Forex Scalping means opening and closing many trading positions in a daily basis by targeting profits of a few pips (5-10 pips)

Introduction to Forex Scalping Trading Strategies

Forex Scalping means opening and closing many trading positions on a daily basis by targeting profits of a few pips (5-10 pips). These positions remain open usually for 1-2 minutes. Scalpers trade the 1-minute and 5-minute charts and usually prefer to trade exclusively two Forex Pairs (EURUSD and GBPUSD). The selection of one of these two pairs is crucial as these two pairs offer the narrowest spreads in the market (along with USDJPY). Scalping must be limited only in low-cost trading opportunities.

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Characteristics of a Forex Scalping Strategy

What characterizes all the following Forex scalping strategies is the great number of average trades per day but also the unorthodox Take Profit / Loss (P/L) Ratio. The Low P/L ratio means that the potential loss of each trade exceeds the potential profit. You can get 30-40 average trades and the P/L ratio is by rule less than 1. In order to prove profitable as a Scalper, you should enjoy a winning ratio of more than 65%. That means that out of 100 trades 65 must prove profitable while 35 can be unprofitable. This is a difficult task and therefore scalping is not suitable for all traders.

■ Daily Trades: 20 - 40

■ Profit/Loss Ratio: 0.5 - 0.7

■ Leverage: 1:100 – 1:200

■ Spreads: very important (max 1.5 pip)

■ Slippage: very important

■ Overnight Charges: No

■ Upcoming News: usually irrelevant (Scalpers avoid to trade 30 minutes before and after key news releases)

Forex scalping strategies can be manual or automated strategies. The automated Trading Strategies are applied by automated trading systems called Expert Advisors or Forex Robots.

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Alternatively, you may scalp Forex by using manual commercial systems  Info about the EA Builder for MT4/MT5

These are some trading strategies for Forex scalpers.


Scalping Strategies

TRADING STRATEGIES

ASSET AND TIMEFRAME

INDICATORS AND SETUP

TAKE PROFIT AND STOP-LOSS

MORE INFO

HIT & RUN STRATEGY

■ M1 timeframe

■ Forex Currencies

 

■ 30 daily trades on average

Parabolic SAR (default) settings:

  1. Acceleration 2%
  2. Maximum Step 20%

Simple moving average (SMA):

50 periods

■ Take Profit:

8-10 pips

■ Stop-Loss:

12-15 pips

■ Profit/Loss Ratio: 0.65

Hit & Run Forex Strategy

BOLLINGER-RSI SCALPING STRATEGY

■ M1 time frame

■ Forex Currencies

 

■ 8-10 daily trades

Bollinger Bands

(i) 12 Periods

(ii) Deviations 2

(iii) Shift 0

RSI

The standard settings (14,9)

■ Take Profit:

5-7 pips

■ Stop-Loss:

10 pips

■ Profit/Loss Ratio: 0.5 / 0.7

Bollinger-RSI Scalping Strategy

THE STOCHASTIC SCALPER STRATEGY

■ M5 time frame

■ Forex Currencies

■ Volatile Commodities

■ Volatile Stocks and Indices

■ 10-15 daily trades

Stochastic Oscillator

Settings at 10,3,3

Simple moving average (SMA)

200 periods

■ Take Profit:

20-30 pips

■ Stop-Loss:

20-30 pips

■ Profit/Loss Ratio: 1

Stochastic Scalper Trading Strategy

 

 

FIND ALSO: ► EA BUILDER TESTER | ► GET STARTED WITH FOREX | ► TRADE SYSTEMS

STRATEGIES: ► DAY-TRADE | ► SWING-TRADE | ► SCALPING STRATEGY | ► BINARY STRATEGIES

FOREX RATINGS: ► DIRECTORY | ► TRADE SPREADS | ► FOREX REBATES | ► FOREX SCALPING | ► SWAP RATES | ► FUNDS SAFETY

 

Forex Scalping Trading Strategies

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