Scalping Forex Robots 2020 (MT4/MT5 EA)

Scalping Forex Robots 2020 (MT4/MT5 EA)

Scalping forex robots is one of the most attractive forex bots because they can bring you profit soon, however, they are the most sensitive ones as well and can switch from a profitable EA to a loss-making machine if you don’t run them in a suitable environment.

We will talk about those conditions later in this article but first, let’s become familiar with some of the profitable scalping bots.

Scalping Forex Robots (EA) for Meta Trader 4 & 5

Here’s a list of profitable scalping forex robots that you can run on MT4 and MT5.

I’ll add more EAs to the list whenever I find scalping robots that have the necessary qualifications for this table.

Forex RobotReviewGainDrawdownPFDaysTradesChart
The Wave ScalperSee Review106.72%12.63%2.35275151
Auto News TraderSee Review1736.2%6.9%10.39852588
Happy GoldSee Review40000%16%n/a23811512
Happy NewsComing...78.1%12.9%1.7214478
Best Scalper (2)Coming...226.09%30.25%1.41367573

What Is Scalping Forex Robot?

A scalping forex robot is a type of software that opens and closes short period trades and aims for a few pips, particularly less than 10 pips.

Most of the time, trades last for a few seconds and the scalping robot tries to gain 3 to 6 pips, however, sometimes the scalper targets larger amounts especially in volatile situations such as important news events.

Although scalping forex robots usually try to catch a few pips and get out of trades ASAP there are some other scalping robots that use methods such as trailing stop in order to squeeze the market as much as possible so they stay in trades longer.

In this type of scalping forex robots, you can see some trades with 3 to 6 pips that are closed lower than 5 minutes as well as some trades with around 20 to 30 pips that last for half an hour or even longer.

On the other hand, there’s a third type of scalper robots that have a longer time period as well but it’s because they have large stop losses. They aim for a few pips but since their SLs are rather large and some trades may move to the direction of their SLs first, therefore, the lengths of trades are longer than usual.

In this kind of scalping robots, you see small TPs such as 3 to 6 pips but their stop losses are several times larger and they are something like 20 to 30 pips.

Are Scalping Forex Robots Profitable?

Scalping forex robots like other types of forex robots or EAs can be both profitable and lossmaking, however, they are more susceptible to external factors such as brokers’ conditions.

For instance, a swing robot that has large limitations (SL and TP) isn’t affected by the spreads or execution speed of brokers but one pip extra spread or few tenths of seconds can have a huge impact on a scalping robot’s results.

Those factors can literally turn a profitable scalping forex robot into a fruitless one so it’s crucial to pay close attention to them.

So now let’s see how we can provide the best conditions for our scalping forex robots.

Best Conditions for Forex Scalping Robots

As we saw in the previous section, there are some factors that are not related to the strategy of a scalping robot or the way that an EA trades but they’re connected to the trading environment where the robot is executed in.

All EA developers know them very well so they have their own suggestions for the conditions that work the best for their scalping forex EA.

However, their suggestions may not always be the best ones because they may benefit from what they suggest. We’ll talk more about this later in this article but first let’s meet those factors.

Low Spread Forex Broker

Without a doubt running a scalping robot on a low spread broker can have a determining effect on its results. A scalping EA is supposed to get a few pips so how many pips it can afford to pay as spread.

Let’s say our EA has a TP and SL of 5 pips on eurusd. If we’re going to pay 2 pips as spread, we’re far behind in the first place. The EA needs to have a very good win rate in order to be profitable in this situation.

If the creator of the EA has tested it with a broker that has let’s say 1 pip spread and our broker gives us 2 pips as the spread of eurusd, the EA becomes unprofitable even if the win rate of its system is 60%.

So we definitely need a broker with the lowest spreads.

First off, we need a broker that has ECN type of accounts. ECN accounts have very low spreads but a commission is charged as well, however, the sum of spread + commission is still lower than other types of accounts.

Most of the time the vendor of a forex robot suggests a broker which is not always the best option. The reason is if you register with the suggested broker using their IB code or link, they’ll earn money every time you trade.

It’s not a bad thing by itself because it doesn’t affect your account and you don’t pay extra fees but brokers pay their IBs from their own income which is either a part of spreads or commissions.

It’s even to the benefit of you in some cases because some sellers give you a discount if you register under their IB code. Although they’re paid less at first they’ll be compensated by their brokers when your EA starts trading.

The problem is whether the suggested brokers are the best choice or you can find a better broker.

Well, we did a study on lots of brokers in the industry and compared them with each other. For finding the best broker for scalping you can read the article here.

If you’re from the US, you can find your broker from the best offshore forex brokers.

Fast execution Brokers

Another factor that is important when it comes to a suitable broker for scalping forex robots is execution speed.

Sometimes, the entry or exit point of a scalping EA is too sensitive and if your broker has a delay in executing your orders, the results of trades change completely, therefore, you need a broker with fast execution speed.

Now, how you can find out about the execution speed of brokers. Well, we did another study on the MT4 execution speed of forex brokers to figure that out and you can find it here.

However, we took this factor into account in the scalping forex brokers article that we mentioned in the previous section.

Low Slippage Brokers

Slippage happens when the market is either low liquid or highly volatile.

When the market is low liquid it means there aren’t enough buyers and sellers in it so when you open a trade at a specific price, your broker may have difficulty to find the price of your order so it provides you with another price which is different from what you’ve ordered.

For example, your scalping EA sends a buy order at 1.1121 but there’s no one to sell at that price and the closest price is 1.1123 so the order opens at that price which is 2 pips against your favor. This widening is called slippage or in this case negative slippage.

It’s not always against you and sometimes the slippage is in your favor which is called positive slippage that mostly happens when the market is volatile.

On some occasions such as important news events, the market becomes volatile and moves fast so the exact price that your scalping robot orders is hard to deliver, therefore, your forex broker opens the order at a different price either in your favor or against it.

As a result, if a scalping forex robot is a news trading one or even trades sometimes on the important news events, you need to pick a broker that has the lowest slippage on those occasions.

You can find our study about low slippage forex brokers here.

High Quality VPS

The next factor that is crucial to the success of scalping forex robots in particular and any type of EAs in general is having a high-quality connection.

Not only does it provide a stable connection but it also decreases your latency to your broker and consequently increases the execution speed so your orders are executed faster.

VPS is vital for all types of forex robots in general because first, you don’t need to keep your trading platform open all the time, and second, any disconnection may cause a problem with the performance of EAs.

It’s even more important when we run a scalping forex EA because there are additional probable problems that may happen such as slippage which can come from disconnection or slow execution speed.

All in all, VPS should be a fundamental part of your automated trading that you shouldn’t avoid in any way. It doesn’t cost you much but it has a tremendous impact on the quality of algo trading.

If you want to know more about VPS and find the best forex VPS, you can read the relevant article from here.

The Bottom Line

Scalping forex robots can bring you profits sooner than other bots, however, they can deplete your account fast if they are unprofitable so you’d better choose the scalping EAs that have lower drawdown. That way you can control and manage risk if things go south.

You also need to run scalping EAs in a high-standard condition which means picking a broker that is the best option for scalping and also choose an excellent VPS.

I tried to list some of the profitable scalping forex robots but you can add to the list by commenting below. The EAs will be added to the table if they have the required standard.

david

I hope you enjoyed this post. My name is David and I've been in Forex Market since 2006. I created this site to convey my experience and try to help forex traders to make better decisions. Share this post if you liked it and let me know what you think about it in the comment section.

Leave a Reply