♞ Introduction to Forex Scalping Trading Strategies
Forex scalping involves opening and closing multiple trading positions daily, aiming for small profits of a few pips (typically 5–10 pips). These positions usually remain open for 1–2 minutes. Scalpers trade primarily on the 1-minute and 5-minute charts and often focus exclusively on two Forex pairs: EURUSD and GBPUSD. Choosing one of these pairs is essential, as they offer the narrowest spreads in the market (along with USDJPY). Scalping should be limited to low-cost trading opportunities.
Scalpers can reduce trading costs by participating in a free Forex rebate plan: ► Online Forex Brokers
🛠 Characteristics of a Forex Scalping Strategy
What characterizes all the following Forex scalping strategies is the high number of trades per day combined with an unorthodox take profit/loss (P/L) ratio. The low P/L ratio means that the potential loss on each trade exceeds the potential profit. You may execute 30–40 trades on average, with the P/L ratio typically below 1. To be profitable as a scalper, you need a winning rate above 65%, meaning that out of 100 trades, at least 65 must be winners while 35 can be losers. This is a challenging requirement, making scalping unsuitable for many traders.
■ Number of Daily Trades: 20 - 40
■ Profit/Loss Ratio: 0.5 - 2.0
■ Leverage: 1:30 (or more for Non-Europeans)
■ Spreads: very important (max 1.5 pip)
■ Slippage: very important
■ Overnight Charges: No
■ Upcoming News: usually irrelevant (Scalpers avoid to trade 30 minutes before and after key news releases)
Forex scalping strategies can be manual or automated strategies. The automated Trading Strategies are applied by automated trading systems called Expert Advisors or Forex Robots.
- You may also: ► Compare Expert Advisors here
- Alternatively, you may scalp Forex by building a customized trading system: ► Info about the EA Builder for MT4/MT5
These are some trading strategies for Forex scalpers.
♔ Scalping Strategies
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TRADING STRATEGIES |
ASSET AND TIMEFRAME |
INDICATORS AND SETUP |
TAKE PROFIT AND STOP-LOSS |
MORE INFO |
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HIT & RUN STRATEGY |
■ M1 timeframe ■ Forex Currencies
■ 30 daily trades on average |
■ Parabolic SAR (default) settings:
■ Simple moving average (SMA): 50 periods |
■ Take Profit: 8-10 pips ■ Stop-Loss: 12-15 pips ■ Profit/Loss Ratio: 0.65 |
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BOLLINGER-RSI SCALPING STRATEGY |
■ M1 time frame ■ Forex Currencies
■ 8-10 daily trades |
■ Bollinger Bands (i) 12 Periods (ii) Deviations 2 (iii) Shift 0 RSI The standard settings (14,9) |
■ Take Profit: 5-7 pips ■ Stop-Loss: 10 pips ■ Profit/Loss Ratio: 0.5 / 0.7 |
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THE STOCHASTIC SCALPER STRATEGY |
■ M5 time frame ■ Forex Currencies ■ Volatile Commodities ■ Volatile Stocks and Indices ■ 10-15 daily trades |
■ Stochastic Oscillator Settings at 10,3,3 ■ Simple moving average (SMA) 200 periods |
■ Take Profit: 20-30 pips ■ Stop-Loss: 20-30 pips ■ Profit/Loss Ratio: 1 |
◙ Forex Scalping Trading Strategies
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🔗 READ MORE
» Introduction to Trading Strategies
♞ DAY-TRADE STRATEGIES
» Falsebreak Candle
» Bollinger-RSI
» Stochastic Day-Trade
» Breakout Strategy
♚ SWING-TRADE STRATEGIES
» Riding the Trend
» Moving Envelopes
» MACD Swing
♜ SCALPING STRATEGIES
» Stochastic Scalper
» Bollinger-RSI Scalping
» Hit-Run Trading
♟ STRATEGIES FOR BEGINNERS
» News-Trading
» Follow-The-Trend
» Support and Resistance
» Fibonacci Retracements
» Stochastics Trading
» Chart Patterns
💱 MARKET CORRELATIONS
» US Yields and USDCHF
» Crude Oil and Forex
» USDJPY and US Stock Indices
» AUD and Gold Price Correlation
