open position (0.001) for eur/usd for each 10 min if spread >=0.4 and slippage >=0.2 and close after TP reach 1pip or after 3 minute or SL reach 1.5pip

any one know how to make this strategy please ?

Sure, you can code up something like this but it will not yield profitable results.

I micro scalp all the time. However special tools are required. The target distances you specify are not sufficient to cover costs unless you use special order types. Also, in order to trade in this way, you must enter on "micro pullbacks" which requires you use specialized tools and entry strike techniques. Your win/loss ratios must exceed 90% probably.

You should specify the strategy much more completely, and think through all aspects of your trading plan, including your commission costs.

In my view, although it is certainly possible to profit from 1.5 - 3 or more very small pip moves, you cannot simply enter "retail" or without identifying "micro opportunities" through highly specialized algorithms. And with these you'll want to be using lot sizes more than micro lots in order to make the "predatory opportunity" worthwhile to you.

It is also better if you are able to identify the "pivot" or micro turning points of the market, and enter precisely, so that you can go for further target distances, such as 5 or 10 pips with lot sizes which make it worthwhile. This presupposes that you have the analytics to identify these opportunities, which is a whole problem in itself.....

Micro scalping opportunites usually exist for only a brief period of time, and 90% of the time, the opportunities are not present, even if you had software to react to them. I use a trigger system which is highly specialized and it waits for such opportunities, but such an approach is fairly sophisticated.

Also, I use pre-loaded orders, ECN orders, etc., both to strike faster, and also to get price advantage in a proportion of cases, etc. A simple Strategy module would not be able to give you those capabilities at the price/target resolutions you're anticipating.

Bottom line is that, although micro scalping is possible for ordinary retail traders, you probably do not have a realistic chance with the strategy you have sketched out.

As a minimum you need to cover your costs, and the technology involved is far more complex.

You cannot just try to "beat the spread". As a retail trader you must identify the high probability "micro setups" and then you may have a chance to profit, taking into account your retail cost structure. Not only do you need a narrow spread, but you have to wait for price to "deflect" so that the probabilities are in your favor. You cannot just enter based upon a criterion such as spread, and expect to cover your costs, and then further, to profit.

There are dozens of things you'll need to consider to make such an approach feasible. I know because I've struggled with the problem for many years before arriving at something practical.

HyperScalper

I want this strategy to modify it,can you write this strategy please

i want exactly that:
open position (0.001) if(candle of 45min for each hour) > (candle of 30min for each hour) and Difference between high and low of candle 30 and 45 min is 10pip and spread >=0.5 and slippage >=0.2

close position if TP reach 1.5pip or ST reach 2pip

can you write this strategy please ?

Hi Hyperscalper,

Nice to see someone talking strategy here! Out of curiosity what would be the best exit points for micro scalping? if you are planning to get 90% winning trades the SL must be pretty far?

Hi forexegyptian send your strategy for [email protected] I write the strategy for you.

Maybe another thread should be started, but if you've watched the movie "The Wizard of Oz", Dorothy says to the dog, Toto, "...we're not in Kansas any more."

In a nutshell, for micro scalping, you must abandon the idea of "one shot one kill" and move to Incremental Multiple Entry and Profit taking in a more "continuous" trading strategy. You are frequently adding to your position as the market price moves against you, which is what also allows you to benefit from a favorable average position or "cost basis average" position.

By taking advantage of "cost basis averaging" through entry at different price levels, and never going "all in", so that you are not over-committed, then you can avoid most of the stop loss issues of traditional trading. So the whole way of thinking about, and executing your trades is different from the traditional method of "flat, then enter, then hit target or hit stop, then flat again" approach most traders use.

To answer your question, then, more directly, a "position" becomes the aggregate result of all of the buying and selling operations that take place. A "sub-position" or "micro positiion" might have a Target distance of only a few pips. And some proportion of the overall entries are "expendable" or basically, complete or "stop out" at a loss (for that specific micro position), but it is the Aggregate of the overall Continous trading which (hopefully) is profitable. This sort of redefines the idea or how we think of the "stop loss". Some micro-positions do not go to target, but it doesn't matter because the aggregate have produced a profitable increment to the account.

