Forex for a trader
Forex scalping strategy

Forex scalping strategyForex Scalping – Extensive Guide on How to Scalp Forex. Forex scalping is a popular method involving the quick opening and liquidation of positions. The term “quick” is imprecise, but it is generally meant to define a timeframe of about 3-5 minutes at most, while most scalpers will maintain their positions for as little as one minute. The popularity of scalping is born of its perceived safety as a trading strategy. Many traders argue that since scalpers maintain their positions for a brief time period in comparison to regular traders, market exposure of a scalper is much shorter than that of a trend follower, or even a day trader, and consequently, the risk of large losses resulting from strong market moves is smaller. Indeed, it is possible to claim that the typical scalper cares only about the bid-ask spread, while concepts like trend, or range are not very significant to him. Although scalpers need ignore these market phenomena, they are under no obligation to trade them, because they concern themselves only with the brief periods of volatility created by them. Is Forex Scalping for you? Forex scalping is not a suitable strategy for every type of trader . The returns generated in each position opened by the scalper is usually small; but great profits are made as gains from each closed small position are combined. Scalpers do not like to take large risks, which means that they are willing to forgo great profit opportunities in return for the safety of small, but frequent gains. Consequently, the scalper needs to be a patient, diligent individual who is willing to wait as the fruits of his labors translate to great profits over time. An impulsive, excited character who seeks instant gratification and aims to “make it big” with each consecutive trade is unlikely to achieve anything but frustration while using this strategy. Attention is essential for the forex scalper. Scalping also demands a lot more attention from the trader in comparison to other styles such as swing-trading, or trend following. A typical scalper will open and close tens, and in some cases, more than a hundred positions in an ordinary trading day, and since none of the positions can be allowed to suffer great losses (so that we can protect the bottom line), the scalper cannot afford to be careful about some, and negligent about some of his positions.

It may appear to be a formidable task at first sight, but scalping can be an involving, even fun trading style once the trader is comfortable with his practices and habits. Still, it is clear that attentiveness and strong concentration skills are necessary for the successful forex scalper. One does not need to be born equipped with such talents, but practice and commitment to achieve them are indispensable if a trader has any serious intention of becoming a real scalper. Automated trading systems. Scalping can be demanding, and time-consuming for those who are not full-time traders. Many of us pursue trading merely as an additional income source, and would not like to dedicate five six hours every day to the practice. In order to deal with this problem, automated trading systems have been developed, and they are being sold with rather incredible claims all over the web. We do not advise our readers to waste their time trying to make such strategies work for them; at best you will lose some money while having some lessons about not trusting anyone’s word so easily. However, if you design your own automated systems for trading (with some guidance from seasoned experts and self-education through practice) it may be that you shorten the time which must be dedicated to trading while still being able to use scalping techniques. And an automated forex scalping technique does not need to be fully automatic; you may hand over the routine and systematic tasks such as stop-loss and take-profit orders to the automated system, while assuming the analytical side of the task yourself. This approach, to be sure, is not for everyone, but it is certainly a worthy option. Some words on trade sizes and forex scalping. Finally, scalpers should always keep the importance of consistency in trade sizes while using their favored method.

Using erratic trade sizes while scalping is the safest way to ensure that you will have a wiped-out forex account in no time, unless you stop practicing scalping before the inevitable end. Scalping is based on the principle that profitable trades will cover the losses of failing ones in due time, but if you pick position sizes randomly, the rules of probability dictate that sooner or later an oversized, leveraged loss will crash all the hard work of a whole day, if not longer. Thus, the scalper must make sure that he pursues a predefined strategy with attention, patience and consistent trade sizes. This is just the beginning, of course, but without a good beginning we would diminish our odds of success, or at least reduce our profit potential. Now let’s take a look at the contents of this article where forex scalping is discussed with all its details, advantages and disadvantages. Our suggestion is that you peruse all of this article and absorb all the information that can benefit you. But if you think that you’re already familiar with some of the material, to shorten your route, we present the table of contents of this article. 1. How scalpers make money: Here we will take a look at the logic behind scalping, and we’ll discuss the best conditions and necessary adjustments which must be made by a scalper for profitable trading. 2. Choosing the right broker for scalping: Not every broker is accommodative to scalping. Sometimes this is the stated policy of the firm, at other times the broker creates the conditions which make successful scalping impossible. It is important that the novice scalper know what to look for in the broker before opening his account, and here we’ll try to enlighten you on these important points. 3. Best currencies for Scalping: There are currency pairs where scalping is easy and lucrative, and there are others where we advise strongly against the use of this strategy. In this part we’ll discuss this important subject in detail and give you usable hints for your trades. 4. Best times for Scalping: There is an ongoing debate about the best times for successful scalping in the forex market.

