Why scalping is not allowed

Finding the best Forex software trading must face this important topic: is scalping allowed or not allowed in the Forex Market.  Be aware that this is a very polemic subject and there are many different opinions.

As you know scalping is open a trade and then closing it in just a few seconds or minutes, gaining 2-3 pips, it usually involves opening and closing a position within seconds or minutes to gain a few pips of profit.

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About Brokers and Scalping
The point here is if your broker will accept scalping or not, because all brokers are constantly under attack by some people who really know what they are doing and part of the job is try to block some of this as “spread scalping” as it does indeed eat into the brokers profits and in a very big way especially when it is used in the 100 lot order sizes. And this is the real reason everyone else has to get restricted from doing any kind of narrow scalping. So an important question you must answer is if the best Forex software trading should allow or not scalping.

If you want to use the best Forex software trading take note that there are some REALLY good programmers out there who are of true hacker quality and there are some guys out there who have some substantial money to invest to hire these guys. And you can be sure that they are not going to be selling these programs to the public and they don’t want anyone to know what they are doing.

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An example of how scalping works
The following is an example of the premise of how “spread scalping” system works:

Although all brokers advertise a fixed spread, the truth is that these spreads are in place only “most of the time”. Everyone who has traded for any length of time knows that during some news releases the spread can go way out of line.

Haven’t heard of a broker yet where this doesn’t happen. And believe it or not the spreads will vary to one degree or another almost all of the time. If the ask moves before the bid or the bid moves before the ask you have a variance.

The spread variance is actually kind of a good indicator of direction. If the Ask starts to move out ahead of the bid then you know that the price is going to head up. So, if the spread “norm” is say 3 and you detect a 5 spread where the ask has moved but the bid has not then you initiate a Buy. A contraction of the spread will create a momentum to move the bid above the ask in fairly short order. So, your take profit is the bid – the order price = your profit target and this initiates your order close function.

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Important information!
In summary, although there is not the best Forex software trading, it is possible to find the best Forex software trading that meet your expectations, but that software should not allow scalping. To learn more about this important point check my main article Best Forex Software Trading

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How to choose the best Forex software trading that fits your trading needs

In this article I will describe the principal characteristics that the best Forex software trading should have to make trades in the Forex market.  It should be understood that “the best” depends on the different criteria used to qualify, so one software can be the best for a certain type of criteria and could not be the best if you change the key selection points.

If you need to find genuinely high quality, best Forex software trading check out carefully the following analysis.

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• Internet-Based or Desktop-Based Software

With Internet versions, you can check your Forex account from any computer in any location. Also, you won’t have to worry about maintenance issues. And, there’s no software to download to your computer. The main disadvantage to using Internet-based systems is you’re at the mercy of your Internet connection speed. If you have a slow connection, the system will not work well.

The other type of automated Forex trading system is desktop-based software, which must be downloaded to your computer.   Trading Platform Coverage and Multicurrency  Check to be sure your software will cover the brokerage and trading activities you need. This ensures you’ll be able to do all the trading you need through only one system. Also, be sure the system covers multiple currencies so that any currency can serve as the general currency.  Safe and reliable your automated best Forex software trading should have ample backup systems and be reliable in operation. You should be able to depend on the system to be up and running without event each day and to make trades 24 hours a day, 7 days a week.

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• Experience vs. New Products

Do you like high risk? Well then you maybe for you the best Forex software trading a new robot in the market, without reliable records.  Be warned that many, but many new robots with hype profit promises will disappear in the short term, so be careful.

A good advice to reduce risk is to choose a product that can show years of trading experience behind it. 7 years or more can be a good line to start.

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• Proven Results

Software that’s proven to work, so avoid robots put together by amateur programmers in a week, ask for software coded by an expert developer.

The best Forex software trading that fit your need should offer REAL and PROVEN results.

By proof, I don’t just mean back-test results that can be easily manipulated because anyone with reasonable trading experience can pump up the risk settings to the max on a demo account and produce one of those back-tests, I mean genuine trading results when the robot is on the default settings.  Proof of live account success – real money results!

Ask these types of questions:

- What account size was needed to achieve results like that?

- How many ‘pips’ those winning trades are making

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Pip = ‘percentage in point’, the smallest price unit of a currency

- This live trading shows ALL trades or just broken segments of a few profitable trades?

The important thing to note is that there will be a FULL summary and equity chart at the bottom of the page.  If the summary is missing, or the equity chart does NOT look complete then it is NOT a live trading summary.

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• Testimonials and Reviews

Real satisfied customers testimonials and independent reviews (you can find in Google) are extremely important to make the correct decision.

In other articles in this blog you will find other articles with different key points that should consider while choosing the best Forex software trading for your needs, and also you can find a excellent web site that will help you at the end of our main page, just click in this link: Best Forex Software Trading

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