Monthly Archives: February 2018

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A Simple Scalping Trading Strategy

Category : Software

Today, effective trading consists in how fast you can react to the smallest changes in the market. This indicator is very important in formation of speculative yield, because the markets have become more liquid and volatile, and the period of “cheap money” has been going on for more than 10 years. Every fix api trader must adjust to the current market situation and have in his arsenal several tools in the form of scalping trading strategies (https://tradingsim.com/blog/scalp-trading-active-investing-strategy/ ).

Scalping is a kind of speculative trading, which consists in opening trading positions for a short time, which can be only a few seconds. This trading strategy requires high market volatility, which can be caused by a news background or by the presence of a number of trading signals (https://1sforexsignals.com/ ). Typically, this approach is implemented with the help of trading robots, which help fix api trader in his search for these moments.

So, we already understood that the scalping requires a news background, which will create an increased reaction in the fix api forex market, as well as the presence of strong trading signals. Already knowing this, you can create a simple scalping strategy. To do this, we divide them into two types:

  1. News scalping;
  2. Signal scalping;

News scalping

This type consists in opening of speculative positions at the time of publication of the fundamental indicators and other macroeconomic data. When the movement of the market is not normal in the form of increased volatility, the scalping trading robot can speculate on this by opening a series of transactions for both buying and selling. As a matter of fact, it is a news robot, but after all, it works in such a scenario. A more complicated algorithm will consist in a directly analysis of the data obtained and, based on this information, in opening transactions for purchase and sale of the financial asset.

Signal scalping

This is the most popular form of algorithmic scalping approach, which is used by the absolute majority of exchange speculators. The essence is very simple – you have to open transactions for purchase or sale only at the moment when all the trading signals are triggered. I focus on the fact that the most effective will be the application of 3-4 signals. Do not create a huge amount of analysis of different patterns and technical indicators. On the contrary, this can cause belated signals. It does not matter on the basis of which tools it will be implemented. Each manager determines this parameter. The main thing is that it was a working tool. The most important is the creation of qualitative risk and money management rules so that the robot can monitor these parameters and not go beyond the established percentage of risk.

Proceeding from this, it is possible to single out the key advantages and disadvantages of the scalping strategy.

Advantages:

  • Yield is formed thanks to the number of opened deals;
  • Short retention of the positions does not cause a deep drawdown and, as a consequence, it retains the risks;
  • It allows to combine this approach with the other strategies due to the differences in the internal logic of the work, as well as the time period.

Disadvantages:

  • It can be accompanied by a large number of unprofitable positions, therefore, the intervention of the fix api trader is necessary to control the risks;
  • No long-working algorithms that need to be constantly automated and as a consequence the robot cannot fully operate in a regular automatic mode;
  • Speculative trading is accompanied by minimal trading indicators.

These two simple types of scalping trading systems are quite easy to use in the financial market, and also to implement in the form of an algorithmic approach. I would not single out this approach as the main one in the work of the manager on the financial market, because the main yield is formed on large trends and timeframes. However, as an instrument for diversifying my trading, I think that the trading robot should be based on a speculative algorithm.


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Robots that do not need a regular trader support

Category : Robots

Algorithmization of the trading process is developing every year. There are new ways of forecasting the future value of the financial asset and additional elements on the market. This approach makes it possible to significantly simplify the task of the fix api trader to avoid the constant monitoring of the market in searching for trading signals. But they still need control from the side of managers. However, not all the robots need intervention in their process and today we will talk specifically about such algorithmic strategies.

The essence of the trading robot is to automate the trading strategy in order to obtain a passive profitability in the financial market. In fact, the robot consists of a set of certain conditions that can be combined into a single sequential algorithm of actions. If it is incorrectly outlined in the code, situations of deep drawdown may arise. That is why, who exactly automated your strategy is a very important factor for the future success to be achieved in the fix api forex market.

As for the trading robots that do not need constant monitoring by the traders, I can distinguish a few algorithms of this kind:

  • Speculative scalping strategies. Due to the fact that such a strategy will trade for short time periods, they do not need much monitoring of their activities. Here, the prescribed risks in the robot play much more important role. Thus, if the strategy goes into the drawdown zone, it is better for the robot to stop its work and to notify the fix api trader of this. However, if the algorithm is working, then by fixing 20-30 points of profit every day, you will not need to interfere in this process.
  • Arbitration robots. This approach is based on trading at the time of exchange rate discrepancies between the quotes of the same financial asset, but on different stock exchanges. Given the fact that the robot is also speculative, fix api arbitration approach has no risks at all, because the purchase and sale of the asset is carried out at the highest price discrepancy and when the quotes at different platforms or fix api forex brokerage companies return to the regulatory range, several yield pips are fixed. Arbitrage robots, due to the internal whole mechanism of work, also do not need to regularly monitor their outcome (http://forexzzz.com/product/zzz-2-leg-arbitrage/ ).
  • Your author’s trading systems. Of course, if you have your own strategy that brings profitability to you for more than a year, you can turn it into a ready-made trading robot. However, the element about which I wrote above will be important here: correctly set all the parameters and conditions in the strategy. After all, if the written code differs from your sequence of actions, the result can be completely different. But if this is all right, then you can entrust your capital to yourself, but in the form of a robot.

In addition, algorithms such as grid robots or advisers, written on the basis of Martingale’s strategy, need only additional monitoring of their activities. And if you want to use such an algorithm, you should be aware of the maximum risks of this approach, which will spend your extra time instead of the process automation.

As you can see, there are algorithms that allow people to automate the process of fix api trading. At the same time, in the future work they do not need a constant support. But there are also those that, on the contrary, will force you to monitor not the market, but directly the work of the trading robot. Therefore, I recommend choosing a scalping or fix api arbitration approach, or fully automate your trading strategy.


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