EAs stands for expert advisors. It’s more like an advanced robot that analyzes the currency pairs and other major trading assets on behalf of the traders. EAs are nothing but a bunch of codes developed by the skilled programmers so that it can analyze the major price fluctuations and take decisions based on the complex market dynamics. Some of you might think EAs and robots are nothing but a waste of time and money. But if you know the perfect way to use the EAs, it won’t take much time to rely on the EAs. In fact, you start scalping the 1-minute time frame by using the smart EAs.
Scalping is one of the most difficult tasks in the Forex market. Unless you have extreme knowledge of the technical and fundamental parameters it will be really tough to make a profit by scalping the market. In this article, we are going to give you some amazing tips that can make scalping easier. In fact, you will be able to scalp the 1-minute time frame with a high level of accuracy just by using the smart EAs. Let’s dive deep.
Selection of the EAs
To trade the 1-minute time frame, you need to select the EAs with an extreme level of caution. Selecting random EAs to execute the trade is not going to work. Since you will be trading the lowest possible time frame, you should be extremely careful about the trade execution process. For instance, you can’t make any significant progress by using the EAs that trades based on different charts or harmonic patterns. Instead of that, you need to rely on the EAs that work on the principle of moving average.
When you use EAs that deals with the different kinds of the moving average, you should be careful about setting up the time period. Most of the time the traders think by using a lower period they can find the perfect signals to scalp the 1 minute time frame. But this is a very big mistake. You need to rely on the 100 or 200 days SMA to scalp the lower period with a high level of accuracy. These two moving works like charm and provides precise information regarding the potential demand and supply zone.
Testing the EAs in the demo account
After the selection of the forex EA, you need to test the functionalities of the EAs by using the demo account. Demo accounts are often considered as the blessings for the retail traders since it allows the new traders to test different kinds of the trading method without risking any real money. Instead of using different time frame you should try to scalp the 1 minute time frame based on the EAs reading. Remember the fact, the EAs should be used in the manual method. This means you should never automate the trading process.
So, how to use the EAs in the manual method. Instead of executing the trades, the EAs will calculate the important variables and tell you about the potential buying and selling zone. Based on the data of the EA you should analyze the market condition. If things seem perfect you should execute the trade. But try to avoid the trades that go against the major trend. Always remember, the trend trading method is one of the most effective ways to make consistent profit from this market. So, work hard and rely on long term goals to improve your 1-minute scalping strategy.
The risk to reward ratio
Some of the new traders often get carried away by seeing the high success rate of the EAs. But do you know that even the best EAs are most likely to fail in the Forex market? If you want to make consistent profit from this market, make sure you are not trading the market with 1:1 risk to reward ratio.
Though finding a higher risk to reward ratio is very hard when it comes to a lower time frame, still, you can do that by learning about the price action signals. Learning the different formations of the Japanese candlestick pattern is not all hard. In fact, you can easily master this skill in less than a month.
Dealing with the risk exposure
As a lower time frame trader, you should limit the risk exposure to a great extent Forget about the traditional 2% rule of money management. Look at the long term goals and try to improve your trading style by using low-risk exposure. Think twice before you execute any trade. Even if you EA suggest that you have the very best signals, still you should not risk more than 1%. And always make sure you are gaining more than 2% when the trade hits the potential take profit. At times revise your short term trading strategy so that you don’t have miss good trades due to the dynamic change of the market.