We’ll present the various opinions, and then offer our own conclusion. 5. Strategies in Scalping: Strategies in scalping need not differ substantially from other short-term methods. On the other hand, there are particular price patterns and configurations where scalping is more profitable. We’ll examine and study them in depth in this section. a. Range Scalping: Some traders consider ranging markets better suited for scalping strategies. Here we’ll examine why, and how to scalp under such conditions. b. Breakout Scalping: We’ll examine news breakouts, and technical breakouts separately and discuss suitable scalping strategies for both. c. Trend Scalping: Here we’ll take a general look at forex scalping in trending markets. 6. Trend Following while Scalping: Trends are volatile, and many scalpers choose to trade them like a trend follower, while minimizing the trade lifetime in order to control market risk. In this part we’ll examine the usage of Fibonacci extension levels for scalping trends. 7. Disadvantages and Criticism of Scalping: Scalping is not for everyone, and even seasoned scalpers and those committed to the style would do well to keep in mind some of the dangers and disadvantages involved in using the style blindly. 8. Conclusions on Scalping: In this final section we’ll combine the lessons and discussions of the previous chapters, and reach at conclusions about who should use the forex scalping trading style, and the best conditions under which it can be utilized. Top Technical Indicators for a Scalping Trading Strategy. Scalpers seek to profit from small market movements, taking advantage of a ticker tape that never stands still during the market day. For years, this fast-fingered crowd relied on Level II bidask screens to locate buy and sell signals, reading supply and demand imbalances away from the National Best Bid and Offer (NBBO), or the bid and ask price the average person sees.

They would buy when demand set up on the bid side or sell when supply set up on the ask side, booking a profit or loss minutes later as soon as balanced conditions returned to the spread. That methodology works less reliably in our modern electronic markets for three reasons. First, the order book emptied out permanently after the 2010 flash crash because deep standing orders were targeted for destruction on that chaotic day, forcing fund managers to hold them off-market or execute them in secondary venues. Second, high-frequency trading (HFT) now dominates intraday transactions, generating wildly fluctuating data that undermines market depth interpretation. Finally, the majority of trades now take place away from the exchanges in dark pools that don't report in real time. Scalpers can meet the challenge of this era with three technical indicators custom-tuned for short-term opportunities. The signals used by these real-time tools are similar to those used for longer-term market strategies, but they are instead applied to two-minute charts. They work best when strongly trending or strongly range-bound action controls the intraday tape; they don't work so well during periods of conflict or confusion. You'll know those conditions are in place when you're getting whipsawed into losses at a greater pace than is usually present on your typical profit and loss curve. Read on for more about such signals. (For related reading, see: Introduction to Trading: Scalpers, Understanding the Ticker Tape and The Basics of the Bid-Ask Spread. ) Moving Average Ribbon Entry Strategy. Place a 5-8-13 simple moving average (SMA) combination on the two-minute chart to identify strong trends that can be bought or sold short on counterswings, as well as to get a warning of impending trend changes that are inevitable in a typical market day. This scalp trading strategy is easy to master. The 5-8-13 ribbon will align, pointing higher or lower, during strong trends that keep prices glued to the 5 or 8-bar SMA. Penetrations into the 13-bar SMA signal waning momentum that favors a range or reversal.

The ribbon flattens out during these range swings, and price may crisscross the ribbon frequently. The scalper then watches for realignment, with ribbons turning higher or lower and spreading out, showing more space between each line. This tiny pattern triggers the buy or sell short signal. (For more, see: Market Reversals and How to Spot Them .) Relative StrengthWeakness Exit Strategy. How does the scalper know when to take profits or cut losses? 5-3-3 Stochastics and a 13-bar, 3-standard deviation (SD) Bollinger Band used in combination with ribbon signals on two-minute charts work well in actively traded markets, like index funds, Dow components and for other widely held issues like Apple Inc. (AAPL). The best ribbon trades set up when Stochastics turns higher from the oversold level or lower from the overbought level. Likewise, an immediate exit is required when the indicator crosses and rolls against your position after a profitable thrust. (For more insights, see: What Are the Best Indicators to Identify Overbought and Oversold Stocks? ) Time that exit more precisely by watching band interaction with price. Take profit into band penetrations because they predict the trend will slow or reverse; scalping strategies can't afford to stick around through retracements of any sort. Also, take a timely exit if a price thrust fails to reach the band but Stochastics rolls over, which tells you to get out. Once you're comfortable with the workflow and interaction between technical elements, feel free to adjust standard deviation higher to 4SD or lower to 2SD to account for daily changes in volatility. Better yet, superimpose the additional bands over your current chart so that you get a broader variety of signals.

(To learn more about other band indicators that can guide your trades, see: Capture Profits Using Bands and Channels .) Multiple Chart Scalping. Finally, pull up a 15-minute chart with no indicators to keep track of background conditions that may affect your intraday performance. Add three lines: one for the opening print and two for the high and low of the trading range that set up in the first 45 to 90 minutes of the session. Watch for price action at those levels because they will also set up larger-scale two-minute buy or sell signals. In fact, you'll find that your greatest profits during the trading day come when scalps align with support and resistance levels on the 15-minute, 60-minute or daily chart. (For more, see: Trading With Support and Resistance .) Scalpers can no longer trust real-time market depth analysis to get the buy and sell signals they need to book multiple small profits in a typical trading day. Fortunately, they can adapt to the modern electronic environment and use the technical indicators reviewed above that are custom-tuned to very small time frames. (For more, see: Scalping as a Novice Trader. ) A Simple Scalping Strategy. Your Forecast Is Headed to Your Inbox. But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk. Your demo is preloaded with ?10,000 virtual funds , which you can use to trade over 10,000 live global markets. We'll email you login details shortly.

