Simple yet effective Scalping EA – Does it Exist?

For a while now I have been looking for an effective scalping EA that can produce around 10% + profit per month on an account (I don’t think this is unreasonable) but does not have huge drawdown’s and can be used on a starting account of between 500 - 1000

An EA would be a good start for me as I am unable to trade during the day due to my 9-5. Also when looking at a lot of scalping EA’s (most are rubbish and don’t work anyway) I notice people have tested them on 5k & 10k accounts, in theory that is ok but unless you have that amount of money to start with what’s the point.

Does such an EA exist? If so would anyone care to share or point me in the right direction?

Thanks for the help

CarpeUK

You say the EA's you have tested before don't work very well ...

and what is going to happen if you use their BUY signals to SELL and vice versa?

HUH?

If I was trading manually that would be a possibility but as the EA are locked down and I am no programmer I cannot change anything. It’s an interesting thought but not one I would be looking to peruse.

I know the Holy Grail does not exist but there must be a scalping Ea out there that works as it should without blowing up your account

It's far easier to find an EA which is more profitable using long-term trades (4h+) than it is for a scalping EA. Do you know why?

Plenty of scalping opportunities tend to happen during periods of high volatility. This generally happens around news time. Brokers know this, so they try to prevent scalpers from taking advantage of that opportunity by:

1. Increasing the spread
2. Running the price up and down
3. Denying a trade (not confirmed)

If you REALLY want to use a scalping EA, you need to get an interbank account for it to be any useful to you.

For a while now I have been looking for an effective scalping EA that can produce around 10% + profit per month on an account (I don’t think this is unreasonable)

120% per year? not unreasonable..I do not know anybody or any EA that can do that consistently year-in & year-out.


but does not have huge drawdown’s and can be used on a starting account of between 500 - 1000

An EA would be a good start for me as I am unable to trade during the day due to my 9-5.

Many say the the London open is a very good time to trade...this is not the US stock market...there are three main sessions in which the bulk of your scalping would take place in two of them. 2:00 - noon next day (est)

Also when looking at a lot of scalping EA’s (most are rubbish and don’t work anyway) I notice people have tested them on 5k & 10k accounts, in theory that is ok but unless you have that amount of money to start with what’s the point.

Does such an EA exist? If so would anyone care to share or point me in the right direction?

In my experience, this EA does not exist, if you find one please share..you would truly provide a great service as no other experienced trader would dare share such a find....that is just the way it is...even if I do not agree.

Thanks for the help

CarpeUK

Has anyone responded yet to your challenge by the way (i mean in a successfull way) ?

I've read somewhere in FXOpen forum, one old guy have a great scalping technique.

He started with USD300 and make it USD800 in 2 weeks time.
Then he not follow his own rules and make the account left USD84.

Later, he discipline himself and able to make it USD1200 from that USD84.
After that he left the forum and never comeback..not sure what happen to him.

Good thing is he left his secret there,
He is using only multiple stoch setting at M1 and scalp based on the system.
I try to bring the system here.

But he doing it manually. Perhaps can make an EA from that.

Ronald Raygun

I understand what you are saying but I have to disagree with you in regards to only scalping during periods of high volatility and news. I have tested EA scalpers that scalps the market during high, low and even side ways trading, that’s the point of a scalper it can pop in grab 5-10 pips and pop out, no matter if the market is trending, falling or even sideways. (Well in theory anyway)

I think I need to clarify what it is I am after. I know scalping can be risky as all scalpers I have seen open lots of trades a day, could be as low as 20 or as high as 60+ but lets be honest FX is risky anyway.

I am after an EA that can scalp the market for a conservative 20pips a day, lets even push the boat out and say 40-50pips a day, for a scalper this is very conservative but the more you require from a scalper the risky grows at phenomenal rate. In my experience (and I would have to say it is limited) the longer you leave a scalper running the riskier it becomes because it continues to open trades no matter what the situation is on the market so winning a conservative 20-50pips a day for a scalper is not as risky as leaving it running 24/7.

Electric Savant,

Thanks for your post but like I said I am not looking for the holy grail and lets be honest if it existed would anyone share it, like bloody hell they would J I know London is a nice active trading session time as I live in the UK but I have to say I have had some great Asia trades over night as well.

Mr Forex 123

If you or anyone can get an EA that can do what I have clarified in this post and works I would be willing to run it and test it as required.

Keep the replies and suggestions coming guys and thanks

CarpeUK

I cannot stress this enough:

Scalping is a quick way to ruin for almost all traders.

Let me explain why I say this, from my own experience.

When I first started trading, it was not unusual for me to be involved in roughly 15-20 trades a day. This would certainly be called "scalping" in anyone's book. Do you know what I found?

I found that it only took a few losers to wipe out your winners. Think of this: If you are paying a spread of 3 pips, each loser will be loss + 3 pips, and winners will be win - 3 pips. You get hurt in the costs of the transactions. I literally had days where I would be right on 8 out of 10 trades, and it turned out I ended up break even, give or take 5 pips. (an example.)

On the other hand, I now play 4 hour and daily bars. It's not that out of the ordinary for me to have a 150 pip stop loss. At that point, transaction costs are the least of my issues.

I only risk a certain amount, 1%. (This will be different for each trader.) I do this so I can stay in the game. So when I am in a trade that is say 45 pips down.....you are already out of it for a loss while I am still letting it breathe. It took me forever to learn this. (Probably because it was so simple.)

I also started to think about why I got into trading. It was for money. Money = Freedom. Freedom is not sitting in front of a monitor all day. (Which is exactly what scalping will get you.)

As far as an automated strategy, I wouldn't trust them. For example, how is it ever going to know that Bernanke is giving a speech in 5 minutes to Congress as it's getting a "buy" signal? It doesn't and therefore isn't reliable.

I am sure there are people that make money on automatic strategy.....but not those kinds of returns.

By the way, for your info:

A $1000 account at 10% a month works out to $304,481.60 in 5 years.
In 10 years, it's now $ 92.7 million.

Not very realistic in my humble opinion. However, it does show one of the most important concepts you need to learn: compound interest.

This is why it's not necessary to get 10% every month. Wouldn't you be happy with "only" 10 million? I would.

Good luck,
Clockwork