Speed, accuracy, and the proper trading strategy are essential factors in scalping in the forex market. With traders adopting the use of automation tools like MetaTrader 5 (MT5), MetaConnector is used to ensure fast trades without hassle. Here are the top five scalping strategies to help you become a successful trader.
The Moving Average Crossover Strategy is an excellent way of scalping during a trending market. The short-term moving average (e.g., a 5-period MA) and long-term moving average (e.g., a 10-period MA) will be tracked on the 1-minute chart. Once the short-term moving average breaches the long-term moving average, the automated bot initiates either a buy or sell order.
The One-Candle Breakout Strategy is best applied during active trading sessions such as opening of the US market. In such cases, the highest and lowest prices should be set using the initial minutes of the trading session (5 to 15 minutes). The automated trading software then uses these levels to enter the position once the price is breached.
This mean reversion strategy employs the 5-period Exponential Moving Average (EMA) as the “mean” value of the price. The automated trading platform initiates trades when there is deviation in the price level from 5 periods EMA since it expects that the price will reverse to the mean value. Such a strategy performs well in volatile markets, capturing profit from tiny moves.
In this trading strategy, the buy or sell signals will come from the Supertrend indicator. The automated trading will be performed using MetaTrader platform connector, which makes the Supertrend strategy highly efficient. Ideally, this method works well in a situation where markets demonstrate clear trends for better accuracy of entries and exits without much intervention.
RSI and MACD indicators on low timeframes (M1/M5) determine when markets are overbought or oversold, hence initiating a trend reversal. The MT5 Bot takes counter trend trades when markets experience high volatility in trending markets.
Implementing these strategies together with MetaConnector will help you get more out of your automated trading as it enables quick and accurate executions. You will make profits whether you employ trend following or mean reversion strategies.