| There are many profitable robots now available in the | | | | almost 50-100 pips. So scalping demands a lot of |
| market that can be used for trading automatically. | | | | experience! Is there a way to do scalping safely? |
| Many of these robots use scalping as their primary | | | | There is one easy method that you can use to do |
| trading strategy. Scalping can be done anytime. Now | | | | scalping. |
| before we talk on how to make a scalping robot safe, | | | | If you have been trading for sometime, you should by |
| we need to understand a little bit about what is | | | | now have a good intraday trading system that you |
| scalping so that we know how to make the scalper | | | | use daily to make money. Use that same intraday |
| robot safe! There are many trading strategies. One of | | | | trading system with the usual tak profit target of |
| the most popular trading strategies among the traders | | | | suppose 100 pips with the usual stop loss of suppose |
| is scalping. Scalping can be done in almost all market | | | | 30 pips. Since, you use this system to trade and not |
| like stocks, futures, commodities or forex. It does not | | | | gamble, you would most likely do some market |
| require any market analysis or trend analysis and can | | | | analysis and only enter a trade that you think is a high |
| be done almost without using any indicator. | | | | probability trade. Just add a trailing stop of say 10 pips |
| Scalping is especially popular among the currency | | | | to this system. So in case the market retraces, you |
| traders. As a forex scalper, your aim is always to look | | | | get stopped out by the trailing stop and your profit is |
| for a few pips like 3-12 per trade. Now, each trade has | | | | locked in. In case the market doesn't trace, you end up |
| a cost in the shape of a spread that you have to pay | | | | making what you had intended in the first place. |
| when you make an entry or exit. As most of the | | | | Since scalping is one of the most popular trading |
| times, the spreads offered by the brokers is usually | | | | strategies and many traders use it daily to make |
| not more than 3 pips, you as a scalper need to make | | | | 30-70 pips each day. Many robot developers have |
| at least 3 pips per trade in order to breakeven. | | | | also programmed their robots to do scalping in rapid |
| When you do scalping, you have to ignore risk and | | | | succession. Many profitable robots use this scalping |
| money management rules. Most of the time, scalpers' | | | | strategy as their primary strategy. Now the problem is |
| trade without a stop loss or have a wide stop loss | | | | this that these robots do scalping without using a stop |
| that can be as wide as 30-70 pips. Their aim is simply | | | | loss. This makes these robots too risky. One big loss |
| to get in and get out as quickly as possible making a | | | | and you will take a long time to recover. So how to go |
| few pips. | | | | about it. Simply change the default settings and place a |
| Now having such a huge stop loss is too risky. This is | | | | small stop loss. Back test the robot! If it works and the |
| not trading, this is more like gambling. You are prepared | | | | performance is good, do forward testing on a demo |
| to make a small profit at the expense of a huge loss. | | | | account. In case, the forward testing is also |
| One loss and you have it! If your target was to make | | | | satisfactory only then trade live with such a robot. If |
| only 5 pips and your stop loss was 40 pips, you will | | | | not, then simply avoid trading with such a scalper robot |
| have to make 8 winning trades in a row to just | | | | as it would be too risky for the capital in your trading |
| breakeven. | | | | account! |
| I mean for making 3-12 pips, you are ready to lose | | | | |