How to test a Forex Scalper robot
There are many profitable robots now available on the market that can be used to trade automatically. Many of these robots use scalping as their main trading strategy. The scalp can be done at any time. Now before we talk about how to make a robot scalper safe, we need to understand a little bit what scalping is in order to know how to make the robot scalper safe. There are many business strategies. One of the most popular trading strategies among traders is scalping. Scalping can be done in almost all markets such as stocks, futures, commodities or Forex. It does not require any market analysis or trend analysis and can be done almost without using any indicators.
Scalping is especially popular with currency traders. As a Forex reseller, your goal is always to look for a few pips like 3-12 per trade. Now, each trade has a cost in the form of a spread that you must pay when you enter or exit. Like most of the time, the spreads offered by brokers are generally no more than 3 pips, you as a reseller must make at least 3 pips per trade to break even.
When scalping, you must ignore the rules of risk and money management. Most of the time, resellers trade without a stop loss or have a wide stop loss that can be as wide as 30-70 pips. Your goal is to simply get in and out as fast as possible by making a few pips.
Now having such a large stop loss is too risky. This is not trading, it is more like gambling. You are prepared to make a small profit at the expense of a large loss. One loss and you got it! If your goal was to make only 5 pips and your stop loss was 40 pips, you will have to make 8 winning trades in a row to break even.
I mean to make 3-12 pips, you are ready to lose almost 50-100 pips. So scalping requires a lot of experience! Is there a way to safely scalp? There is a simple method that you can use to make your scalp.
If you’ve been trading for some time, you should already have a good intraday trading system that you use on a daily basis to make money. Use that same intraday trading system with the usual tak profit target of assume 100 pips with the usual stop loss of assume 30 pips. Since you use this system for trading and not betting, you will most likely do a market analysis and only enter a trade that you think is a high probability trade. Just add a trailing stop of, say, 10 pips to this system. So in case the market turns back, the trailing stop stops you and your profits are locked. In case the market doesn’t track, you will end up doing what you intended in the first place.
Since scalping is one of the most popular trading strategies and many traders use it on a daily basis to make 30-70 pips each day. Many robot developers have also programmed their robots to scalp in rapid succession. Many profitable robots use this scalping strategy as their main strategy. Now the problem is that these robots scalp without using a stop loss. This makes these robots too risky. A big loss and it will take a long time to recover. So how do you do it? Just change the default settings and place a small stop loss. Try the robot again! If it works and the performance is good, please post-test on a demo account. In case the progress tests are also satisfactory only then trade live with said robot. If not, just avoid trading a reseller robot as it would be too risky for your trading account capital.
