Scalping Forex Strategy

Discussion in 'Trading Systems and Strategies' started by Enivid, Oct 8, 2009.

  1. Enivid

    Enivid Administrator Staff Member

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    Discuss Scalping Forex Strategy here. Scalping Forex Strategy is a simple Forex trading strategy based on the high position density. You can ask any questions about this strategy here.
     
  2. fxp

    fxp Banned

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    Risk 10 to get 4. Seems like a very poor Risk:Reward ratio.
     
  3. Enivid

    Enivid Administrator Staff Member

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    Right. That's why I don't like scalping. Don't forget about the broker's spread too.
     
  4. Pinalli

    Pinalli Master Trader

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    Even i find scapling interesting as it fectes quick returns. Well, what i aim is to fulfill my target in a specified time and as soon as i accomplish it, i exit from the market.
     
  5. Forexcube

    Forexcube Master Trader

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    I prefere betimes the scalping with EURUSD (tight spread) and the EMA's 9, 20, (55, 120) on 10 sec., 30 sec. and M1 timeframes by looking at M5 and M15 in order to get a global view. Enter/Exit: with the EMA's 9/20 crossovers.

    Kindest regards
     
  6. neilboso

    neilboso Active Trader

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    It is a trading strategy that does not look to capture 50+ pip moves, rather it is more about watching the price action and getting in and out of trades for quick 5-15 pips which little by little add up.
     
  7. Aleksandar Oden

    Aleksandar Oden Active Trader

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    Forex Scalping can also be called a quick trading. It is a method where traders allow their positions to last only for a matter of seconds, to a full minute and rarely longer than that.The purpose of scalping is making small profits while exposing a trading account to a very limited risk, which is due to a quick open/close trading mode.Suppose a scalper opens a trading position of 100 000 units with EUR/USD. For each pip he will now earn $10.Closing in with only a 3 pip profit brings it up to $30 not bad for less than a minute of work…
     
  8. Enivid

    Enivid Administrator Staff Member

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    But if the price goes in the opposite direction? ;)
     
  9. pjfx

    pjfx Active Trader

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    Well I agree with you all, but i find out that one could make huge profits if he understands what I call advance scalping method. This captures between 20 to 50 per trade pips for me. A trader must learn to understand when he's scalping against and inline with the trend on any time frame. This is what determines when to come out of the trade, it will also make you to play safe. I have taken close to 30 trades this month with 29 winning and only one lose. I only incured that lose when I forgot that a news was released. so i keep out of my advance scalping method when major news release is in view.
     
  10. jacob92

    jacob92 Active Trader

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    thanks for the info.......
    its very useful for me to start a new business.....:)
     
  11. cpay

    cpay Active Trader

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    Hi pjfx,
    That your advance scalping method sounds interesting. 29 out of 30 winning trades, wao! please can i have a clear understanding of your scalping method? and if possible share with you.
     
  12. forexbaby

    forexbaby Active Trader

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    Hi Dude,
    I'm New to forex and I want to know What is it mean" EMA's 9, 20, (55, 120) on 10 sec., 30 sec. "?. In which Indicator it comes?.
    Thanks in advance
     
  13. Enivid

    Enivid Administrator Staff Member

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    In theory, automated scalping is better than manual but, in practice, the Forex brokers usually prevent traders from using the scalping expert advisors. They do it with high slippage and an increased rate of requotes. But it's possible to build an automated system that would handle properly these problems.
     
  14. claristtrader

    claristtrader Active Trader

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    i doubt, even we can create well, it but we can't run it coz many brokers not allowed scalping method, increase spread during asia session one of their ways
    to against scalper
     
  15. Enivid

    Enivid Administrator Staff Member

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    Some brokers allow scalping but only add more requotes and slippage. In this case, it's possible to optimize a scalping EA to overcome these problems.
     
  16. SimplyFX

    SimplyFX Active Trader

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    I dont like scalping myself. The risk/reward ratio is very one-sided. A risk of 10 to get a reward of 4?
     
  17. olusam

    olusam Active Trader

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    Where do i get correct news for fundamental analysis?
     
  18. Enivid

    Enivid Administrator Staff Member

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  19. graceheather

    graceheather Active Trader

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    Scalping is quick trading. And the pips generated are usually very little.

    Scalping is only good for Brokers. They made a lot of money from traders who use Scalping due to the frequency of trades...

    Personally do not favor Scalping.
     
  20. brianhutson

    brianhutson Active Trader

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    Forex scalping is the art of using leverage and a large number of short term trading to steadily increase an account. Normally, only 1-5 cores gets targeted for each trade. This type of trade remedy appeals much to the day traders and those who want to minimize the risks associated with currency exchange.
     

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