Scalping Model Multi Positions

Scalping model multi positions is a simple idea of trading based on the increment of the open positions.

Time Frame 5 min, 15 min. 30 min.

Currency pairs: EUR/USD, GBP/USD, USD/JPY.

Sessions London and New York.

We recommend entering the market when group movement is determined. These variants of placing pending orders are possible:

1) Placing pending orders in close proximity to price (if your terminal allows it)

2) A less risky variant is to place orders on a breakout of a day

extreme (if it’s close) or on abreakout of some recent appropriate local extreme. Additional positions are a very important aspect of scalping. It is better to place them every 10points after the first order.

As a rule, the number of additional positions doesn’t exceed three. Of course, it is not necessary to use additional positions, but they play a very important part.So what is it? Initial entry is carried out with a small lot and you then exit with small losses if thisentry was wrong.If a trend is positive and price moves in our direction, we increase the open position. As you see,additional positions act as entry insurance against risk. It works quite well at the early stages: On theone hand, we want to make a profit but on the other hand, we don’t want to lose too much money if things go wrong.In future, when you become more experienced and start feeling the market better, you will be ableto give the first orders more weight. It is important to note that, having passed 30-40 points, themorning trend runs out and inter-session flat starts.

To illustrate the scalping model, let’s

carry out an analysis of trading (see Picture 1).Having got over the mark of 15 points of profit, we place a stop at +5 points and wait for furtherdevelopments.Having exceeded the 15 point mark, we place a trailing stop at a distance of 20 points. 45 minutesafter the beginning of the movement, we can start preparing to close orders at the slightest signs of drawback.As a result, three positions were closed on trailing stop and the fourth position was closed on break-even (+5 p.): 30 + 20 + 10 + 5 - 10 = 55 p.Scalping strategies, as well as other trading strategies, have their advantages and disadvantages. Forexample, if you use a long-term pattern of trading, you will get a lot of free time, but you havealmost no free time at use of scalping.You actually have to sweat your guts out throughout a whole trading day!On the other hand, a scalper can make much more profit for a trading day than a trader who prefersmid-term or long-term trading.