The Definitive Guide to Scalping

Trend scalp
- Trend scalp indicator is on this post.
- Trend scalp_v1 indicator is on this post. This is MTF version with ability to plot the color levels

Trend Scalp Hacolt trading system is on this post.

Scalping thread is here.
The Definitive Guide to Scalping thread is here.

Talking Points

• Risk management should be considered prior to entering into a trade
• Never risk more that 1% of your balance on any single trade idea
• Stop trading if losses amount to more than 5% in one trading day

The final lesson scalpers must learn is probably the most important, risk management. The decision on how to manage risk can have a great impact on the bottom line of your account than deciding where your entry orders should go or even what time frame to trade on.

GBPCAD Early Morning Breakout




Stop Placement

The first key to risk management is to identify a key level of support and resistance. This can be done through a variety of methods mentioned in the 4th installment of the Definitive Guide to Forex Scalping. Once found, regardless if you are trading retracements, breakouts, or ranges will have a definitive area to place your stop. In the event you are looking to buy a currency pair, risk should be managed underneath a line of support. Conversely, if a trader is selling a currency pair, risk should be managed above a level of resistance.

Traders should also consider how close to these lines of support and resistance to place their stop. Aggressive traders can set their stop very close to these values to close losing positions as quickly as possible. This is opposed to a more conservative approach where stops would be placed further away to allow positions more space to breath.

When it comes to placing stops it is important to remember that each traders strategy and risk tolerances will be different! But regardless of your choices, always scalp with a stop. Now let’s look at a few other rules scalpers should remember.


The 1% Rule

While no one wants to experience a loss on their account, it is an inevitable part of scalping. Because of this, it is always important to have a plan of action to manage risk before entering into a trade. While placing a stop is important, traders should also consider the 1% rule. This means that traders should never risk more than 1% of their account balance on any one trading idea. That means using the math above, if you are trading a $10,000 account you should never risk more than $100 on any one positions.

The 1% rule can also be coupled with a favorable risk reward ratio. Using a 1:2 setting, this means if we risk 1% in the event of a loss, at minimum we should look to close our trades out for a 2% profit. This would translate into a $200 profit on a $10,000 account balance. Now that you are familiar with the 1% rule, let’s look at our next risk management tip.


The 5% Rule

While no one wants to lose 1% of their account balance on any one trade idea, it is also beneficial to review the maximum exposure you have for your TOTAL account balance. The 5% rule reminds scalpers to never have more than 5% of their total account balance at risk across all trades. I also recommend this as a final cutoff point for trading. Meaning if you lose more than 5% in one day, it is probably best to call it quits and look to pick up trading again when the market is more favorable.

To put this into perspective a scalper with a starting balance of $10,000 on 5 consecutive open positions, at 1% risk per trade , your balance would still have $9500 remaining at the end of the day. This is critical because even on your worst day, you can still come back tomorrow and pick up your trading strategy! Also this rule can prevent revenge trading and accruing even more losses.




---Written by Walker England, Trading Instructor


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This is template for M5 which I used to estimate the market condition on the way about the following: will I trade today by scalping, or not.
We can use this template for trading as well.

Indicators and template are attached.

FXCM and DailyFX are happy to announce the winners of our first $10,000 Monthly Challenge for the 2016 trading year! January’s $10,000 contest proved to be one of the most exciting yet with two close finishes. Only one percentage point separated our second (Georgi C.) and third (Jessica F.) place finishers as well as our fourth and fifth place contestants. Our winner Phong V. however stood out among a field of tens of thousands of contestants to become our new Challenge winner! Congratulations to all of our winners and participants for the month of January!




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Premium section link:

Uni Absolute Scalping trading system is on this page.

Premium section story: TickScalper EA

This week:

- EURUSD : 26 pips, or 2.60 dollars
- USDCHF : 29 pips, or 6.53 dollars

The EUR/USD continues to trade lower despite the release of lackluster NFP figures. Today’s NFP release was expected at +175k, and was released at +161k an actual. The big surprise on the day was a revision of September’s employment figures to 191k. This revision was up from the reported 156K, causing US Dollar based pairs to rally.

Technically, the EUR/USD may be seen below being rejected from a 50% Fibonacci retracement value at 1.1108. This line has been acting as resistance now for three consecutive sessions, and is measured by taking the distance between the August 18th high at 1.1366 and the current October low of 1.0850. If prices continue to trade below this value, traders may see this rejection as the resumption of an ongoing 4th quarter downtrend. However if prices can break above this point, it may solidify a broader EUR/USD retracement.

EUR/USD, Daily

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The EUR/USD has started Mondays trading pushing to new 2017 highs at 1.0754. With today’s rally, the EUR/USD has now risen as much as 414 pips from the current 2017 low at 1.0340. Technically the pair remains bullish in the short term, as the EUR/USD remains trading above its 10 day EMA (exponential moving average). This line is currently acting as short-term support for the pair and found at 1.0647.

On a longer-term basis, the EUR/USD is still arguably in a downtrend as the pair trades below its 200-day MVA (Simple Moving Average). While the 200-day average at 1.1022 remains a critical point of resistance, traders will next look for the EUR/USD to clear the December 8 high at 1.0873. Failure to trade beyond this point would help classify this short-term bull run as a retracement in an otherwise downtrend.

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Looking for a breakout in all the wrong the places

Trading last year’s headlines today is comforting but ineffective

Do not ‘set it and forgetit,' stay nimble and keep checking the market’s vital signs to manage trades

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Table of Contents

• Introduction
• Changes made since the release of previous version
• Overview of the CPanel graphics library
• Synchronizing the tick stream with the order book
• CGraphic Basics
• Integration of CGraphic with the CPanel library
• Installation. Performance in dynamics. Comparative characteristics of Market Depth features
• Conclusion

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