- What is scalping? - Key benefits of scalping strategies - Disadvantages of scalping trading - Categories of scalping strategies

1. Scalping Strategies for Forex Trading

2. What is Scalping?
Scalping system is the process of making trading operations, which are
carried out in a few minutes with the aim of fixing a minimum price
movement (a few points).
This strategy will add to the positional or speculative positions day-trading,
in order to diversify risks.

3. Key Benefits of Scalping Strategies:
- A simple algorithm for performing trade operations;
- Combination with various technical indicators;
- The low rate of drawdown;
- Increase in the volume of trading operations (which for some
FIX API Forex brokers is an important indicator);
The ability to combine it with investment positions.

4. Disadvantages of Scalping Trading:
- Limited work (it is best to trade currency pairs with high liquidity, where
there will be no large spreads);
- Low mathematical expectation of the strategy.

5. Categories of Scalping Strategies
Scalping on the basis of the depth of market: this type is based on the
analysis of the positions opened by traders, banks or shopping robots,
leaving their claims in a market book.

6. Categories of Scalping Strategies
Graphic scalping: this type allows to make deals on the basis of technical
figures and hold results thanks to the classical methods of price action
analysis.

7. Categories of Scalping Strategies
Scalping based on technical indicators. As I wrote above, scalping strategy
can work with almost any indicators. Important is the fact that the
transaction is committed after two or three profitable bars on a small
timeframe.

8. Categories of Scalping Strategies
Arbitration scalping. This type is difficult for a trader to perform. Here
trading robots come to help, written specifically for trading via the system
of FIX API Latency and 2-Leg Arbitrage.

9. Conclusion
Using scalping strategies in trading, you must taken into account the fact
that this process has to be automated in the future. There are already many
expert advisors and robots on the market that are written specifically for
this type of trading. Selection of algorithmic trading will automate this
process and facilitate the constant market monitoring.