Forex Scalping Strategy | Forex Strategy
Forex scalping strategy- is a simple system that trusts in the nearest objectives, in the stop-loss extremely low and the large number of open positions and closed for a short period of time. Not all Forex brokers allow scalping and not all are good for allowing it. The scalping may not be suitable for all traders and, personally, I do not recommend anyone scalping. The simplest system Forex scalping is represented here.
Characteristics of this Forex Strategy
- Buenos benefits fortunate traders (intuitive).
- No need to deal with technical analysis, fundamental analysis or any other.
- Spreads spend much of the benefit.
- The ratio of reward / risk is usually very low.
- Not all Forex brokers allow scalping.
- It takes a long time to operate and observe.
How to Trade?
# Currency pairs with a large but low volatility entropy spreads are recommended (EUR / JPY, GBP / USD, EUR / USD and USD / JPY are good examples).
# M1 is optimal period.
# The optimal time for trading is at the intersections of sessions European / US trading. UU. and EE. UU./ Asian.
# Prepare to enter positions to observe market activity for 5-15 minutes.
# When you think you have “captured” the current trend in the short term, enter the position.
# Set stop-loss at about 10 pips.
# The general rule for the profit target is one or one and a half spreads. Putting the take-profit at such low levels (2-5 pips) is almost impossible, so you will have to observe the position to see the goal and close the hand.
Example of Forex scalping strategy
The sample chart is not presented for this system of trading because there is nothing important to show in the graph. Let’s look at the following examples.
- You open the long position in EUR / USD with 10 stop-loss and target of 4 pips profit. After 20 seconds the position reaches the profit of 4 pips and you close.
- You open the short position in GBP / USD with 10 stop-loss and target of 4 pips profit. After 3-4 minutes the trend unexpectedly changes its direction and the position is closed by stop-loss.
- You open the short position in USD / JPY with 10 stop-loss and target of 3 pips profit. After about 1 minute the position 4 reaches the benefit pips and you will close.
- You open the long position in EUR / JPY with 10 stop-loss and target profit of 5 pips. After 5 seconds the spigot and the position reaches the profit 12 pips and you close.
- The profit of 10 pips is for less than 6 minutes. Of course, it is strictly hypothetical.