Scalping isn’t just for hedge fund hotshots or caffeine-fueled chart warriors—it’s a precision game of milliseconds, momentum, and meticulous automation. If you’re building a scalping Expert Advisor (EA), understanding the key parameters is like tuning a race car: every setting matters. Let’s break down the essentials so your EA doesn’t just trade—it thrives.
⚙️ 1. Trade Frequency and Timeframe
Scalping EAs operate on ultra-short timeframes—think M1 or M5 charts. But frequency isn’t just about speed; it’s about signal quality.
- Timeframe: M1 for ultra-aggressive scalping, M5 for slightly more breathing room.
- Max Trades per Hour: Controls how often your EA fires. Too many trades = noise. Too few = missed opportunities.
🧪 Tip: Backtest with different timeframes to find your EA’s sweet spot. Scalping isn’t one-size-fits-all.
🎯 2. Entry Logic and Filters
Your EA’s entry logic is its brain. Without filters, it’s just a trigger-happy toddler with a mouse.
- Indicators: Common choices include RSI, Bollinger Bands, Moving Averages, or custom price action logic.
- Spread Filter: Avoid trading when spreads widen—especially during news events or low liquidity.
- Slippage Control: Set max slippage to avoid getting filled at terrible prices.
🧠 Smart scalpers use volatility filters to avoid choppy markets. Think of it as noise-cancelling headphones for your EA.
💰 3. Take Profit and Stop Loss
Scalping thrives on tight exits. But tight doesn’t mean reckless.
- Take Profit (TP): Often 3–10 pips. Enough to cover spread and slippage, but still fast.
- Stop Loss (SL): Usually 5–15 pips. Needs to be tight but not suffocating.
- Trailing Stop: Optional but can lock in gains if price momentum continues.
📏 Rule of thumb: TP should be greater than spread + commission. Otherwise, you’re scalping for crumbs.
🛡️ 4. Risk Management
Scalping without risk control is like juggling knives blindfolded. Don’t.
- Lot Size: Fixed or dynamic based on account balance.
- Max Drawdown: Set a ceiling to prevent your EA from draining your account during bad streaks.
- Equity Protection: Auto-disable EA if equity drops below a threshold.
🧮 Use fractional risk per trade (e.g., 0.5% of equity) to stay in the game longer.
🕵️ 5. Trade Timing and Session Filters
Not all hours are created equal. Scalping during the Tokyo session? You might be watching paint dry.
- Session Filter: Trade only during high liquidity hours (e.g., London or New York).
- News Filter: Avoid trading during high-impact news events.
- Weekend Filter: Disable EA during market close/open gaps.
⏰ Pro tip: Use server time offset settings to align with your broker’s clock.
🧪 6. Execution Speed and Broker Compatibility
Scalping EAs are sensitive to latency. A slow broker is like racing with a flat tire.
- Execution Speed: Choose brokers with fast order execution and low latency.
- ECN/STP Brokers: Preferable for scalping due to tighter spreads and better fills.
- VPS Hosting: Reduces latency—especially if hosted near your broker’s server.
🖥️ If your EA is scalping on a toaster, upgrade to a VPS. Your fills will thank you.
🧠 Final Thoughts
Building a scalping EA is part science, part art, and part caffeine-fueled obsession. But with the right parameters, you can craft a bot that slices through the market like a sushi chef on payday.
Whether you're using DrawMyEA to build your EA visually or coding it from scratch, remember: precision beats aggression. Scalping isn’t about trading more—it’s about trading better.