3 rules for profitable trading with scalper advisors
In spite of the fact that scalping is one of the most technically and psychologically difficult types of trading, it has long enjoyed well-deserved popularity. Naturally, the creators of scalping Expert Advisors have not ignored it either.
At the moment, traders have access to an indescribable multitude of paid and free scalper robots, built on different principles and trading strategies. Some advisors trade only at certain hours, some trade all the time. Some EAs work better and some work worse. But, as a rule, scalping advisor shows profit for a certain period of time, after which there is a lull period and a series of trades with losses.
Often, the implementation of a particular scalping strategy in an EA reaches the point of absurdity, which leads to the closure of the broker's trading account on which such an EA is installed.
What rules should be followed when trading scalping advisors on?
Rule #1. Scalping - only at the right time
The first thing to understand is that increased volatility - The first enemy of the scalper EA, it likes when the market is calm. Therefore, if the price draws long candles, which is usually observed during the coincidence of the session, you should prohibit the Expert Advisor to trade, wait for the calm phase and only then start scalping again.
To a large extent, this applies to events in the stock market calendar. Even novice traders know that before the publication of important economic news, volatility can increase many times, so scalper-trading during this period can easily bring losses to your deposit.
The GMT Offset parameter, which reflects the difference between your broker's time and Greenwich Mean Time, is relevant for robots that trade only at certain hours (as a rule, they are night scalpers). From time to time this parameter should be checked, especially during the transition to winter or summer time.
On Fridays, when the trading week comes to an end, and during the last 2-3 days of the month, large market participants often close positions. This is also not a good time for a scalping robot, which is easy to see when testing any scalping EA.
Rule #2. When "less" is "better
The second, but no less important, point is broker selectionThe choice of a suitable spread for the currency pair on which the scalping advisor trades, the value of the commission (if any) and the speed of execution of orders.
Before setting up a scalper robot, check all these conditions. Naturally, the lower they are, the more comfortable the advisor will feel. Ideally, you can spend some time to choose a broker and an account type that will have the minimum spread and order execution time.
Rule #3. Don't be lazy to test your Expert Advisor
In addition to trading conditions, of course, you need to pay attention to the Expert Advisor itself. Using the results of testing, it is necessary to understand, what logic underlies the robotwhich Take Profit and Stop Loss sizes it sets how many trades it opens and how long it keeps them open.
Do not be lazy and test the Expert Advisor in the tester, not forgetting about the size of the spread. For example, if a scalping Expert Advisor puts a stop loss of 200-300 points (for 4-digit quotes), then it is unlikely that the word scalper will apply to it. Stop loss in a scalping robot should not exceed 50-60 points (depending on the currency pair traded), otherwise it will be a robot-overexposure, not a robot-scalper.
If residence time If a scalping advisor opens a trade for no more than 1-2 minutes, be prepared for a broker to block your trading account.
If testing shows that the average holding time of an open trade is about a few minutes, then such tests have nothing to do with the real situation, and such a robot, at best, will trade at zero, at worst, it will simply lose the deposit.
Note the the average profit per transaction. It should be at least 2 points. The number of deals - the more, the better. If the number of deals is small enough - this is a reason to suspect that the ordinary fitting to the story takes place.
However, it should be remembered that the test results are not the truth in the first instance and the actual results of future trading may not coincide with them.
If you spend a little time and follow these simple rules when testing scalping advisors and trading on a real deposit, you will see for yourself that the right choice of broker and scalper robot will allow you to get a stable profit in the market.
The main danger for scalpers is the news, you should not apply to them at all, but some do.
The news can also affect the scalper's trading. Therefore, you need not only an advisor, but also your own analysis of the market situation.
I agree. Winning begins with the head - you have to analyze the situation correctly.
The Expert Advisor should definitely be tested on a demo or cent account - only someone else's development should not be relied upon.
Advisors really are a thankless task. People are so drained, and who stopped them from thinking with their own heads?
The most important thing is not to look at just one EA, but three EAs at once.
The main thing is to delimit their work with the Magic Number parameter, so you can understand who is doing what.
The scalper also needs to be set up properly. There are a bunch of indicators. Also, the most important one is the news.
There is no way to do without diagnostics. Those who do not do it, then regret it.
Scalping is a very short position, so even seconds are important in profitable trading. The Expert Advisor needs to be well tested.
Unfortunately, on such short positions there is not enough time to compare the readings of two or three Expert Advisors. In general, scalping is quite risky in my opinion.
The scalper strategy itself is very dangerous for a beginner. A small deposit will not do, and a large one is a risk for a beginner.
I also would not risk for a beginner, it is suitable for an experienced person, because the amount is decent, if a beginner loses it, that's the end of his career.
I'll try to stick to the above rules! Let's see what happens.
even using these three rules, it's still very complicated and risky
When testing, it makes sense to try out different pairs, and choose, just with a large number of transactions, but do not rush to go to the real.
Scalpers work according to algorithms that I do not understand. Apparently it is necessary to look at several at once.
It is better to rely on your own strategy.
In any case, you can't completely rely on scalper advisors. They make mistakes, and you suffer losses.
You have to be careful with owls, especially when they are scalping.
Advisors are usually criticized and experience traders will not notice, and when trading scalping against the trend, it is more expensive to rely on them.
Even in the calmest market scalpers should not get into at the close of the session, before the news and at the opening of the Americans.
Probably, testing the advisor should be the number one rule.
Scalping can make a profit, but you have to be damn careful going against the trend.
You can use scalping, if your trading experience allows you. Against the trend, you can take a short position if the wave is calculated.
You have to be more careful with Expert Advisors. Scalpers are good, but you have to be able to rebuild them in time.
Advisors need to be watched, scalpers are good at making profits on the trend.
Scalping is a risky endeavor, and if you go in, you should be guided only by your thoughts. Advisors cannot catch such a short opportune moment.
Scalping has always been a dangerous venture. You can easily lose everything, and the gains are minimal.