Last updated: September 26, 2022

What Is The Scalper Expert Advisor?

0  comments

  • Home
  • /
  • What Is The Scalper Expert Advisor?

What Is The Scalper Expert Advisor?

Understanding the scalper expert advisor requires familiarity with a common trading concept known as scalping.

In this article, I've gone through what scalping is, what the scalper expert advisor is and how much value it can add to your trades.

What Is The Scalper Expert Advisor- Scalper Expert Advisor

What is Scalping in trading?

Scalping is a specific trading style that involves making quick profits from small changes in prices. When you are scalping, you sell these off very quickly so you can generate a little profit for yourself.

Scalping is a strategy where you make a high volume of trades that yield a small profit. However, like any such trading trick, this also requires some expertise.

The trader should know when to sell off their securities and not wait for the price to go even higher. Because if they don't, the price also has a chance of dropping if they wait too long before selling the security.

The trader needs to have a rigorous exit strategy. Scalping is a risky trick, and you can also suffer significant losses because of the volume you're trading in. Also, even one loss can potentially eliminate all of the profits that you have made thus far.

You need great tools for scalping and should have access to a direct-access broker and a live feed. You should also be informed and vigilant enough to make a lot of trades in a short amount of time.

Scalping is essentially based on the assumption that most of the securities which you are trading will show movement in prices. However, this movement is hard to predict after the first initial stage of a movement. After the initial phase, some securities might even go higher, and some might drop in price.

The intention is to make a lot of small profits, so it adds up to a considerable profit. However, using this strategy will mean that you have to increase the number of good trades instead of investing all your capital in one good trade.

This is a solid way of diversifying as well, and you won't have the risk of holding security long and having your capital assigned to it.

However, this strategy can also go in the opposite direction and leave you wondering where all your profits went.

BENEFITS OF SCALPING

  • The trader is exposed to the market for a very short time, so they have a lower risk of the market crashing or the securities prices crashing.
  • Another advantage is that smaller moves are relatively easier to obtain as opposed to significant price movements. Small price fluctuations are natural in securities.
  • The final benefit is that in general there are many small price shifts happening in the market exist every day, and even when the market is relatively quiet, the small-scale movements are still a lot which the scalpers can exploit.

How Does a Scalper Expert Advisor Work?

The primary issue with scalping is that it is difficult to distinguish between false and true signals. You need to focus on the price momentum and track the changes there.

A scalper expert advisor adopts this plan using a variety of technical indicators. Based on an analysis of moving averages, the robot first determines the global trend in price shifts.

After that, you should wait for the price to move a specific number of points behind one of the Bollinger Bands indicator's borders.

You can read about the Bollinger Band Squeeze theory and indicator on MT4  here and also about Bollinger Bands and other volatility indicators on MT4 here.

Finally, the signal that is generated is evaluated by the indicator, which determines the intensity of the momentum, and only then is a trade opened.

Bollinger Bands are also used to determine when to abandon the market when using the scalper expert advisor. When the price approaches or breaks out of the opposing Bollinger Band, the trade is closed, even if it means losing money.

The scalper expert advisor works well in any timeframe, but it is used best on M15. You also have personalized settings that are based on the risk tolerance of the investor, and you can tweak these for trades to happen automatically.

What Is The Scalper Expert Advisor- How does a Scalper advisor works

When Does the Scalper Expert Advisor Work?

Based on the study of the tick flow of bid and ask prices, the AI builds an algorithm for opening orders. As a result, the Scalper Expert Advisor is totally automatic, and no manual modifications are required. However, skilled traders have the option of intervening or trading manually.

When the price fluctuates in a specific range, that is when the scalper expert advisor performs best. The scalper expert advisor is also able to offset losses from open orders with profits from closed orders.

However, in most cases, if you don't close your orders, the market will consume all of your profit. As a result, the scalper expert advisor has certain algorithms that can minimize losses even in this scenario.

What Is The Scalper Expert Advisor- What does scalper advisor work

Scalper Expert Advisor: Recommendations

The first step is to optimize the setting according to your preferences. On brokers with low spreads, cheap commissions, and quick execution, the scalper expert adviser is suggested. 

Also, a broker with STOPLEVEL=0 (=the minimum distance on which you can place SL) will work best.

When the prerequisites are satisfied, it may really outwit the market by placing buy and sell orders.

The scalper expert advisor employs cutting-edge technology to place orders at the correct time and with the correct quantity.

The AI is intended for both novice and experienced traders: The majority of the inner parameters are concealed from the user, ensuring that even a novice will not make a mistake.

One way of testing out a scalper expert advisor you can do back-testing. See the older signals of the advisor and see how accurate they have been. You can use back-testing to evaluate any advisor and make your decision based on the accuracy of your results.

Conclusion

A scalper expert advisor is really beneficial for your trades. If the signals are accurate, the advisor can help you in making lots of money.

Use your money smartly and invest after making an informed decision.

You might also interested in Everything You Need to Know About A Cash Secured Put Screener and also have a look at What do BTO, STO, STC, BTC mean in stocks?



Tags


You may also like

Leave a Reply

Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

Get in touch

Name*
Email*
Message
0 of 350