Start another thread if you want to discuss Micro Scalping, if there is an appropriate place to put a discussion of strategy in this technical support forum ...

HyperScalper

hi forexegyptian - I have coded this up (only took a few minutes) as I was curious ...
and as expected it does not look like this will be profitable without additional filters.
You can PM me (fprophet) in the Dukascopy FX Community / Strategy Contest if you like.

i want this strategy to develop it,i want just this basic and i will make change on it

can you send me this strategy if you write it please ?

It's Awfully Kind Of You To Have Programmed The Strategy. I Almost Wrote It Out Myself
But I Wasn't Quite Sure About This -

slippage >=0.2

I Am Curious How You Handled It.

Thanks :)

yes

For backtesting I ignored slippage i.e. assumed enough liquidity for 100% order fill @ market price -
which in my experience is fine for the major currency pairs, so long as we aren't asking for tens of millions.

Of course limiting negative slippage is ultimately a good idea - but lets get a Strategy that works on small amounts first ....

Thanks For Explaining How You Handled It. I Am Sure ForexEgyption Must Be Very Happy With The Strategy.

Good Luck To Both Of You With Your Trading :)

can any one send me this strategy please ?

can you send me this strategy please

Slippage really isn't something you can define in advance of the actual trade. What you are probably thinking about is specifying that the trade NOT be executed if the slippage WOULD BE too much. This concept applies only to "market" type orders. Any "limit style" order is (theoretically) immune to slippage. However, a conditional order may experience Negative slippage (a worse price) if the execution is based upon conversion to a Market order at the moment of execution, but that would depend upon very specific factors inside the ECN server, how it is implemented.

Dukascopy offers at least two types of "Limit style" orders. A regular Limit is really a Conditional order which becomes a Market order when the price condition is met. But Dukascopy also offers a special order type via the JForex API which does not convert to a market order but which is a Live Bid or Offer on the ECN.

As concerns the concept of "slippage". Most would define it as your getting a less favorable price due to factors such as "delays" or anything else which gives you a worse price than you were expecting. As mentioned above with "limit style" orders, this should not occur, or occur only very infrequently.

In my Live trading, I always use the ECN order types. These place your order Live on the ECN using the API modifiers "PLACE_BID" and "PLACE_OFFER". Amazingly, I occasionally get Positive Slippage or, in other words, what is called "Price Improvement" and can (occasionally) even "make the spread".

That's the kind of Positive Slippage I Like !!! But don't think you can Buy the Bid and Sell the Offer reliably as a retail scalper. It just isn't that easy. But there are ways of greatly improving your pricing when very close scalping is the goal.

The Type of your Order is one important factor, but also the Precise Timing of your orders is also a way of obtaining a significant price advantage. For that, you need quite sophisticated computer-assisted order processing, and any trivial or simple approach just isn't good enough.

HyperScalper

Hi ForexEgyptian,

If You Haven't Done So Already, Send Your E-mail Address To Fprophet By Private Message - Good Luck :)

Hi HyperScalper,

I've Been Reading Your Description Of Your Trading Strategy, It's Quite Interesting That You Managed To Trade This Way On The Platform. Could You Tell Us More About The Average Percentage Of Drawdown (Real Reduction In Capital ) Before Is 1 Pip Reached.

Thanks :)

Mmmm... Ummmm.... say what? Let's say your round trip cost amounts to 0.7 pips, then if you trade for 1.7 pips on average you'll realize 1 pip net. Of course, this example does not represent what a real trader would seek; it just represents a fairly easily achievable minimal "one shot" trade. So on a standard lot in EURUSD you'd net about $10.00. In reality, this "one shot / one kill" strategy is not really what we're after. We really want to execute an Incremental Trading Strategy which Nets perhaps 5-10 pips on average, as part of a multi-entry / multi-exit approach to retail scalping. There are many strategies which can be used, depending upon risk tolerance and skill level, so there ain't a single answer to what is achievable Hope this helps !!! Good Trading !! HyperScalper

I Was Thinking "One Shot" But Protected By Multiple Buy And Sell Orders On Either Side - Such A System Would Increase The Drawdown Though The Profits Would Be Tremendous. Balancing The Gains And Risks Would Be The Tricky Part :)

Your Posts - Very Thought Provoking - Thanks :)