Mr. M,

I've done a lot of what you have done already. And my results have been similar. I just never could figure out how to overcome the spread of the broker when you put in so many trades. You are trying to trap volatility. But I could never bottle up the volatility because in the 1M TF, you are dealing with noise and complete random erratic movments. And your next logical step is to either use smaller lot sizes, trailing stops, or have more funds. I've done all of that, it just gets to the point where I'm looking at the reward and the risk, and I ask myself...is it really worth it. Every time, I have said no and then abandon my scalper in favor of long term trend following.

I do not believe that just having price action and volatility is enough to trade a scalper. If you have ever known or read what the real scalpers do in the futures or stock market, it is very interesting. They never trade both directions at the same time. They are in and out. If they get in, and their trade is not in favor of them from the start, they immediately close the trade. And most importantly, they are not watching price at all. They could trade without looking at the price. They are looking at the order flow, DOM, walls, patterns of market makers, size, and market internals. None of which is available for forex. And they would not be able to have the kind of games like slippage and requote from bucketshops...that would absolutely kill them.

With that knowledge in my head, I have tried and tried to build a scalper. But have been not able yet. You need a quick statistical edge to consistently scalp successfully. And most likely, you won't be using a MT4 platform. And even if you build a decent pyramiding scheme, the broker comes in and flag you because one can not physically execute that many trades within a short period of time without violating their "rules" on holding time. If the forex game is on a centralize market, then I would put more faith and priority in developing a scalper. At this moment...not so much. Something to think about.

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