High Frequency Forex Trading - does it work?

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Look at all those robot $ 100 Forex promising 90 +% accuracy. You do what you have shown cal scaling. It sounds great in theory but in real life just does not work with foreign currency. Why?

High Frequency Trading is a losing proposition, except for financial institutions, stock exchanges seats now wants to use bet and temporary mis-pricing (arbitrage), and not direct.

Brokers love and suppress high-frequency trading just to generate commissions that theydo not care if their customers until they lose to generate commissions. Forex brokers usually earn their money by charging merchants 2 pips + input and output. So now a trade, you are at least 4 pips. If your goal is 5 pips ... You are lucky to have a pip profit. What about losses? So you are planning to set up a 5 pips are lost. Now add 4 pips broker commissions and slippage. And you're looking at almost 10 pips on a loser.

If you are still intent on finding thatForex scalping system difficult, here are some suggestions:

1. It must be automated. If you do, several trades a day, it is necessary that these trades to go to market at the right time at the right price. To do this manually you would on a major disadvantage.

2. Back to the first test. And only go forward with the trade, a strategy, if you test probability 'of at least 60/40 in your favor in the back. The reason is that the bid ask spread will affect the shareThe success and the strategy must be profitable to be after a price

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

win-loss-fail ratio = loss ratio x profitLim success ratio limit

For example - If your strategy to win 6 times out of 10. It 'been a success-fail ratio of 06:04 in your favor. If the bid-ask spread is 1 pip, and then set the take profit and stop loss limits to 7 points, loss of profit limit ratio limit 6: 8 against you. It is6: 8 because of the difference between the limits of 14, but due to a spread of 1 pip, pip loss will have a closer and further from 1 pip profit and not be positioned at 7:07 (ie 50: 50).

6 limit the success factors of profit x 6 = 36, 4 32 x 8 = limit the loss of failure. Final profit / loss ratio is 36:32 (ie 9: 8 in your favor). Their strategy is probabilistic success.

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

Success-fail ratio = 52:48 (ie 13:12)
Profit-loss ratio limit limit = 6: 8

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

3) You have low fees and full pass-through ECN Broker. The Pip spread for the purchase and sale.

You gave up awfully fast, but the decision was right ... 99% of people in "High Frequency Trading" does not

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