How to choose the right Expert Advisor for scalping
The market of free Expert Advisors at the moment is diverse and cannot even be estimated. Anyone can easily find and download the Expert Advisor he is interested in.Resources offer a wide range of trading robots, ranging from the simplest, working on the basis of a simple oscillator and moving averages, to pseudo-intelligent self-learning trading systems. However, the trader is faced with the most important task, and that is to choose the right Expert Advisor. Today let's talk about how to choose the right one. scalping advisor.
The agony of choosing an Expert Advisor for scalping
There are a lot of scalping Expert Advisors on the web. There are paid, there are free, simple and complex. Some scalpers are more like scalpers, being satisfied with just a few pips of profit. Some trading robots can trade only at certain hours or only on certain currency pairs. In general, it is a lot of choice.
The principles laid down in the EA for scalping, in fact, not very different, but sometimes the algorithm of the EA is built so wrong that such trading can lead to intervention broker .
In order to choose the right one scalping advisorThere is a set of simple rules that will help the trader to find the right expert among the piles of unnecessary junk.
Rules for choosing an Expert Advisor for scalping
First of all, you should not pay attention to advertising enticements "100500% for a month," and should delve into the algorithm laid down in the scalping advisor. The experts of ForTader.ru magazine have already written about that, How to analyze a trading strategy of an Expert Advisor So it's not worth stopping there.
Look carefully at the size of stop loss and take profit orders set by the scalping Expert Advisor, estimate the frequency of transactions and the lifetime of each trade.
If scalping advisor If a scalper puts a stop loss of 200 pips or neglects it altogether, such a scalper can be safely thrown out. Uncontrolled risk is not our method.
Classic order size stop loss for a scalping Expert Advisor - about 50 pips. If the robot sets a much larger stop loss, it means that it is doing it "for show", and the losses are simply sitting idle. I don't think we need to explain the consequences of over sitting.
The lifetime of a trade is also very important. If a deal opened by a scalping advisor "lives" less than 1-2 minutes, there is a very high probability that the broker can block your trading account.
For a more complete analysis you can Test the scalping advisor in the strategy tester MetaTrader 4 platform. Since we are dealing with a scalper, special attention should be paid to the spread with which the testing was conducted.
If scalping advisor When testing will show the lifetime of the transactions within two minutes - these results will have nothing to do with real trading.
Evaluate the average profit of an EA scalper, it should not be less than 2 pips. The number of trades for a scalping robot cannot be small either. Otherwise - it is just fitting the history.
It is worth noting right away that the test results and the real results of scalper trading will always be different because while testing the quotes archive is represented not by a broker, but by Metaquotes server, which, as you know, are different things.
Rules of trading for scalping advisor
So, scalping advisor has been selected, tested and found to meet all the requirements for it. All that remains is to "hang" it on the chart with the selected currency pair and start sewing money bags? It is not that simple. Trading using a scalping Expert Advisor has a number of features, which we will consider.
Expert Advisor for Scalping very much does not like sharp price jumps, so it is better to trade scalping robot in a calm market. In the case of long candles on the chart, it is best to wait a few hours until the passions on the market subside, the number of players becomes less, and only after that allow the scalping advisor to trade.
It is very important to always be guided by events economic calendar . If in the next few hours there is an important stock market event, such as an interest rate announcement or the publication of such an indicator as NonFarm Payrolls, it is very likely that the scalping advisor will "scalp" you a tangible loss.
Look carefully at the settings of the scalping robot. If it is designed to trade only during strictly designated hours, then its settings include the GMT Offset parameter - the time shift between your broker's time and Greenwich Mean Time. It is very important to monitor the correctness of this shift and correct it in case of switching to winter or summer time.
As a rule, on the last trading day of the week and at the end of the trading month, big players fix profits, which again causes sharp price spikes, increasing the likelihood of a loss.
Another nuance of trading with an EA for scalping is the right choice of a broker. In order to avoid "eating up" the profit gained, it is necessary to choose the broker with the smallest spreadAnd at the same time, do not forget about the time of execution of orders.
As you can see for yourself, in order to choose the right scalping advisor and trade profitably, you don't have to be a jack-of-all-trades. It is enough to apply logic and follow simple but effective rules.