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Scalping by volumes

Scalping by volumes

Scalping strategies are a widespread and widely used trading method, which can achieve above-average returns even with relatively small capital.

The high popularity of scalping is primarily due to its undeniable advantages, such as holding a trading position for a maximum of a few minutes, a relatively large number of daily opportunities and, last but not least, refraining from negative swap positions, which are very unsuitable for scalping.  

Everyday Strategies - Scalping by trading volumes

Each currency pair is unique in its own way and therefore, for each individual one, today's scalping strategy must be optimized. This means that on one currency pair, for example, we will execute trading positions the moment the volume reaches 100, while on another it may be up to around 200, for example.

Scalping by Volume - CADJPY(M1 Chart)

As mentioned above, on each currency pair, the scalping strategy needs to be optimized in a certain way to bring enough trading opportunities and at the same time be tradable. On the CADJPY currency pair, therefore, the 300 level (see chart below grey horizontal line - volume indicator window) has been selected within the volumes, whereby based on its crossing in a certain minute, the next minute entry into a trading position occurs in the opposite direction, relative to the minute candle from the time of the crossing.

Example: If a buy candle was formed in the minute when the market on CADJPY exceeded the volume of 300, then subsequently short positions are entered (see chart below) or vice versa.

Scalping by volumes

Something extra:

Some traders also use this scalping strategy in the opposite way by waiting for the volume to fall below a certain level and then entering either long or short positions depending on their tactics.

Scalping by volumes

Our strategy today achieves the best results on currency pairs when traders manage to find relatively optimal volume levels. Depending on the currency pair, the success rate of the strategy can even be in the range of a great 60-80%.

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