You've outlined the challenges U.S. traders might face with scalping strategies due to regulations and market conditions. It's important for anyone considering this strategy to be aware of these factors, as they could significantly affect profitability and execution.
The main condition for opening trades is avoiding high-impact news events. For example, when there’s high-impact news, like now, it’s hard to distinguish whether the momentum I’m seeing (e.g., in EUCAD, which appears to be trending upwards) is genuine or influenced by the news. Therefore, I don’t trade during or shortly after news releases. I outlined one other condition in an earlier post (and I was accused of leaking trading secret). please find it here Additionally, I’ve developed a personal momentum indicator to aid my decisions. However, I attribute my current success more to experience—over 10 years of studying the market. Through this, I’ve identified certain currency pairs I avoid trading because their movements are too difficult for me to predict. These include USDJPY, CADJPY, AUDJPY, among others. I can say all JPY pairs.
Hi @SmithFX. The main issue is that most people are asleep whenever I post these signals, and for those who are awake, they are at work. It’s possible to observe the FIFO rule by ensuring that I close the first trade I open. The main issues, however, are leverage caps and high transaction costs. Is it feasible for someone familiar with FXBlue (which is simply a trade copier) or any other trade copier to open a demo account? I am open to this idea, as we can then compare the performance between my demo account and their account, given that trades can be copied automatically and at no cost. For those in America using American-based brokers, such as Forex.com (en-US), this is the only way to effectively evaluate the strategy without risking real money. If anyone is interested I am ready to help.
You can see that it was a false momentum caused by high-impact news. My strategy focuses on trying to predict what is causing a given market movement. Let me adjust the colors so you can see it more clearly.
Thanks for sharing that! I appreciate the insight into the challenges for U.S. traders. It’s clear that factors like FIFO, leverage caps, and transaction costs can hinder scalping strategies. I’m curious to hear more about your specific approach and how it addresses these hurdles!
How do you plan to ensure that the demo account replicates real market conditions closely enough to provide an accurate comparison of your strategy's performance, especially considering differences in execution speed or broker settings?
Actually, it’s a strategy I use. Just do this—use the 1-minute or 5-minute charts, and you’ll notice a pattern. For instance, if it’s 11:00 and I open a trade at 11:01, check the price movement on the 1-minute or 5-minute charts between 10:00 and 11:00. You’ll start to notice something, but it’s hard to put into words—you kind of have to see it for yourself.
That's a great question! I think the first step is to publish my demo results on Myfxbook to provide transparency. The best trade copier I know of is FXBlue, so you’ll have the opportunity to compare my performance with your demo account performance directly. From there, we can identify any discrepancies and figure out what adjustments need to be made. I’m aiming to publish my results before Friday this week, so stay tuned!