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Monday, February 26, 2024

Forex Trading Guide 2021: Simple scalping strategy

The peculiarity of scalping is that a large number of transactions are executed within a day. At the same time, trading takes place on short time periods. As a rule, these are one to five minute charts. Of course, the profit must be greater than the spread. The main thing in scalping is not the amount of profit, but that it should be at all, at least some, large profit is gained only due to a significant number of transactions.

According to the strategy we are considering, the total number of transactions per day can exceed a thousand. It is quite obvious that according to such a strategy it is good to have a significant leverage so that the profit is more or less significant and there is no need to spend a significant amount of funds to purchase lots.

Very often, among experienced traders, you can hear that scalping is an ineffective approach to trading. However, it is not worth listening to them, since the markets are constantly changing and are currently even accelerating, so many who have more than 10 years of experience cannot adequately assess the current situation in modern markets, since they are used to other conditions.

In general, scalping has a number of quite significant advantages. They are as follows:

1. You can make a profit on a daily basis, if there are no out of the ordinary failures, which in the markets of course are always absolute probable for every trader, even if it is a professional.

2. There is no need to go into all the complexities of technical and fundamental analysis. That is, in this case, we are focused on practical trade, on honing specific skills, developing experience.

3. You can trade almost at any time, there is no need to wait for major trends, or, conversely, flat to play counter-trend strategies.

To trade this strategy, you only need two indicators Scalper_MA and Channel. The first one must be set for a one-minute chart, and the second one for a thirty-minute one. Moments of deals will be shown with arrows, but it is worth keeping track of those moments when both indicators show identical signals and only in this case open positions.

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