You are subscribed to Walker England. You can manage you subscriptions by following the link in the footer of each email you will receive. An error occurred submitting your form. Please try again later. Article Summary: Creating a Forex trading strategy does not have to be a difficult process. Today we will review a simple scalping strategy using the Stochastics indicator. Traders who are looking to peruse Scalping opportunities in the Forex market will benefit from having a completed trading strategy at their disposal. The number of variables that can be added to a strategy are limitless, and it is often good to have a simple strategy on standby. Today we are going to review a simple stochastic strategy that can be used for scalping trending Forex currency pairs. So let’s get started! The first step to trading any successful trend based strategy is to locate the trend! The 200 period MVA ( Simple Moving Average ) is one of the markets most used tools for this purpose.

Traders can add this indicator to any graph and identify whether price is above or below the average. If price is above the MVA traders can assume the trend is up and look to buy. Below we can see a 5minute AUDJPY chart accompanied with the 200 periodscal MVA. Given the information above, traders should look to buy the AUDJPY as long as it remains trending higher. If the trend continues, expectations are that price will remain above the 200 period MVA and new highs will be created. Learn Forex – AUDJPY with 200 MVA. Once a trend is spotted using the 200 period MVA, and a trading bias has been established, traders will begin looking for a technical trigger to enter into the market. Oscillators are common choices, and SSD (slow stochastics) can be added to your graph for this exact purpose. Below we can see the AUDJPY 5 minute graph, this time with SSD added. Since we have identified the AUDJPY in an uptrend traders will look to buy when SSD signals momentum returning back in the direction of the trend. This occurs when the Green %k line crossover the Red %D line below an oversold level of 20. Below you will find several examples of past SSD crossovers from today’s trading on the AUDJPY. Note how only buy positions are to be taken on bullish crossovers as the uptrend continues. At no point should traders consider selling as the uptrend continues. Learn Forex – AUDJPY & SSD. As with any active market strategy, scalping Forex trends carries risk.

It is important to know upfront that trends eventually do end. Scalpers can use a swing low or even the 200 period MVA as places to set stop orders . In the event that price breaks and begins creating lower lows, traders will wish to exit any existing long positions and look for other opportunities. Trading strategies are influenced by events in the global markets. Check out our Introduction to Forex News Trading guide which provides insights on trading based on the events influencing markets. DailyFX provides forex news and technical analysis on the trends that influence the global currency markets. Meta Scalper – A Simple Low Risk Scalping Strategy. The method can be used in any markets but it is best (and has lowest risk) when the market is range bound. It is a low yielding strategy. That means the profits are not huge but they are consistent when the system is correctly applied. I have used this method over several months on both one-minute (M1) and five-minute (M5) time frames. However, it can be adapted to work at higher timescales if you choose. Unlike most other scalpers, this method enters the market on triggers from an indicator as well as price behavior at each bar (candle). A key element of this strategy is that it spreads risk across a number of trades to create a scalp sequence . This averaging out is essential in restricting drawdowns and creating incremental profits. Unlike other scalping systems, trades are allowed to drawdown.

Many scalping system abandon a trade as soon as it enters a loss. However because the exposure is spread among multiple trades the impact of drawdown on the account’s balance is limited. Because of the need to allow trades to enter a loss, it is not advisable to use this method with aggressive leverage. With this strategy, I do not use more than one standard lot per $10k of account balance. That is, there is never more than one lot of exposure at any time. Typically, the exposure is spread over 100 trades. However, with the entry signal I use there are rarely more than 10 trades open at once. It averages around 5 trades per day and the average total profit is 25.9 pips per day. The table below summarizes the setup: Swing Trading Strategies that Work (updated) Jesse Livermore, one of the greatest traders who ever lived once said that the big money is made in the big swings of the market. In this regard, Livermore successfully applied swing trading strategies that work and which helped him achieve amazing financial results. The simple swing trading strategy is a market strategy where the trades are held more than a single day, usually between 3 days and 3 weeks. Here is how to identify the right swing to boost your profit. Our team at Trading Strategy Guides has already written about other swing trading strategies that work like the Harmonic Pattern Trading Strategy - Easy Step By Step Guide or the MACD Trend Following Strategy - Simple to learn Trading Strategy which is one of the most popular strategies ever posted at Trading Strategy Guides . This time around, we’re going to outline a simple swing trading strategy that is similar to what Jesse Livermore used to trade.

