Scalper Expert advice
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i hope to try my hands on scalper EA but wonder what is the standard for such EA? meaning is what is the min pips to target and how frequency it scalp? what is the acceptable profit it generate a month as acceptable? any seniors who taken this path, please share some insight for a newbie.. thanks!!
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@vnpython-0
It depends on your trading costs. If the costs (spread, commission, swap) are higher than 20% of your average profit, it means you have to get roughly 70% winning trades, on 1:1 SL and TP. No one has that big predictive power.
To decrease the % of trading cost of average profit, you need to trade the most volatile periods (of the trading day).
Just make an ea and analyze the trading costs in the excel report. If the % is too big, increase your average TP and trade less frequently. -
Hacer un EA escalper, es muy difícil, lo normal es que no hagan demasiadas operaciones, y si consigues hacer uno que opere mucho seguro que te da perdidas.
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To make a scaper EA, it is very difficult, the normal thing is that they do not do too many operations, and if you manage to make one that operates a lot, it sure gives you losses....
thanks roar and luisri's reply. i cant make it work with normal 1:1 and i just hoping to breakeven or make profit/loss 5% at end of the month. and let the trading volume compensate me by the broker.
after making tons of beta scalper, i think i am gonna:
- auto stop scalper once it hit the target growth
- build in equity protect function to lock in profits
what TF is best for scalping? tried M1 it totally cannot expect to be able to survive markets' onslaught.. google on this scalping only result in strategy...
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You must put a 3 SL:1 TP at least.
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@juanjo 3 SL - 1 TP does not work. You need 3 wins for every loss to break even. IMHO.
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I am working on a scalping EA. It's all about risk management.
Enter Long on Bull candle (Momentum)
Enter Short on Bear candle (Momentum)SL: 3 pip
Trail: .5 pip
At 2 pips profit - Move stop to break even
At 10 pip Close 1/2 trade
Ride the trade til stop Loss activated.The key is to reduce risk quickly. A break even trade beats a loss all day long. You need some big winners to build equity. Using a TP to close entire trade limits profitability and creates a signal to immediately enter a duplicate trade, which often creates a loss.
I have found that most brokers limit TP and SL to avoid scalping. So I am working on building virtual trailing SL and TP that converts to market orders to avoid published stops.
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Sounds interesting. Please share you project here!
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@marquillos21 Impressive! One year later I got the answer! LOL
Did you test it? -
The cost of trades isn't necessary lower when the volatility is high though(not relatively). The ask-bid size depends on the liquidity of the asset, which is the number of buyer and seller, and their balancing. In very high volatility moments, the market is often in a imbalance order position, meaning that there are way more sellers than buyers or vice versa. The ratio spread/price fluctuation can then make it worth or not, depending on the size of the fluctuation. That's why studies tend to show that trading algorithms are less present during event days/big return days.
source : https://www.sciencedirect.com/science/article/pii/S0927538X20302201?via%3Dihub -
@seb-0 yes, very true, especially in stock markets.
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@roar
Yes I forgot to mention that all studies I found have been made on stock markets, I don't really know why. But in "normal" periods a bigger volatility is better indeed. -
Its not completely impossible but it's hard. If you use quant principles it would workout better.
Its not just the risk management but also the timing. Its risk : time most of it.
I can tell because my manual scalping has a great return rate. But when it comes to getting it done by an Expert Advisor it's hard to reason with my strategy.
