Scalping is tedious, tiring and difficult. The chances of you losing often is there with scalping. The only advantage is that you can make 40-50 pips in 30-60 minutes. We don’t believe in scalping. But if you still want to be a scalper you can take a look at this Hidden Scalping Code indicator that recently came to our attention. Take a look at the screenshot below.
You can see in the above screenshot, it made 4 trades on EURJPY M5 timeframe and all 4 trades were winners making a total of 141 pips. Hidden Scalping Code indicator has been developed for M1 and M5 timeframes. You can download it and test it on your demo account. If you can consistently make 50 pips daily, you can double your account every month. Did you read the post on how to use regression splines in day trading? Predicting price is a difficult thing. If you could predict price with an accuracy of 80% you would be a rich man. Uptil now no algorithm can predict price with 80% accuracy.
Trading is a game. How can we win this game when we cannot accurately predict price? In this game you risk a small amount in the hope of making a big return. This is what we do. We risk 10-15 pips and try to make 100-150 pips every time. This ensures that our trades have an average reward/risk ratio of 10:1. So even if you lose 2-3 trades you can survive it. On the other hand suppose you risk 50 pips to make 50 pips. This is a trade with a reward/risk ratio of 1:1. If you lose one single trade, you lose 50 pips and your account suffers a big drawdown. So always focus on reward to risk. Your risk should be as small as possible. Try to catch a big move in the market with a small risk. Read this post in which we explain how to make 200 pips with a 20 pip stop loss.
Don’t believe in the above screenshot in which Hidden Scalping Code Indicator is shown to make 141 pips. Do your own testing. What this means is test this indicator on the demo account. If you want to test it on live account, choose 0.01 as position size. Note what is the average stop loss size with this indicator and what is the average pips that this indicator makes. If the reward to risk ratio is good, then this indicator is good. Otherwise this is not a good indicator. Suppose it makes 30 pips with a 10 pip stop loss. In this case the average reward to risk is 3:1 which is something acceptable. What this means is that you can lose 3 trades in a row and win the 4th trade to recover all the loss. Now suppose this indicator makes 30 pips with 30 pip stop loss. In this case this is not a good indicator. So do your testing. We haven’t don’t any testing on this indicator so we don’t recommend anything. Watch this video that shows a $9500 simple price action trade.
If you want to be a successful trader then you should have a strategy that wins at least 80% of the time consistently. If you win 2-3 trades and then lose the next 2-3 trades, you will reach nowhere. What you need to understand is that you need a strategy or a system that can make you pips on a consistently basis. Suppose you have a strategy that wins 80% of the time. Your average stop loss is 10 pips and your average winsize is 50 pips. In this case your average reward to risk is 5:1 which is quite satisfactory. 80% winrate means in 10 trades you will win 8 trades on average and lose 2 trades on average. Losign 2 trades means you lose 20 pips. Winning 8 trades means you make 400 pips. So you make net 380 pips which is not bad. This is how you make your strategy. Read the post in which we explain the Million Dollar Trading Challenge Plan.
Once you have made your trading plan, you should test your strategy thoroughly. Without that you will keep on losing. Don’t be afraid of testing this Hidden Scalping Code Indicator. Maybe it works. Maybe it doesn’t work. Only by testing it on your demo account, you can know the truth. If it doesn’t work, don’t worry. Look for a new system. Test that system. If it doesn’t work, don’t despair and give up. Find another system. After 4-5 systems, you will definitely find a system that will work for you. Patience and discipline are required a lot in trading. To tell you the truth you will never find a holy grail system. You will have learn how to read candlesticks and price action. If you learn that then you will never need any indicator. Watch this documentary on the life of a millionaire forex trader. This documentary will teach you how successful trader do their trading in real life.