What is a forex scalping strategy and how is it different from a standard forex strategy? There is no precise definition of the forex scalping strategy; in our opinion, there cannot be any precise definition at all. From broker’s (dealer’s) point of view, a forex scalping strategy is a strategy with profit level less than 10 pips and time of holding a position less than 1 minute.
The majority of scalping strategies work at definite time – time of quiet market for the given currency pair. For example, between the American and the Asian sessions for the pair eurgbp. Many forex scalping strategies show 100% monthly profit and more on back tests. It should be noted: if you open an account of $1000 with leverage 1:500 at a dealing desk broker and are going to double your capital, there is 99.9% probability you won’t succeed. 0.1% is left for new brokerage companies with inexperienced dealing department. Broker scans its clients and finds the ones, who enter the market on short periods of time, opens positions 10-20% higher than deposit and takes profit of 10 pips and less. What will the broker do next? He will increase your spread and execution time, or even throw in a non-market quite to activate your stop loss.
Komentarų nėra:
Rašyti komentarą