All about MetaTrader Expert Advisors and MetaTrader Indicators.
Forex Scalpers
Posted 10-21-2008 at 04:34 PM by robertinno
Forex Scalpers
What is scalping? Scalping is a trading strategy based on taking profit of 2-15 pips. Majority of scalping systems is based on opening of orders from borders of channel during quiet time on market. What is important to take into account when creating scalping trading systems?
Spread is a difference between Bid and Ask, i.e. between buying price of currency and selling price of currency. Of course, if we are going to create trading system aimed to bring profit of about 3-5 pips, even 1 pip difference in spread is very significant. Pip price is quite important, that is why the development of systems for pairs like EUR/GBP (pip price is high) is made very often. Quotes are also vitally important. What does it mean? I think it is no secret that many brokers filter (smooth) their quotes. If we compare ticks of global quotes supplier and almost any broker with Metatrader 4 platform, the difference will be obvious. Thereby brokers make functioning of scalping systems almost impossible. Maybe you saw systems added in monitoring on little-known servers; the profit curve of these systems is almost a flat line. Probably, someone even bought such systems and was very disappointed, when such system rapidly spent his deposit. This is the way how small brokers attract clients, demonstrating smooth quotes in demo version. But if you open an account in such “office”, the probability of that you won’t have the same quotes in reality or won’t get your win. Your account will be frozen. Dishonest developers of expert advisors also use this scheme. They monitor their simple advisors on such quotes and sell them to beginners.
Advice 1: you should buy only advisors with forward test on Alpari, InterbankFX, and Fxdd servers or servers of other major broker.
How to choose quotes. Comparison of quotes is not simple. Our company has developed DDETool metatrader program for this purpose. Using our program you can make a real-time import of quotes from Metatrader program to any program with of DDE server support, for example, to MS Excel. MS Excel resources give you an opportunity to make any analysis of ticks and to choose broker. Some brokers do not allow to earn money using scalping.
DDETool use example
Install DDETool on terminal: AlpariUS. These brokers are often recommended as the most appropriate for scalping. Let’s import data of both DDETool in MS Excel. We can make a real-time comparison of quotes (ticks) of several brokers: it is possible to write scripts and to compare quotes using MS Excel or accumulate ticks and make a comparison.
Surely you want to ask why we do not compare minute quotes. Here is the answerJ. Brokers can correct quotes from history, so only the real-time comparison of ticks gives us a real picture.
It is necessary to understand that broker is not on your side, and any trading advices should be considered very carefully. Only having good tools of analysis (metatrader software) and trade (metatrader expert advisors) you can beat broker on his territory.
Advice 2: you shouldn’t work with brokers who do not permit to use scalping even using ordinary expert advisors.
Accuracy of input in scalping systems is the guarantee of system’s success. I know some well working scalping systems, and their input point is chosen in different ways. For example, input is realized from High and Low in popular Stomper EURGBP metatrader expert advisor, and input is realized from linear regression channel in metatrader expert IntellectualPro and the channel is optimized by many iterations (it improves quality of input).
Output also can be realized in different ways:
- Fixed take profit and stop loss (EA Stomper)
- Take profit and stop loss pulled up along channel borders of linear regression (EA IntelectualPro).
Selection of trading terminal for scalping. We can adapt (rewrite) expert advisor from Metatrader 4 trading terminal to any other trading terminal of broker who has API, for example, forex.com or dukascopy.com. We recommend this way for traders with big deposits.
Best regards,
BJF Trading Group
Metatrader Expert Advisors | Forex Robots | Metatrader Indicators | MQL4
What is scalping? Scalping is a trading strategy based on taking profit of 2-15 pips. Majority of scalping systems is based on opening of orders from borders of channel during quiet time on market. What is important to take into account when creating scalping trading systems?
Spread is a difference between Bid and Ask, i.e. between buying price of currency and selling price of currency. Of course, if we are going to create trading system aimed to bring profit of about 3-5 pips, even 1 pip difference in spread is very significant. Pip price is quite important, that is why the development of systems for pairs like EUR/GBP (pip price is high) is made very often. Quotes are also vitally important. What does it mean? I think it is no secret that many brokers filter (smooth) their quotes. If we compare ticks of global quotes supplier and almost any broker with Metatrader 4 platform, the difference will be obvious. Thereby brokers make functioning of scalping systems almost impossible. Maybe you saw systems added in monitoring on little-known servers; the profit curve of these systems is almost a flat line. Probably, someone even bought such systems and was very disappointed, when such system rapidly spent his deposit. This is the way how small brokers attract clients, demonstrating smooth quotes in demo version. But if you open an account in such “office”, the probability of that you won’t have the same quotes in reality or won’t get your win. Your account will be frozen. Dishonest developers of expert advisors also use this scheme. They monitor their simple advisors on such quotes and sell them to beginners.
Advice 1: you should buy only advisors with forward test on Alpari, InterbankFX, and Fxdd servers or servers of other major broker.
How to choose quotes. Comparison of quotes is not simple. Our company has developed DDETool metatrader program for this purpose. Using our program you can make a real-time import of quotes from Metatrader program to any program with of DDE server support, for example, to MS Excel. MS Excel resources give you an opportunity to make any analysis of ticks and to choose broker. Some brokers do not allow to earn money using scalping.
DDETool use example
Install DDETool on terminal: AlpariUS. These brokers are often recommended as the most appropriate for scalping. Let’s import data of both DDETool in MS Excel. We can make a real-time comparison of quotes (ticks) of several brokers: it is possible to write scripts and to compare quotes using MS Excel or accumulate ticks and make a comparison.
Surely you want to ask why we do not compare minute quotes. Here is the answerJ. Brokers can correct quotes from history, so only the real-time comparison of ticks gives us a real picture.
It is necessary to understand that broker is not on your side, and any trading advices should be considered very carefully. Only having good tools of analysis (metatrader software) and trade (metatrader expert advisors) you can beat broker on his territory.
Advice 2: you shouldn’t work with brokers who do not permit to use scalping even using ordinary expert advisors.
Accuracy of input in scalping systems is the guarantee of system’s success. I know some well working scalping systems, and their input point is chosen in different ways. For example, input is realized from High and Low in popular Stomper EURGBP metatrader expert advisor, and input is realized from linear regression channel in metatrader expert IntellectualPro and the channel is optimized by many iterations (it improves quality of input).
Output also can be realized in different ways:
- Fixed take profit and stop loss (EA Stomper)
- Take profit and stop loss pulled up along channel borders of linear regression (EA IntelectualPro).
Selection of trading terminal for scalping. We can adapt (rewrite) expert advisor from Metatrader 4 trading terminal to any other trading terminal of broker who has API, for example, forex.com or dukascopy.com. We recommend this way for traders with big deposits.
Best regards,
BJF Trading Group
Metatrader Expert Advisors | Forex Robots | Metatrader Indicators | MQL4
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Good article ;-) Interesting read.
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