Let’s start from the “scalping” strategies, which are very popular today.
I would call scalping strategies as strategies with an income of 2-3 pips. But my opinion doesn’t mean anything for you. You have to ask broker whether he allows forex scalping strategies or not, and which strategies refer to scalping strategies. Broker will give you a clear definition. If you will recognize a scalping strategy as your strategy, than you have to change it or look for another broker. The second thing is that you have to analyze the “spread” on the traded pair in current several days, since announcements on the brokers site might be misleading. For the “spread” analysis, I can share indicators with you.
They are important for the scalping strategies:
- authorization of a broker
- “spread” on the traded pair.
For example, let’s take a pair of successful MT4 forex robots, scalpers Stomper and IntellectualPro. In order to work stable, they need a “spread” on the eurgbp pair not more than 4 pips in the Asian session.
MT4 expert advisor “Stomper” real account monitoring (Click bar below to VIEW monitoring page)
MT4 expert advisor “Intellectual” monitoring page (Click bar below to VIEW monitoring page)
I found a few brokers, who accept scalping strategies, and 2 brokers who don’t. I wrote the letter for these two brokers, where I asked: “What do you mean under scalping? What is the minimum profit?”. I got a respond: “Your strategy has to take a profit in more than 5 points or orders time life has to be longer than 5 minutes. I connected with Developer Company of these scalpers and, in 1 hour, they adopted adviser under the broker. If a broker hides from a question, do not cooperate with this broker company.
What problems may appear in the future?
If a broker saw you are winning him, he would protect your trade and would make your trade conditions very uncomfortable. Than you will see errors in the MT4 journal:
Error # 129 – ERR_INVALID_PRICE – Invalid price.
Error # 136 ERR_OFF_QUOTES – Off quotes.
Error # 138 ERR_REQUOTE -Requote.
If you trade in big volumes, you have to talk to your broker and he might copy you to the bank or you can order a Bridge to the other big broker. If your trade doesn’t have big volumes, look for another broker and break your deposit into few parts and few brokers.
To be continued…