scalping trading. Even if scalping is allowed, attention should be paid to the amount of spread in the selected trading instrument. This is the mean-reversing part of our strategy we wait for the price to reverse to the moving average before entering our position. Particularly, this method of trading has the largest volume of financial losses. For this reason, it is important to pick a broker with the smallest spreads, as well as the smallest commissions. The essence of the strategy will not allow for high losses, or high gains for that matter. Remember that any scalping strategies or advisors that use martingale very often result in complete loss of the deposit. However, any Forex strategy in scalping requires solid technical training, and, mandatorily, personal successful experience. Still, to increase your chances of winning trades and lower your transaction costs, aim to use this strategy only during the New York London market overlap. Stochastic Oscillator is exploited to cross over the 20 level from below. It is necessary to remember that, besides the trader, scalping imposes specific requirements for the broker's technical conditions, communications systems, characteristics of the financial asset, and especially tough requirements for trading discipline and money management.
As soon as all the items are in place, you may open a short or sell order without any hesitation. In case of manual trading, you can make a good profit in such case, but it is better to turn off the advisor. In case of their change, all tests must be run again; Placing Take Profit and Stop Loss orders is mandatory; The strategy must clearly determine the periods of lateral movement of the market; You can trust only the results of testing on a real, for. Buying when the Stochastics is above 80 isnt a wise decision, as overbought market conditions signal that the price may reverse soon. Rules for a long entry, now that we explained the main tools that were going to use, its time to see how to use the strategy in scalping the Forex market. Set-time function will be very useful when automated trading stops. It is important at the moments of the release of fundamental news, when strong price fluctuations are observed on the market.