Home > Forex > Scalping again… What to do, really?

Scalping again… What to do, really?

May 3rd, 2010

I’ve let my guard down again, allowing scalpers to trade during chaotic markets. Basically all my scalpers have had a really hard time the last two weeks (of course not every night, but enough). There have been a lot of drifting in prices during the usually range bound fluctuations in the Asian session which have triggered stoplosses. Usually the price actually have recovered in time for London open, but that doesn’t matter of course if the stoploss have been activated.

I’m thinking about implementing a set of filters in order to weed out bad trading days for the scalpers. I think that it should be fairly easy to set rules for maximum movement during the day and prior days to avoid too crazy markets or trending ones. I found one article about the same idea(s), but they haven’t automated the process or even detailed it very much I think. What I’m thinking of is a EA that evaluates current conditions at a set time (say 19.00 GMT) and emails me if the conditions are right for scalping. If I want to act on it I log in to my VPS and start the MT4 sessions with scalpers loaded. It will be a semi-automatic approach and it will require a more active stance from me, but I think it might be very worthwhile. The EA will only be able to sort out the bad days to trade in chaotic markets thou, I don’t expect it to be able to catch the drifting in prices.

This week I will trade with reduced risk for all scalpers Monday and Tuesday and then turn everything off until next week. NFP is released on Friday and that usually means unpredictable movement and much more volatility.

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