Scalping strategies with the greatest effectiveness of application
It would seem that scalping trading is simply trading on short time periods, but in addition there is an additional division into certain substrategies.
The concept of trading on short time intervals is quite broad and covers an interval ranging from several seconds to 15-20 minutes; almost any transaction that fits into this interval can be classified as scalping.
Scalping strategies are conventionally divided into three groups - pipsing, classic and scalping with the lowest risk. It is clear that each of these options has its own distinctive features.
Each of the options can only be applied based on the current situation on the forex market, only this will allow you to achieve the greatest efficiency
Types of scalping strategies for Forex
• Pipsovka - trading on M1 (minute time frame), leverage 1:300 - 1:500, duration of transactions is only a few seconds, so trading should be carried out only with brokers for scalping .
The use of indicators with this type of scalping strategy is practically impossible; trading is carried out purely on the basis of observations of the movement of the currency pair and the candlestick chart.
You catch the slightest fluctuations in the exchange rate, which amount to 3-5 points, but are repeated with enviable regularity.
Try to open a deal on a demo or cent account, and you will see for yourself how the financial result changes - a few points towards the trend, after a rollback, again moving along the trend. These are the points you should catch; there are simply no other options for pipsing. To make your work easier, it is best to use two trading terminals, in one we open a minimum transaction on a cent account, and the second one is used to open large-volume transactions, while focusing on how the price moves on the first terminal.
• Classic scalping strategy - in this case you are already trading on the M5 interval with a leverage of 1:200 to 1:300, the deal lasts from 1 to 5 minutes.
In this case, just as in the first case, you should not forget about scalping brokers, since the time limit is usually at least 3-5 minutes. Stochastic is a good choice ; we open trades according to the general rules when we come out of an overbought or oversold state with the lines crossing.
Trading using stochastics is described in detail in the description of the oscillator itself. The second option is to use price channels; it is the price channel that allows you to determine the pattern of trend movement and identify entry points.
Trades are opened when there is a reversal at the channel boundaries. • Trading with the lowest risk - risk reduction is achieved by reducing the leverage to 1:100, 1:200 and expanding the capabilities of technical analysis.
Trading is carried out on M15, the average duration of transactions is from 5 to 15 minutes, which excludes the use of sanctions by the broker. The truth and profitability can no longer be compared with pipsing. In this case, you can use almost any Forex strategy for trading, with the possible exception of breakout trading.
When trading using high leverage, you should always remember that this is what makes scalping strategies especially risky, so you should not only constantly monitor the transaction, but also ensure the uninterrupted operation of the trading terminal to eliminate the risk of technical failures.