FOREX scalping is profitable when it is performed correctly. The FOREX scalper EA (Expert Advisor) is very risky still it is a very profitable way to trade the currency in FOREX market. Not all FOREX traders make money by FOREX scalper, some will gain tons of money and others may lose their shirts. Now the question arises: how can we stack the odds in our favor by using FOREX scalper EA?
There are three criteria to reduce the risk of losing stated below:
• Carefully chose the brokers
It is difficult to get the correct broker when you are using FOREX scalper EA because many brokers do not like scalper EA and particularly object to the quick profit, since your profit means their loss. However, if your scalper moves in a market and out of a market very fast then broker does not have the chance to cover their risks. So at the time of your profit they do not want your business.
Then you may be having the question that how I can choose brokers. You should choose brokers who has a place in the ECN and who do not rely on third party are happier to accept scalper strategy. Also you can ask the developer of your EA or who has recommendations from other scalping traders in FOREX forums.
• Manage your risk
Scalping strategies readily on many small trades and so many people who were new to FOREX trading assume that they are less risky than the system which trusts on a higher profit per trade. If you do not want to wipe out of the game you should have a risk management.
• Understand the Scalper EA
To understand the scalper EA’s work is very important. Meaning, one should have a realistic expectation about things like number of time it will trade in a week, on a successful trade on average how much it will make, on an unsuccessful trade how much it will lose, the percentage of successful trades etc.
All of this helps one to optimize the risk and what you can expect in terms of your bottom line in the long term. Do not rely on information from the developers or from the user in this respect. Because this is not the matter of trust it just depends on different variables to each individual. So, make sure you own back testing and demo testing before starting FOREX scalper EA.