Scalping - a trading strategy

In this chapter we will talk about Scalping tactics — стратегии торговли для начинающих трейдеров. Почему мы отнесли её к стратегиям для новичков? Потому что, она очень проста в применении, и освоить её сможет каждый начинающий трейдер, обладающий опытом работы в терминале MetaTrader 4 на демо-счете. Чуть позже, мы подробно рассмотрим одну очень прибыльную стратегию на основе scalpingbut first let's talk a little bit about the concept itself pips.

Marketplace: ;
Trading Indicators: Scalper_MA, Channel;
TimeframeM1, M30;
Strategy: scalping, pipsing;
Protective orders: StopLoss, TakeProfit.

Scalping (pipsing) - A strategy based on the principle of quickly opening and closing positions on 1-5 minute charts in order to make a profit that covers the spread. That is, as soon as the profit on the open position becomes positive and satisfies the trader, the order is closed. Based on this definition, traders have come up with an alternative name for scalping - piping (Pipsing, catching pips). If you come across the term "pipsing", you know that we are talking about scalping.

A characteristic feature of scalping is, in the first place, large number of transactions to be made. In 1 day a trader can make from 30 to 1,000 trades. In most cases, when pipsing charts are used M1 (1 minute) and M5 (5 minutes). A scalper needs a lot of leverage to trade successfully. The vast majority of scalpers use 1:200 to 1:500 leverage. For example, with 1:500 leverage it is possible to open a 1 lot position with only 200$ as collateral. A little later we will talk in detail about each rule underlying scalping.

Among professional traders scalping is not popular because many traders piping is associated with meaningless risk and a lack of a clear entry and exit strategy. This is partly true, but not quite (more on that later). Today there are a huge number of different strategies based on scalping for different currency pairs and timeframes (time periods). But as we wrote above, the main principle of his strategy is only 1 - "Get your profits in time".

In order for you to better understand the basics scalping strategiesLet's identify the main advantages and disadvantages of this trading strategy.

Advantages of scalping (pipsing) on :

— При удачных сделках, хорошая прибыль в размере 10-30% (зависит от уровня риска) от размера депозита в день.
— Не нужно изучать технический и фундаментальный анализ. Для торговли при помощи scalping it is only necessary to use the rules for opening and closing a position. We will discuss the basic rules of scalping a little later.
— Free entrance to the market. No need to wait for the trend to appear, because you can trade at any time of the day, on any type of trend.

The disadvantages of scalping (pipsing) on :

— Сильное нервное напряжение при игре на реальном счете. Приготовьтесь к тому, чтобы запастись успокоительными. Никогда не знаешь, что для вас уготовит тренд.

— При большом кредитном плече, piping A position at random can lose your deposit if the trend reverses sharply.
— Lack of free time when manual scalping. During manual trading, whether you like it or not, you will be constantly watching the open position. Of course you can leave for a couple of minutes for tea, but that rarely works out for anyone. Due to the nervous tension you cannot tear yourself away from the terminal, especially when profit becomes more than zero.
— In order for your profit to exceed the zero mark, the price must rise by the size of the spread. That is, initially the transaction will always be in deficit by the value of the spread.

— Некоторые брокеры вместо спрэда практикуют использование снятия процентов с открытых сделок, другими словами с вас будут снимать коммисионные. В таких случаях необходимо покрыть размер коммисионных в сделках scalping.
— High risk with low profit. Risking all of their funds from each transaction, you will have 1-2$. With a large number of profitable trades you can, of course, have a solid profit of 10-30% per day (depending on the deposit and transaction volume). But, as we wrote above, any small movement can kill your deposit in a few seconds.
— Многие брокеры завышают значения ордеров TakeProfit и StopLoss. У большинства брокеров Вы не сможете установить стоп ордер ближе 5-ти пунктов от цены. Если же вы используете только ручную торговлю, у вас не будет времени установить стоп ордера. На данный пункт необходимо обратить внимание только тем, кто использует механическую торговую систему на основе scalping.

Before summarizing whether or not scalping is worthwhile when playing in a real account, let's list The rules behind scalping.

— Прибыль должна покрывать размер спрэда. При спрэде в размере 2 пункта, ордер можно закрывать при повышении курса на 3-5 пунктов.
— Большинство scalpers operate with a value of 5 points.
— Используйте minute charts (M1). The minute chart is best for scalpingIt's the fastest way to display fluctuations in quotations.
— Используйте максимальное кредитное плечо. При небольшом депозите, большое кредитное плечо намного расширить ваши возможности. Для кредитного плеча 1:500 достаточно 20$ чтобы открыть позицию объемом 0.1 лот.

With the right strategy, scalping turns into a very profitable trading system. The following is an example of a profitable trading system based on the rules scalping.

Profitable strategy based on scalping

This trading system, unlike analogues, is relatively new. It is based on the use of 2 indicators in combination with the classical rules of constructing a trading system based on scalping.

First, you need to install two indicators for scalping: Scalper_MA и Channel. To install, move the downloaded indicators to MetaTrader 4 в папку — \experts\indicators. Then start (restart) the terminal MetaTrader 4. We will trade on the currency pair GBPUSD (you can work on any currency pair). Timeframe, как и рекомендовали, — M1 для Scalper_MA и M30 для Channel.

Opening trades by scalping strategy

The basis of the strategy is the M1 chart with the Scalper_MA indicator installed on it. In fact, it points us to open trades.

— Стрелка вверх - open a buy position (buy).
— Down arrow - open a sell position (sell).

The order opens only after the price changes more than 2 points in the direction in which the signal showed. Also, we wait for the appearance of 7 red or blue bars below.

That is, if the signal indicator Scalper_MA to buy, wait until the price increases by more than 2 points and passes 7 bars. Only then open a buy order, if the situation has not changed. Also, the Channel indicator signals on the timeframe M30 should be taken into account. It is necessary for smoothing of noises. The order open only if signal directions of both indicators coincide. That is, when the signal Scalper_MA on M1 appears on the bay, we switch to M30; the order opens only if the Channel indicator tunnel is directed upwards on M30. If the tunnel is directed downwards or it is horizontal, it is not recommended to open the order.

Exiting the scalping strategy

Close the order when you receive the desired profit. I advise to be limited by profit 1-3 points from one transaction (for the lot of 0.1, 1 point = 1$, for the lot of 1, 1 point = 10$). If at trade, you are going to use stop orders, we recommend to expose them as follows:

For a Dealer Center with 5 decimal places TakeProfit = 30, StopLoss = 100. For BC with 4 decimal places TakeProfit = 3, StopLoss = 10. But you can, of course, optimize your strategy as you see fit.

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