Let’s also remember that this simple swing trading strategy that Livermore used helped forecast the biggest stock market crash in history, the Wall Street crash of 1929, also known as the Black Tuesday. Here is another strategy called weekly trading strategy that will keep you sane. By the way, after the 1929 stock market crash Livermore reportedly made $100 million, which adjusted for inflation is estimated to be about $1.39 billion today. Quite a lot of money, wouldn’t you say so? Get started With Our Simple Swing Trading Strategy. If you were to take a swing trading course right now I believe that the current market conditions would allow any trader who is using the proper trading technique to deliver solid results. There are a few things that I think we should consider before getting started. One of those is to determine if we should trade a counter trend system or a trending stock setup. Either one can work but it is up to you to determine which one you want to use. I recommend using paper trading on a stock swing the next time you see one develop. This article is going to go in depth with a key swing trading technique on the daily charts. While this may be considered advanced swing trading this strategy suitable for all investors and is perfect for home study.

We will tell you how to do proper market analysis and also show you when to enter the trade and when to exit the trade by teaching you how to set the right profit target. It is also important before starting to trade any swing trading system that you make sure you have a fully developed trading plan. This will help you prepare to become more successful and join the ranks of professional day traders. It is our goal to give you the trading opportunities as well as help you in every way that we can to be come the best swing traders you can be. You can also learn the way bankers trade in the forex market. Before diving into some of the key rules that make up a swing trading strategy that work, let’s first examine what are the advantages of using a simple swing trading strategy. You can also read about budgeting in forex for a better trading. What are the Advantages of a Simple Swing Trading Strategy. The main advantage of a simple swing trading strategy is that it offers great risk to reward trading opportunities. In other words, you’re going to risk a smaller amount of your account balance for a potentially much bigger profit compared to your risk. The second benefit of using swing trading strategies that work is that it will eliminate a lot of the intraday noise. You’re now going to be trading like the smart money do, which is in the big swing waves. The last benefit of using a simple swing trading strategy is that you’ll not be glued to the screen for the whole day like is the case with any daytrading strategy. A swing trading strategy will work in all markets starting from stocks, commodities, Forex currencies and much more. Before we get started, let’s look at what Swing Trading indicator you need. The First and ONLY indicator you need is the: Bollinger Bands Indicator: Is a technical indicator developed by John Bollinger designed not only to spot overbought and oversold territory in the markets but it also gauges the market volatility.

This swing trading indicator is composed of 3 moving averages: The central moving average, which is a simple moving average. And then on both sides of these simple moving averages are plotted two other moving averages at a distance of 2 standard deviations away from the central moving average. The figure above should give you a good representation of how the Bollinger Bands look like. Most trading platforms come with this indicator in their default list of indicators. If you’re interested to explore more how one can profit from this amazing indicator – Bollinger Bands – look no further than our Bollinger Bands Bounce Trading Strategy. The preferred setting for the swing trading indicator Bollinger Bands indicator are the default settings because it makes our signals more meaningful. We reached this conclusion after testing the strategy based on several inputs. Now, let’s move forward to the most important part of this article, the trading rules of the swing trading strategy that work. Before we go any further, we always recommend writing down the trading rules on a piece of paper. This exercise will step up your learning curve and you’ll become a swing trader expert in no time. Also read our Forex success program. Let’s get started… Swing Trading Strategy that Work. (Trading Rules – Sell Trade) Our simple swing trading strategy is really just comprised of two elements.

The first element of any swing strategy that works is an entry filter. For our entry filter, we’re going to use one of our favorite swing trading indicators aka the Bollinger Bands. The second element is a price action based method. Step #1: Wait for the price to touch the Upper Bollinger Band. The first element we want to see for our simple trading strategy is that we need to see price moving into overbought territory. Any swing trading strategy that work should have this element incorporated. Note* The preferred time frame for this simple swing trading strategy is the 4h time frame, but the strategy can be used on the daily and weekly time frame as well. Step #2: Wait for the price to Break below the Middle Bollinger Bands. After we touched the upper Bollinger Band, we want to see confirmation that we indeed are in overbought territory and the market is about to reverse.

The logical filter, in this case, is to look after a break below the middle Bollinger Band. This break below middle Bollinger Bands is a clear signal in the shift in market sentiment. We at Trading Strategy Guides don’t trade breakouts without disseminating weather or not there are real buyersellers – in our case, sellers – behind the breakout which brings to the next step of our simple swing trading strategy. Step #3: Swing Trading Indicator: The Breakout Candle needs to big a Big Bold Candle that closes near the Low Range of the Candlestick > Sell at the Close of the Breakout Candle. So far our favorite swing trading indicator has correctly predicted this sell-off, but we’re going to use a very simple candlestick based method for our entry trigger. In this regard, we want to see a big bold bearish candle that breaks below the middle Bollinger Band. The second element of this candlestick based method is that we need the breakout candle to close near the low range of the candlestick. This is indicative of strong sellers, which really want to drive this currency pair much lower. Every swing strategy that work needs to have quite simple entry filters. Now, we still need to define where to place our protective stop loss and where to take profits, which brings us to the next step of our simple swing trading strategy. Step #4: With we hide our Protective Stop Loss above the Breakout Candle. The breakout candle has a lot of significance because we’ve used it in our candlestick based entry method. We assumed that this candle shows the presence of real sellers in the market. If the high of this candle were to be broken, it’s clear enough that this is simply a fake breakout as there are no real sellers. It’s nothing complicated about it, right?

