Forex System Reviews
Forex Scalping | Forex Scalping Strategy
Forex Scalping - What Is It?
Forex scalping is a trading style which looks to take profits on very small price changes, usually soon after a trade has been entered into and becomes profitable. It is a trading strategy that does not look to capture 50+ pip moves, rather it is more about watching the price action and getting in and out of trades for quick 5-15 pips which little by little add up.
This might sound risky however scalping can be quite a low risk strategy if performed correctly. As you are aiming to profit from a lot of small movements, the downside risk should be similarly kept to a very tight range. A strict exit strategy must be implemented because one large loss could eliminate the many small gains that you have worked to obtain. Needless to say, discipline to get out of bad trades and risk management is extremely important and if implemented properly, intra-day forex scalping strategies can be done at low risk.
Click here to learn about a low risk automated scalping strategy which turned $250 into over $1,000,000 in 1 year, never risking more than 2.5% of Account Equity
Forex Scalping - The Problems
There is a problem with scalping however as most dealing desk brokers are aware of this practice and don’t look too kindly upon it. This is because if they allowed scalping of - in and out of a trade in seconds - they would go out of business. The reason for this is because they need time to use a dealing desk so if you are scalping (less than a minute) they dont have the time to deal your money. Basically you are just taking their money.
How Do Brokers Differentiate Scalping From Short Term Trading?
It is a very thin line between scalping and short term trading. Generally if you hold trades for a minute or less, you may have problems with brokers. They could warn you and then if you continue shut down your account. However, if you trade in minutes or more, most likely you will not have problems with dealing desk brokers. Non dealing desk (ECN) brokers allow scalping where you can hold a position for seconds however the minimum to open an account is higher. ($2,000 and above).
An Automated Forex Scalping Strategy
Obviously, it's possible to make money scalping the forex – if not the brokers wouldn’t care so much. However, to be successful, you really must know what you are doing (especially in terms of having a strict risk strategy). You will also need to find a scalping system where you stay in positions long enough not to break the brokers rules while at the same time stay within your own pre-defined risk tolerance parameters.
We recommend an automated forex scalping method developed by the team at Million Dollar Pips because it fits the above criteria as well as the following:
==> The rules of the system are outlined very clearly and programmed into the expert advisor.
==> The scalping technique is risks less that 3% of your Account Equity.
==> Very strict risk and money management rules are pre-defined.
==> Ongoing support is provided.
In essence, the forex scalping strategy developed by Million Dollar Pips Inc., might not appear so at first but it is a defensive trading method based on risk management. The scalping expert advisor takes small profits and risks a very small portion of your overall Equity.
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