Forex expert advisor scalper is an entirely automated trading system, Itemanated from channel strategy and several indicators developed by forex traders with extensive knowledge of the trading system. It is a trading procedure used by forex traders to buy a currency and then hold it for a minimal period of time in an attempt to make profit from it. Their profit target is usually small ranging from 8-10 pips with a plethora of 30 pips its main aim is to trade in large quantity, sell and earn a small profit each time.
Let’s look at some basic features of the Forex scalper
1. They basically seize every profit opportunity and terminate loss from every position.
2. You can also decide the equity percentage you are willing to put at risk.
3. Since it is automatic, as the balance increases, the lots also replicates the same.
4. It is very much capable of making profit from stable market as well as fraught market.
5. It also uses a strategy which depends on accurate exit from the lock.
6. It can also be used based on any time interval.
Scalping uses a distinctively trading algorithm based on the price fluctuation for figuring out the market condition. Based on the selected lot, it can trade either on a specified level or on a dynamic level which is calculated based on free margin and risk input.
It is widely sought after among traders owing to the fact that not everyone have the time and patience for medium and long term trading. Automation of trading will authorize not to be restricted to the monitor and shelter automated scalping.
It is also widely known because it brings much lower requirements for existing deposit while producing profit in comparable magnitude once they are available, depending on market conditions implying that it can trade up to 600 times a day. Theydistinctively have their trading style and they make the most of the market both in trend and when the prices are in the horizontal channel.
There are Advantages and Disadvantages that result from using the Forex Scalper. Let’s delve further into the advantages before going to the angle of the disadvantages.
• By using money from market swiftly, the chances of success per trade increases tremendously.
• They work extremely well when the market condition remain constant which allows moving averages to respond appropriately.
• It is also not very complex and flexible to use.
The Draw downs include
• In as much as success per trade increases tremendously, the ratio of risk to reward is highly unfavorable this is due to the fact that every loss have to be compensated with multiple profitable trades which is considered very risky
• The slow market time does not reflect the market value precisely.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.