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Scalp Long and Short

This Trading functionality is intended to be used as an alternative to Brackets Orders.

What it does?

It places a bracket of orders (so entry order + target + stop) using the previous bar range high to low as a defiinition for the Position Sizing.

The Scalp Long functionality requires a “Max Risk Trade Setup”.

This means the it is mandatory to define the max amount of currency the stop loss could be.

For this kind of semi – automated trading strategy the followin happens

In case of LONG SCALP POSITION:

  • Define risk (say 100$)
  • Previous bar High to Low range in currency (saay 40$)
  • Scalp Long will Place two lots BUY STOP and the previous bar’s high+ 1 tick
  • 2 lots SELL STOP at the previous bar’s low minus 1 tick (so total risk is < of 100$)
  • 2 lots SELL LIMIT as a target at a 1:1 risk to reward

The opposite for short scalp Trades

Target and stop can be adjusted at any time according to market activity.

It’s crucial to keep the stoploss as it is to avoid extra risk exposure.

All Target and Stop Orders are linked as OCO

This technique is extremely useful to keep risk under control levering the position with the right use of the position sizing.

scalp trading TickerExplorer

During certain time and because of fast markets and the orders type used (STOP ENTRY Orders) the entries could be rejected is the price is already in a not allowed Stop Price.

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