Scalping strategies with the greatest application efficiency

It might seem that scalping trading is simply short-term trading, but it also has additional sub-strategies.

The concept of short-term trading is quite broad, encompassing timeframes ranging from a few seconds to 15-20 minutes. Almost any trade within this timeframe can be considered scalping.

Scalping strategies are conventionally divided into three groups: pipsing, classic, and low-risk scalping. Clearly, each of these options has its own distinctive features.

Each of the options can only be used 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

• Pipsing - trading on the M1 (minute time frame), leverage 1:300 - 1:500, the duration of transactions is only a few seconds, so trading should be conducted only with brokers specializing in scalping .

The use of indicators with this type of scalping strategy is practically impossible; trading is conducted purely based on observing 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 repeat with enviable regularity. Try opening a trade on a demo or cent account, and you will see for yourself how the financial result changes - a few points in the direction of the trend, then a pullback, then movement with the trend again. These are the points you should catch; other scalping options simply do not exist.

To make the work easier, it is best to use two trading terminals: open a minimum transaction in one, on a cent account, and use the second for opening large-volume transactions, while focusing on how the price moves on the first terminal.

• Classic scalping strategy - in this case, you trade on the M5 interval with leverage from 1:200 to 1:300, the transaction lasts from 1 to 5 minutes. At the same time, as in the first case, you should not forget about scalping brokers, since the time limit is usually at least 3-5 minutes.

With classic scalping, you can already use indicators or oscillators to find entry points into the market; Stochastic ; transactions are opened according to general rules when exiting the overbought or oversold zone with the intersection of lines. Trading using Stochastic 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. Transactions are opened when there is a reversal at the channel boundaries.

• Low-risk trading – risk reduction is achieved by reducing leverage to 1:100, 1:200 and expanding technical analysis capabilities. Trading is conducted on M15, with average trade durations ranging from 5 to 15 minutes, eliminating broker penalties. The profitability is unmatched by scalping.

In this case, virtually any Forex strategy can be used, with the possible exception of breakout trading.

When trading with high leverage, remember that this is what makes scalping strategies particularly risky, so you should not only constantly monitor your trades but also ensure the smooth operation of your trading terminal to eliminate the risk of technical failures.