If you want to learn more about this breakout technique and how to manage breakout trades, please read our Breakout Trading Strategy Used by Professional Traders article for more insights. The next part of our simple swing trading strategy is the exit strategy which is based on our favorite swing trading indicator. Step #5: Take Profit once we break and close back above the middle Bollinger Bands. In this particular case we’re looking at a short trading example. So, if the price breaks back above the middle Bollinger Banks it’s time to get worried and take our profits as it can signal a reversal. The reason why we get profit here is quite here to understand as we want to book the profits at the early sign the market is ready to roll over. Note** The above was an example of a SELL trade… Use the same rules – but in reverse – for a BUY trade. In the figure below, you can see an actual BUY trade example, using our simple swing trading strategy. Click here for more information. You can notice that this trade is still running as we have yet to break and close below the middle Bollinger Bands. This just proves that the higher the time frame the more powerful our simple swing trading strategy is. Some complex strategies can be too overwhelming and confusing, so using a simple swing trading strategy; it can be all it takes to succeed in this business. Albert Einstein the greatest scientist of all time once said that “everything should be made as simple as possible, but not simpler.

” You can also read how to make money trading. A swing trading strategy that work should be comprised of a swing trading indicator that can help us analyze the trend structure, and secondly a price entry method that looks at the price action which is the ultimate trading indicator. We understand that there are different trading styles and if swing trading is not your thing you can try our Simple Scalping Strategy: The Best Scalping System which attracted a lot of interest from our community. Thank you for reading! Please leave a comment below if you have any questions about this swing trading strategy ! Also, please give this strategy a 5 star if you enjoyed it! ( 14 votes, average: 4.00 out of 5) Please Share this Trading Strategy Below and keep it for your own personal use! Thanks Traders! Best Forex Scalping Strategies - The Definitive Guide. On this page, you’ll find the most powerful forex scalping strategies including the single most powerful forex scalping EA in existence today (trust me, you won’t be disappointed). A lot of guides have been written on forex scalping – from forex scalping technique, to forex scalping systems and even to the best forex scalping indicators that you can use to help you scalp the market – all of them promising you that if you use their strategies, you will do well. Now, I have went through most of the systems and sadly, they’re all way too basic to give you even the slightest chance of surviving in the ferocious forex arena filled with blood thirsty bears and bulls. I would liken it to them giving you a wooden sword and throwing you into the arena – we all can guess what would happen next. 1. What is Forex Scalping? Forex scalping is a short term trading strategy that requires forex traders to trade currency pairs by buying and selling them, typically holding onto each trade for a short period of time looking for small profitable gains.

A proper forex scalping method usually (although not definitely) involves executing a higher number of trades when compared to longer term trading strategies which can hold a position for months. Due to the nature of this short term strategy, a successful scalping strategy would require a high degree of accuracy to ensure profitability, largely because your margin for error is usually really low. Scalping is often associated with trading with high leverage since you need to try to make profits with smaller price movements – however, this is not the case as you’ll discover in your training here that in fact, a lower leverage is better for scalping and trading. 2. Forex Scalping Strategies VS Other Trading Strategies. You’re at a juncture of your forex trading career (yes, we treat forex trading as serious as being a career) that requires you to choose between the many different strategies and systems offered by every single self-proclaimed trading guru out there. This decision is crucial . Pick the wrong strategy and you could be going down a 12 months road to losses. That’s why we wrote an extremely in-depth article on how does forex scalping works so that you can decide with confidence whether forex scalping is the way to go for you. 3. Forex Scalping Systems. The next question is, what makes a good forex scalping system? The difference between a scalping strategy and scalping system is that a strategy simply lays out the rules, you buy here you sell there, however, a system empower you to carry out the strategy. If you do a simple google search, you see a hundred and one different scalping systems claiming they will make you the next Warren Buffet – some give you ‘signals’, some tell you to buy when the EMA crosses and some tell you to look to wait for the stars to align in the sky. 3.1. What makes a good forex scalping system? You see, the problem with all these systems is that they’re not very comprehensive. Sure, some of them might come in the form of an Expert Advisor (EA for those who are familiar with MT4) that helps you buy, sell and close off trades. That is the most basic functions of a system. I previously wrote a very important post on what would make the best features for a scalping system which you should really read.

