Junichi's Scalping Classroom | Episode 10: Building a Scalping Style and Techniques Part II [Junichi FX]
Junichi FX's Profile
Junichi FX. AFX scalping trader, FX mental advisor, FX coaching, financial planner, insurance agency, and management consultant, active in various fields. Trading with a goal of 1000 pips per month through scalping centered on price action.
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※This article is a reprint/edit of an article from FX Chest攻略.com July 2019 issue. Please note that the market information described in the body may differ from the current market.
In issue 9, we introduced how to build a scalping style, how to create methods, and the way of thinking. This time as well, we will continue to explain the rules and cautions essential for building a scalping style and creating methods.
When creating methods, what you should be conscious of is "finding your strong pattern." In scalping, finding this strong pattern allows you to take the first steps toward profitable trades.
This is not something that can be done overnight; it is a process of gradually refining through failures and adjustments. In this process, what becomes important is how well the newly created method matches a particular pattern, and it is necessary to verify it against as much data as possible.
Method Verification Method
To confirm the effectiveness of a method, you use dedicated tester software (even simple tests are possible on MT4). Testers are very convenient and can automatically verify based on past price data, but caution is needed because it can become a mechanical test. Even if you develop an excellent logic on the tester, how well it performs in future markets where price and other conditions are absolutely different is a completely separate matter.
Nevertheless, the advantages of testers in scalping are many, and simply looking at charts that reflect past price movements (the process of generating candlesticks) is very educational. Repeatedly testing new techniques or adjusted techniques on randomly selected past markets will lead to new discoveries and further refinement! For newly completed methods or methods you want to try, first test them on risk-free historical data.
