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need scalping advices

Discussion in 'Beginners Bootcamp' started by gognen, Apr 26, 2012.

  1. gognen

    gognen Private

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    Hi,
    I am demo trading over 1 year till now and still doing good on a scalping system that brings me an average of 20 pips (0.00200) daily. This strategy made me profits of almost $45000 yearly.
    What do you think when I turn live trading with this scalping method (working on a 5M-15M chart and executing 3-5 trades per day from Monday to Thursday and sometimes Friday, but very rare, keeping a position open for 3-30 minutes), any recommendations?

    P.S. I have seen brokers that offer $100 min ECN account opening. Is it possible?
     
  2. Pharaoh

    Pharaoh Colonel

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    I've seen ECN brokers that also offer market maker accounts in the $100 range. So far, I haven't seen a true ECN account that small, but I may have missed one.

    First, make sure the broker isn't rated as scam - there's at least one scam broker out there claiming to be ECN because their trades are processed "electronically".

    Second, contact any potential broker and have them point you to exactly where they say that the welcome scalping in their trading terms. A true ECN broker should welcome scalping, but there are other "ECN, except when it's inconvenient so we're not quite ECN" brokers out there.

    Third, if you find an acceptable broker, try to skip any bonuses at first. Those usually have all sorts of strings attached and can cause issues making withdrawals. What you want to do is trade for a few weeks to see if your system is profitable on their live server and then try to withdraw some money and see if they give you any issues or not.
     
  3. Romeo

    Romeo Sergeant

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    On what spread was your strategy working?

    On the live account, there will be some slippage and the execution will not be so fast as you are used to it on the demo. It is very frustrating to get re-quote after re-quote, when you are trying to grab a couple of pips and ending up with a lost trade.
     
  4. gognen

    gognen Private

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    Variable spread, 0.3-1.9 on EUR/USD.
    Any advice on good brokerage with smooth scalping possibility?
     
  5. TadS

    TadS Private

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    An ECN with fixed spreads might be the way to go for you. If you have a successful scalping strategy it would be nice not to have to worry about widening spreads. I would definitely look into ECNS before diving into other brokers.
     
  6. Pharaoh

    Pharaoh Colonel

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    An ECN with fixed spreads isn't a real ECN. By its very nature, being truly connected to any sort of real liquidity means that real spread variations will happen.
     
  7. willforex

    willforex Corporal

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    Always start with a mini account to test your strategy. There are good brokers like Hotforex and Gallant capital for scalping with lower spreads. Check FPA broker reviews section for more info.
     
  8. Rambo35

    Rambo35 Corporal

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    Every true ECN broker I came across had a min deposit of $1000.
     
  9. henyo

    henyo Master Sergeant

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    have you ever tried trading a live account before, I dont wana sound to negative but there are small differences between live and demo, it terms of execution, slippage, volumes and other stuff. so try to take it easy with a small deposit to test out your strategy, it sounds good, 20 pips a day is ok for starters, but try to keep it on a smaller lot size at first to test things and how it might work, i have seen many traders having trouble with scalping strategies, usuallly i suggest swings or position trades coz its a lot safer and work well in the long run, tho it has less action :D start small with brokers with good reviews here at fpa such as hotforex, and try out the strategy for a couple of months and see how it works on live, i wish you the best of luck :) let us know how it works out :D
     
  10. FringFX

    FringFX Sergeant

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    can't really say "less action" happens in swing or position trades. in fact, bigger moves happen in the latter.
    I know a few such traders who perform better than scalpers.
     

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