In a nutshell, the best forex scalping system (and I am holding nothing back here) should at least have these 5 features : Use multiple time-frames to pick out the best trading entries (not just one time frame which is way too weak) Have an in-built take profit, stop loss and breakeven feature If possible, have an automated trading function because that shows that the strategy rules can be coded – meaning it is clear and understandable. Have a function that avoids trading during news releases because you should never scalp during heavy news releases Have a function that avoids trading when the spread gets too high because due to the small profits we scalpers aim for, large spreads put us at a significant disadvantage. You’ll soon realize that most scalping systems and even trading systems do not have more than 1 of those features built in and because of that, fail to help you break into the 1% of forex traders who are truly successful in making a living trading forex. Before you lose all hope in finding a good forex scalping system, you should know that the TFA Sniper we’ve built here at The Forex Army has all those above mentioned features and much more. 3.2. The TFA Sniper. At this stage, you know the few main differences that makes up a good forex scalping system. The key here is to know that a good forex scalping system has both a good offense and good defense . It’s not enough to make a lot of profitable trades, you need a good defense to protect those profitable trades – and this holistic approach is exactly what makes the TFA Sniper one of the best forex scalping systems out there – we take into account not only trading strategy, but also trading psychology, trading methodology and trading accountability to put together one seriously bulletproof system. We have put together an in-depth explanation on all the features of the TFA Sniper which should help you fully understand the strategies we will be discussing next and more importantly, to learn how to control this extremely deadly weapon to be used against the ferocious bears and bulls of the forex market. 4. The Best Forex Scalping Strategies.

So up to this point, we have established why forex scalping is a more profitable strategy compared to other trading strategies, along with that, the list of requirements that makes a good forex scalping system. We now take a look at the different forex scalping strategies we have engineered to be used with our world class forex scalping system : The TFA Sniper. There is one very important TFA Sniper confirmation pattern formation that everyone should keep a watch out for and which affects the risk to reward ratio of just about every single strategy listed below, it’s called the Flag Formation (FF), it basically gives you, at a glance, a quick understanding of where the direction of the market is heading and greatly increases your profitability of the scalping trades that you take. You should read about it here before proceeding to the list of strategies below : FF Scalping Setup. 4.1. Easy Zone (EZ) Scalping Strategy. The first strategy is the EZ Scalping strategy, this is our bread and butter trade and usually has one of the highest probability of success. This is largely because the entry requirements are more strict and you don’t get as many trades compared to the other trading strategies. Nonetheless, it remains one of our most successful scalping strategy. We categorize this as a basic forex scalping strategy because it’s easier to execute and simpler to understand. You can read about it here : EZ Scalping Strategy. 4.2. Danger Zone (DZ) Scalping Strategy.

The second strategy we use is the DZ Scalping Strategy. This strategy is almost the same as the EZ Scalping Strategy with the main difference being the strictness which we employ when entering into a trade. By the very nature of its entry requirements being less strict, the DZ Scalping Strategy is a riskier strategy and usually occurs much more often than its EZ counterpart. Some users have used this strategy to tremendous success, although it is usually done when there are additional confirmation signals like the Flag Formation or if there is an extremely strong levels. We have categorized this as an intermediate forex scalping strategy because while it can be traded almost entirely by itself, it works best when we look out for additional confirmation signals. You can read about it here : DZ Scalping Strategy. 4.3. Tim Trades (TT) Scalping Strategy. The third strategy that we use was developed by our very own TFA Hedge Fund trader Timothy (Veteran Tim on this site), he has used it to great success on his live account and has been generating consistent returns over the last 8 months with this method. This strategy is a little bit more long term than the standard scalping strategy that we adopt here, usually holding trades for a couple of hours to even a day. It targets a healthy risk to reward return of 1 : 3, meaning that all it takes is 1 win to cover 3 losses. We categorize this as an intermediate forex scalping strategy because it requires some eyeballing to find the flag formations and filtering to pick the appropriate stop loss levels. You can read about it here : TT Scalping Strategy. 4.4. Flag Formation (FF) Scalping Strategy.

This fourth trading strategy is based on the earlier mentioned Flag Formation Setup and is one of my personal favorites because of the extremely high probability of such trades turning into profitable winners. The strategy uses a risk to reward ratio of 1 : 1 most of the time, at most stretching to 1 : 1.5 if market conditions are really good. In this strategy, it is very clear to see just how strong the market is in your direction and the goal is to ride the flag whenever price retraces a bit into it and is close to the DZ area. Such a strategy seems to be best used with these majors : AUDUSD, EURUSD, USDJPY, USDCHF, NZDUSD and can occur many many times throughout the day as long as there is a flag formation. We categorize this as an basic forex scalping strategy because it is relatively easy – just identifying the flag formation and picking the point of entry. You can read about it here : FF Scalping Strategy. 4.5. Jimmy Trades (JT) Scalping Strategy. This fifth trading strategy is an extremely powerful trading strategy (think 50%+ returns a month) and is meant for traders who do not have time to watch the chart very often. It works on the one hour time frame so you don’t need to monitor your charts as closely and the holding period of trades usually last 1 to 6 hours.

