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Some programs forex scalping expert advisor that were popular until recently have been getting a bad press in recent months. It seems they are selling when they should buy and buy when they have to sell. So what happens, and you still can trade successfully with a scalping expert advisor?
Scalping is a tactic that relies on making small, fast trades at the exit with a non-profit many times the size of the spread. As is usually no more than 3 times the spread is not considered scalping all. Scalpers are designed to move in and out of the market in just a few minutes and sometimes less than a minute. They plan to do this many times in one day to reach many small profitable trades with up to good profits over time.
The first problem for all forex scalpers is to find a broker that will let you do that. Brokers, even if they are not deliberately take a stand against you, often a delay before they cover your position on the open market. This may be a few seconds to a minute which is not significant with the long-term trade, but can put them in a loss position successfully scalpers who can close their trade before the broker covered.
But assuming that you are connected with a broker who will accept your EA works this way, why is it that sometimes the EA itself is beginning to clog the trade?
One reason is that some of the EE were based on indicators that the offset, such as moving averages. It should be obvious to anyone that if you are trading on small price movements, you must react quickly to new trends and a lagging indicator is not the best to use.
However, while the market was relatively stable with a slow evolution in motion, it was possible to take advantage of scalping tactics, even with lagging indicators. This trend may continue for several years, long enough for many to believe that it is a real possibility and certainly long enough for software scalping expert advisor to be developed to implement these strategies.
But sooner or later the market will enter a more volatile period. This can occur only every 7-10 years, but when it does, lagging indicators are useless for scalping techniques. It is better to use indicators such as Bollinger Bands, which are not based on measuring the movement of a long period in the past.
So if you want to continue scalping during periods when the market is particularly volatile, you should ask questions based on the software you plan to buy and look for a scalping expert advisor that does not rely on lagging indicators.