Home AUTOMATION Scalping With EAs Using Low-risk Exposure

Scalping With EAs Using Low-risk Exposure

119
0
Scalping with EAs using low-risk exposure

Scalping is one of the most difficult trading methods in the investment industry. Many traders think scalping is the only way to become a millionaire in the Forex market. But scalping is only for the pro traders who have years have experience. A small mistake can cost your entire trading account when you try to trade the lower time frame. Does this mean we can’t scalp the market and make a big profit without risking our trading capital? Well, the answer greatly depends on your trading skills. Those who have the skillset to lower down the risk can easily scalp and start making some big profit even with a small trading account.

types of risk exposure

We have already said, scalping is only applicable for the highly skilled traders. But things have changed a lot. Just by using the simple trading bots or EAs an amateur with basic knowledge can start making a profit by automating their trading strategy. But for that, they must choose a reliable trading bot or EAs. In this article, we are not going to discuss the profit factors associated with scalping. We will highlight some of the key steps that you can take while scalping the lower time frame with the EAs. By following our tips you can reduce the risk to a great extent. Let explore the amazing steps.

Use semi-automatic trading process

Making a consistent profit by using the automatic trading process is really hard. Even if you manage to find the world’s best forex EA it won’t be possible to deal with the complex market sentiment. At times the market doesn’t really list to the technical or the fundamental data. It pays attention to the sentiment and decides its movement. And this is where the semi-automatic trading process comes into action. Even if you have the basic knowledge of this market, at times you have the gut feeling there is something wrong with the trade setups. These are the moments when you do not execute any trade. Eventually, you will find that the market is not working as per the trade setups and your intuition will save you from the losing trades.

Use semi-automatic trading process

Use the EAs in the semiautomatic process so that you become the person to execute the orders. The EAs will just give you a notification about the certain trade setup and you need to analyze the market behavior and condition. To make things clear, let us give you a simple example. After installing the EAs in the trading platform, you might find very good scalping signals prior to the ECB press conference. Do you really think it would be a great idea to trade in such a market condition? Any person having a slight idea about the press conference will not execute any trade. So, never trust the machine as it greatly increases the risk.

Risk management policy

Since you will be scalping the market with the EAs, you need to be careful with the risk exposure. To manage the risk exposure, you can add some simple coding that will limit the number of trades per day. In fact, you can limit the maximum lot size for any trade. Though it will limit your profit factor to a certain extent, it is one of the most effective ways to protect your trading capital. Some of you might say, trading the market is a super complicated task and it’s not possible to avoid losing trades. Its 100% right. But do have the opportunity to create a strong risk management rule in your EAs. Hire a professional MQL coder and he will curate the risk management plan to your EAs.

Risk management policy

Trading is not making a profit. And when it comes to scalping, it becomes more about dealing with the risk exposure. Some of you might think using the low leverage account will help. But even with 1:10 leverage, you can open insane volume trade which can put your investment at great risk. And all these problems can be sorted out by using strictly coded EAs that limits the risk factors at trading.

Test your EAs

By now you know how a smart EA can greatly reduce the risk at trading. But you need to test the EA in the demo account before you trust it with your real account. Unless you can make some regular profit in the demo environment, you should not try to use the EAs in real account. Most of the EAs need minor adjustments even though the codes are super perfect. Based on your demo result, bring necessary change to your EAs and these changes can be done by tweaking the default settings. Once you find the optimized settings for the EAs, you need to focus on the performance factor. If things seem perfect you are good to go with real money. If not, work on the source code and bring the necessary adjustment to lower the risk factors.

LEAVE A REPLY

Please enter your comment!
Please enter your name here