The strategy makes use of Fibonacci pivot points, TFA Advanced Fibonacci Waves, candlesticks reversal patterns and RSI trading strategies and targets reversal trades. The typical risk : reward is 1 : 5+ so bagging one good trade can last you for a long while. This is a fantastic strategy to trade while you’re scalping smaller positions with the other strategies we have here. It works really well in predicting when a strong flag formation might end too. We categorize this as an advanced forex scalping strategy because it requires chart reading skills and a lot more discretion than the other strategies. You can read about it here : JT Scalping Strategy. 4.6. Pontus Trading (PT) Scalping Strategy. The sixth strategy we have developed is made famous by our very own 2nd Lieutenant Pontus who have doubled his live account in 1 month with verifiable trade statements! It uses a modified version of the normal breakout pullback strategy utilizing the full power of the momentum indicators of the TFA Sniper and the predictive nature of the advanced fibonacci waves to pick really accurate pullback trades. We categorize this as an advanced forex scalping strategy because it requires chart reading along with monitoring the TFA Sniper and advanced fibonacci waves. It really isn’t that hard, just that it isn’t as easy as the DZ and EZ trades. You can read about it here : PT Scalping Strategy. A good reading would also be understanding how support and resistance levels are found with out new TFA Fractal Support and Resistance Radar. To date we believe it’s just about the best support and resistance indicator for MT4 . It’s also very useful to combine this knowledge with proper use of the RSI indicator . 5. Forex Trading Psychology.

An often neglected, but crucially important requirement of becoming a truly successful forex trader is training your mind to think and behave like a professional trader. This is not just some bogus nonsense, in fact, I would classify this as even more important than any trading strategy mentioned above. The interesting thing is that every part of our human body is designed to be bad at trading and investing, especially scalping. We tend to hold on to our losses for days even and let our drawdown go to really unhealthy levels, but the moment that losing trade gets to breakeven, we let it go and go “phew, that was a close one”. It’s because of this fear of loss mentality that has been built into us that has caused many of us to fail even with the most successful of trading strategies given to us. The TFA Sniper does a lot to take out as much emotional and psychological barriers that might prevent us to becoming a successful forex trader and scalper, as much as possible, it automates the stop loss, take profits, breakevens, prevents you from trading during news and high spread, prevents you from revenge trading and much more. However, because of the flexibility of the system that allows you to take some manual trades, you’ll always have opportunities to trade more than what is optimum and recommended for you. Because of this, we have put together a well-written straight-to-the-point article on the most important points on forex trading psychology . It is also heavily recommended to take a look at this amazing (and free) e-book and go through it – this is one of the strongest pieces of advice I have for you. Once you read through it, you’ll understand why through the simple edge that the TFA Sniper has, when multiplied over the law of large numbers (like a casino), it is almost a guarantee that we will turn out profitable. 6. Best Brokers for Scalping Forex. When it comes to scalping, not every forex broker is a good choice. This is because scalping requires a broker to have really low and stable spreads especially during times of high volatility. I’ve worked in one of the largest forex brokerages before and know exactly how much of the operations work at the backend and what most brokers are concerned about getting. There are essentially 3 kinds of forex brokers : Forex Brokers with no commission but higher spreads Forex Brokers with normal commission but lower spreads (usually ECNDMASTP) Forex Brokers with normal commission and fixed spreads. Each of these forex brokers have their own benefits and are catered to different kinds of trading systems. For example, as a scalper, it is important that we always have the lowest spreads (since we’re only targeting a few pips of profit at times), fastest execution (no re-quotes because we have to seize the trading opportunity when it comes in such a fast paced environment) and deep liquidity. Currently, we’ve partnered with ATC Brokers who is one of the very few 4.7 Stars Forex Peace Army rated brokers that has been around for 10+ years and maintain an honest good business (unlike the many bucket shop brokers who closed during the swiss franc crisis that wiped out many brokers). On top of that, they have the tightest spreads around, true ECNSTPDMA, lowest commissions and best customer service + backend client logins I’ve ever seen which is why we’ve chosen to partner exclusively with them.

7. Best Time To Scalp Forex. There is always this debate on the best time to scalp forex and I will finally settle this debate once and for all. The best time to scalp forex is when the market presents you with the opportunity by meeting every single one of your trade entry criteria . Quite frankly, this can happen at just about any time of the day. For the market to meet every single one of your trade entry criteria, ideally, it requires some movement before it can reach that criteria, so in order to get that movement, it requires volatility . Volatility is most present during the New York – London overlap (this means the overlap when the London market is closing and New York market is opening). It is also fairly present during the London – Tokyo overlap and Sydney – Tokyo overlap. So, if you wish to simply allocate a couple of hours a day to trading everyday, I would recommend : New York – London overlap at the first choice 8:00 am – 12:00 pm EST (EDT) London – Tokyo overlap 3:00 am – 4:00 am EST (EDT) Sydney – Tokyo overlap as the third choice (usually more movement in AUD, NZD and JPY pairs) 7:00 pm – 2:00 am EST (EDT) The good thing, however, is that whilst you may be sleeping, due to the high demand of all our soldiers here, we have created an auto trading feature of the TFA Sniper that helps you enter into good trades while you’re sleeping. How cool is that? 8. Take the TFA Bootcamp Exam. The TFA Bootcamp Exam is not compulsory, but it’s highly recommended as I’ve made it as tough as possible such that if you can pass this exam, you can be certain you are on track to being a successful forex scalper. It tests you the basic fundamentals, to proper trading psychology and lastly to the different trading strategies of The Forex Army. Soldiers who pass the TFA Bootcamp Exam will be given an extra 10 days to their demo accounts. 9. Practice, Practice, Practice. The next thing to do is to practice these forex scalping strategies.

