BEST SCALPING EA in 2019
The Best Scalping EA is hard to find. Basically it is a rare product. Many traders seek fortune with scalping and end up with losses, since scalping is maybe the most difficult trading strategy there is. This article will help you define what scalping is and why it makes sense to automate this type of trading.
If you’re interested in a particular topic, feel free to jump ahead::
Definition of Scalp trading
Scalping or scalp trading is a trading methodology where a forex trader chooses to take small profits as quickly as possible during trading sessions. This trading philosophy is based on the idea that taking small profits repeatedly limits risk and creates an advantage for the trader.
The following factors are eminent for increasing profitability if you choose to use a scalping strategy.
- Low transaction costs: make sure your commissions and spread are at the lowest levels to make a high volume trading style its purpose.
- Automated entries and exits: Since markets can move rapidly, it’s highly recommended to use an automated software progam (expert advisor) to trigger entries and exits. This will decrease the manual errors drastically and allows you to trade in multiple markets. Also be aware that slippage can play a major role in the overall profitability whilst forex scalping.
- High liquidity: High liquid markets are always preferred to be able to quickly enter or exit your position. The more buyers and sellers, the better your fill price will be.
pros and cons of forex scalp trading
- Limited market exposure
- Low swap cost
- Scalping works in volatile and slow markets
- Market direction is not needed
- Scalping requires a lot of discipline
- High slippage kills profits
- Time consuming – manual trading
top 3 SCALPING EA’s in 2019
Finding the best scalping EA is not easy. It uses the Forex scalping method which traders use to makes quick and small profits by opening and closing new positions within minutes. A scalped trade can remain open for three to five minutes, with the majority of such trades staying open for as little as one minute. Scalping is a popular trading method primarily because the inherent risk of Forex is minimized when scalping. Since trades are only open for a minimal amount of time, the danger in a fluctuating market is much lower than in traditional trading methods due to a lower level of market exposure.
While day traders are focused on concepts like trends and ranges, a scalping strategy focuses only on the bid-ask spread. The volatility of the Forex market, therefore, affects scalpers less than a trend follower or day trader.
Is there a profitable scalping strategy for any trader?
You should definitely have a look at some or our published scalping Eas.
Scalping is most definitely not a suitable trading method for the majority of Forex traders. The profits made from scalping are understandably much lower, and the scalper depends on many small profits as opposed to making it big with one specific position. The scalping technique lowers your risk as a trader, and on the flip side, lowers your potential for great profit. When all of a scalper’s small profits are combined, is where they make their money.
Taking human nature and accepted trading psychology into account, the scalper has to be a patient and diligent individual who is willing to forego the desire for instant gratification and wait patiently while their trading account grows. An excited and impulsive person will achieve nothing by scalping, in fact, their blood pressure and frustration are sure to increase.
Here an example of a very simple scalping strategy using the 200 SMA combined with the Stochastic Oscillator
autOmated or semi automated scalping?
Another characteristic that is necessary for successful scalping is a high level of concentration. While some day traders might open a position, go out to eat, then come back and close the position based on the latest market developments, the scalper must be concentrated on their open positions at all times, and have their finger on the trigger, in preparation for their next move. It requires a serious attention span as well as the ability to stay glued to one screen for an extended period of time.
If you are not a full-time trader and do your trading on the side, you must realize that scalping is a time-consuming technique that might not be suitable for your schedule. There is always the automatic trader’s option. A trader that feels that a scalping ea is the right method for them can also consider semi-automatic scalping ea like the Hybrid PA.
With such a tool, your scalping would not require you to stay glued to your screen full time, but would still require a high level of attention.
using A SCALPING EA IN TRENDING MARKETS
Many traders favor scalping ea’s in strongly trending markets. This approach is defended on the basis of the notion that scalpers thrive in volatility, and that trends cause a great deal of volatility creating many trading opportunities. But is this idea justified on the basis of facts and analysis?
Let’s first remember that using a scalping trading strategy, one misplaced, carelessly created trade can wipe out the gains of tens of successful trades in a short time. A scalper needs consistency above everything else. Discipline in trade sizes, take profit, and stop-loss orders, and a degree of skepticism towards arising opportunities are important components of a successful trading strategy.
Volatile or calm markets?
Let’s ask ourselves, then, which kind of markets offer the best conditions for the implementations of these principles? Would scalpers thrive in strongly trending and volatile markets, or quiet, calm markets where activity is subdued and volatility is low? Naturally, the best conditions will be found in the latter. Calmer markets allow us to exploit small fluctuations over a long time with little risk and good profits. Trending markets move rapidly, with widening and contracting spreads, where exiting a position before it reaches its full potential can be dangerous, and maintaining a calm and composed attitude is an additional problem.
Forex trading, in general, requires consistency on the part of the trader. This is magnified when it comes to scalpers. Trading unpredictable size positions will inevitably lead to a closing of your trading account. The scalping ea method, after all, is based on the principle that your small profits will overpower your losses. This will not necessarily work if you open large trades, and lose.
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