losses turns out to be quite low.

Who is scalping suitable for?

Which traders can benefit from scalping on Forex? First of all, you need to remember that there are no universal profitable strategies that are suitable for every trader. You will like scalping if you take into account its features: Scalpers try not to take too much risk, so they “go” into transactions that are less profitable, but frequent and safe. makes a small profit, but the income comes from completing many transactions. As a rule, scalpers are conscientious and patient people, and also very attentive! After all, you need to carefully monitor each of the dozen transactions a day.

Scalping Strategies

Let's look at the best Forex strategies for scalping: Automatic systems (advisers). Since scalping is a very labor-intensive activity, replace the trader at the computer maybe an “advisor”. According to Russian forex guru Alexander Gerchik, when choosing an automatic program, you need to carefully familiarize yourself with its features and try it out. efficiency. Your own “work”. When the trader has accumulated enough experience, you can try to create your own Forex trading strategies for scalping. will save money and improve the efficiency of using an automatic “advisor”. At the same time, some commands for the trader can be executed by an automatic program, and some can be executed by yourself. trader. Important points for scalping on Forex strategy to bring victory When choosing scalping as a strategy, you need to remember: Choose the right broker. They offer good conditions for scalping. It is important to choose currency pairs, because not all are suitable for scalping. every trader, however, a wealth of knowledge and work experience will help in making a profit on short-term transactions. certain directions and groups: Breakthrough strategies. Strategies based on the breakdown of local or session extremes - allows you to use the potential. impulse movement. Trading strategies in the channel. The Keltner Channel and modified Bollinger Bands are used quite effectively on minute time frames, as during trend movement, as well as in flat. Scalpers actively use trading opportunities in the channel, since the boundaries of the channel serve as lines of support and resistance, which makes trading possible. maximally predictable. Strategies using technical indicators. The most popular among scalpers are oscillators - Momentum, Stochastic, RSI and their combinations. other indicators, most often with moving averages MA.

Scalpers strive to rid trading as much as possible of subjective assessment and emotions and are looking for a set of tools that would help generate the most accurate signal. Their experiments and research lead to a huge arsenal of ready-made strategies and templates, but the magic grail has not yet been found, and each trader is looking for and creating his own. Over the years, a huge number of non-standard special indicators have been developed, on the basis of which trading scalping strategies are built. templates can be downloaded from the Internet and installed in MetaTrader. Separately, you can highlight the Heiken Ashi indicator - specially designed for scalping trading. The work involves such classic tools and strategies as Japanese candlesticks and breakdown of levels or rebound from levels 4. Automatic trading systems (trading robots). Scalping requires a lot of physical and psychological stress from the trader over a long period of time. Active development of automatic trading systems. This type of trading has also been affected. The emergence of fully automated systems and semi-automatic machines frees up time for analyzing the market situation and eliminates trader from constantly monitoring the situation on the monitor. Here it’s a completely different story - the trader gives the right to make decisions to the automatic system.

Advantages and disadvantages of scalping

Scalping has its strengths and weaknesses. The advantages of this type of trading include: the lack of in-depth technical and fundamental analysis; the possibility of a large number of transactions during the day; small amounts of starting capital. Disadvantages include: greater psychological and physical stress in throughout the day; constant monitoring of the monitor; a large number of unprofitable transactions due to short-term price fluctuations, the so-called market noise