High Frequency Trading Forex - is it possible?

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Look at all these Forex robots promising $ 100 + 90% accuracy. You do what we cal micro-scale. Sounds in theory, but in real life is not easy to work with Forex. Why?

High Frequency Trading is a losing proposition, except for financial institutions, stock exchanges and want to buy seats in arbitrage to exploit temporary mispricing () rather than a directional bet.

Brokers love and Push High Frequency Trading for the Commission this generates, isno matter if their customers waste time generating commissions. Forex brokers usually earn their money by charging merchants 2 pips on the entry and exit +. So far, from a trade, there are at least 4 pips. If your goal is 5 pips ... You are lucky to get 1 pip profit. What about losses? You think you're at a loss of 5 pips. Now add 4 pips broker commissions and slippage. And you're looking at almost 10 pips on a loser.

If you're still intent to conclude thatForex scalping system difficult, here are some suggestions:

It must first be automated. If you different trades per day, it is necessary that these trades go to the market for the right moment in exactly the right price. To do this manually, you need a major disadvantage.

According to Back to the first test. And just go ahead with a trading strategy if you have a quota of at least 60/40 in your favor to test the back. The reason is that the offer is your rate of eating marginThe success and the strategy needs to be factored into this lucrative

As a simple calculation of the probability of success, I use this formula:

Profit / loss ratio = success-fail lossLimit money x money profitLim

For example - If your strategy wins six times out of 10. This is a success rate of 6:04 is not in your favor. When the bid-ask spread is one pip, and set to take your profit and stop loss limits to 7 pips, profit lossLimit money limit of 6: 8 against you. This6: 8, because the difference between the limits of 14, but due to a 1 pip spread is 1 pip closer to a loss and a pip profit and not placed on 07/07 50:50 (IE).

6 x 6 = Success profit Limit 36, 4 x 8 = 32 not lossLimit final profit / loss ratio is 36:32 (ie 9: 8 in your favor). Their strategy is successful prediction.

Here's an example where, even if you could have a successful strategy, probably notin practice -

Success-fail ratio = 52:48 (ie 13:12)
Limit the rate of profit lossLimit = 6: 8

Success 13 x 6 = 78 limit profit
12 x 8 = 96 not lossLimit
Final profit / loss ratio = 78:96 (ie 39:48) - not good!

3) You have full ECN broker fees and pass-through. NO PIP Spread on the purchase and sale.

They were terribly fast, but your decision was right ... 99% of people are at "High Frequency Trading fail"

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