Personally, I prefer to practice with a live account with micro lots so that I get the best of both worlds : you get the psychological and emotional intensity of trading a live account and at the same time, you don’t get punished with huge losses since you’re trading small. When you practice with a demo account, you only get half the intensity. Nonetheless, we allow all users to begin with at least a demo account when starting out with the TFA Sniper. Simply get a demo account with ATC Brokers and fill in the demo request form below : US Search Mobile Web. Welcome to the Yahoo Search forum! We’d love to hear your ideas on how to improve Yahoo Search . The Yahoo product feedback forum now requires a valid Yahoo ID and password to participate. You are now required to sign-in using your Yahoo email account in order to provide us with feedback and to submit votes and comments to existing ideas. If you do not have a Yahoo ID or the password to your Yahoo ID, please sign-up for a new account. If you have a valid Yahoo ID and password, follow these steps if you would like to remove your posts, comments, votes, andor profile from the Yahoo product feedback forum. Forex Scalping Systems. Forex scalping has gained high popularity nowadays. We welcome you to explore our free and steady growing collection of Forex scalping strategies and ideas!

Yes, true scalping involves risks as well as any other type of trading. But if done correctly Forex scalping provides an additional degree of risk management as a result of holding trading positions for a very short period of time as well as constant monitoring of the price and collecting quick profits as they appear. Please, do not forget to read our disclaimer policy. In short, Forex scalping systems you find below if used will assume trader's own risk and full responsibility. Scalping Forex is fun. Learn it and trade profitably! Best of luck in scalping the Forex! Edward Revy and my best Forex strategies Team. Beginner's Guide to Forex 1 minute scalping strategy. Even if you are new in Forex trading you must've come across the word 'scalping'.

Here is the complete guide to Forex 1 minute scalping strategy for beginner traders. 8 August, AtoZForex – The Best Forex strategy and indicators are somewhat difficult to find for beginner traders but if you are planning to trade in real time basis then do not waffle to use the Forex 1 minute scalping strategy. In this article, I will explain to you how to use the scalping strategy and the pros and cons of using it. A Guide to the Forex 1-Minute Scalping Strategy. Firstly, What is scalping? In simple words, scalping is the method of trading currency pair based on real time technical analysis. The main objective of scalping is to book a profit through buying or selling currencies by holding a position for a very short period of time and squaring-off for small profits. This trading strategy is considered profitable for the newbie Forex traders. But you should be aware of the strategy you are using and must focus on the position till the trade is closed. As it is one of the basic and profitable trading strategies the traders can place more than 100 trades a day. Also, it is important to choose a broker with smaller spread and lower brokerage charges.

Also, it is important to have the proper understanding of the market. By trying different approaches and strategies, you can see your strategies from a new visual aspect and gain valuable insights. My Chart Setup. Indicators: 12 exponential moving average, 26 exponential moving average, 55 simple moving average. Time frame(s): 1 min charts. Trading sessions: London session, US session. Currency pairs: Low spread (EURUSD, USDJPY) Forex 1-Minute Scalping Strategy Buy (Long) Entry Point. 12 EMA crosses up the 26 EMA and 55 EMA from below. Open Buy position. Place protective stop-loss below the most recent swing low. Exit the trade for 9 to 15 pips profit. To stay on the safe side, stop-losses are a vital part of trading. Most importantly, you should place a Stop-losses around 2-3 pips just below the last low point of a particular swing. Moreover, as the Forex 1-minute scalping strategy is a short-term trading, it is expected to gain 8-12 pips on a trade.

Forex 1-Minute Scalping Strategy Sell (Short) Entry Point. 12 EMA crosses down the 26 EMA and 55 EMA from above. Open Sell position. Place protective stop-loss above the most recent swing high. Exit the trade for 9 to 15 pips profit. As soon as all the items are arranged at the right place, you may open a short or sell order. Moreover, the stop-losses are positioned near 2-3 pips below the last low point of the swing. The Pros and Cons of Forex 1 Minute Scalping Strategy. In order to look how useful the strategy is for beginner traders. Here, are some of the pros and the cons you should know about: Small movements are easier to achieve. Smaller moves occur far more frequent than larger ones. Even when the market is less volatility even then traders can book smaller profits. Should have more information about the markets.

Quick reflexes and mathematical skills needed. Time-consuming and something may lead to stress. Think we missed something? Let us know in the comments section below.


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