Best Forex Scalping Strategies - The Definitive Guide

On this page, you’ll find the most powerful forex scalping strategies including the single most powerful forex scalping EA in existence today (trust me, you won’t be disappointed).

A lot of guides have been written on forex scalping – from forex scalping technique, to forex scalping systems and even to the best forex scalping indicators that you can use to help you scalp the market – all of them promising you that if you use their strategies, you will do well.

Now, I have went through most of the systems and sadly, they’re all way too basic to give you even the slightest chance of surviving in the ferocious forex arena filled with blood thirsty bears and bulls. I would liken it to them giving you a wooden sword and throwing you into the arena – we all can guess what would happen next.

Forex scalping is a short term trading strategy that requires forex traders to trade currency pairs by buying and selling them, typically holding onto each trade for a short period of time looking for small profitable gains. A proper forex scalping method usually (although not definitely) involves executing a higher number of trades when compared to longer term trading strategies which can hold a position for months. Due to the nature of this short term strategy, a successful scalping strategy would require a high degree of accuracy to ensure profitability, largely because your margin for error is usually really low. Scalping is often associated with trading with high leverage since you need to try to make profits with smaller price movements – however, this is not the case as you’ll discover in your training here that in fact, a lower leverage is better for scalping and trading.

You’re at a juncture of your forex trading career (yes, we treat forex trading as serious as being a career) that requires you to choose between the many different strategies and systems offered by every single self-proclaimed trading guru out there. This decision is crucial. Pick the wrong strategy and you could be going down a 12 months road to losses. That’s why we wrote an extremely in-depth article on how does forex scalping works so that you can decide with confidence whether forex scalping is the way to go for you.

The next question is, what makes a good forex scalping system? The difference between a scalping strategy and scalping system is that a strategy simply lays out the rules, you buy here you sell there, however, a system empower you to carry out the strategy. If you do a simple google search, you see a hundred and one different scalping systems claiming they will make you the next Warren Buffet – some give you ‘signals’, some tell you to buy when the EMA crosses and some tell you to look to wait for the stars to align in the sky.

You see, the problem with all these systems is that they’re not very comprehensive. Sure, some of them might come in the form of an Expert Advisor (EA for those who are familiar with MT4) that helps you buy, sell and close off trades. That is the most basic functions of a system. I previously wrote a very important post on what would make the best features for a scalping system which you should really read. In a nutshell, the best forex scalping system (and I am holding nothing back here) should at least have these 5 features :

1. Use multiple time-frames to pick out the best trading entries (not just one time frame which is way too weak)
2. Have an in-built take profit, stop loss and breakeven feature
3. If possible, have an automated trading function because that shows that the strategy rules can be coded – meaning it is clear and understandable.
4. Have a function that avoids trading during news releases because you should never scalp during heavy news releases
5. Have a function that avoids trading when the spread gets too high because due to the small profits we scalpers aim for, large spreads put us at a significant disadvantage

You’ll soon realize that most scalping systems and even trading systems do not have more than 1 of those features built in and because of that, fail to help you break into the 1% of forex traders who are truly successful in making a living trading forex.

Before you lose all hope in finding a good forex scalping system, you should know that the TFA Sniper we’ve built here at The Forex Army has all those above mentioned features and much more.

At this stage, you know the few main differences that makes up a good forex scalping system.  The key here is to know that a good forex scalping system has both a good offense and good defense. It’s not enough to make a lot of profitable trades, you need a good defense to protect those profitable trades – and this holistic approach is exactly what makes the TFA Sniper one of the best forex scalping systems out there – we take into account not only trading strategy, but also trading psychology, trading methodology and trading accountability to put together one seriously bulletproof system.

We have put together an in-depth explanation on all the features of the TFA Sniper which should help you fully understand the strategies we will be discussing next and more importantly, to learn how to control this extremely deadly weapon to be used against the ferocious bears and bulls of the forex market.

So up to this point, we have established why forex scalping is a more profitable strategy compared to other trading strategies, along with that, the list of requirements that makes a good forex scalping system. We now take a look at the different forex scalping strategies we have engineered to be used with our world class forex scalping system : The TFA Sniper.

There is one very important TFA Sniper confirmation pattern formation that everyone should keep a watch out for and which affects the risk to reward ratio of just about every single strategy listed below, it’s called the Flag Formation (FF), it basically gives you, at a glance, a quick understanding of where the direction of the market is heading and greatly increases your profitability of the scalping trades that you take.

You should read about it here before proceeding to the list of strategies below : FF Scalping Setup

The first strategy is the EZ Scalping strategy, this is our bread and butter trade and usually has one of the highest probability of success. This is largely because the entry requirements are more strict and you don’t get as many trades compared to the other trading strategies. Nonetheless, it remains one of our most successful scalping strategy.

We categorize this as a basic forex scalping strategy because it’s easier to execute and simpler to understand.

You can read about it here : EZ Scalping Strategy

The second strategy we use is the DZ Scalping Strategy. This strategy is almost the same as the EZ Scalping Strategy with the main difference being the strictness which we employ when entering into a trade. By the very nature of its entry requirements being less strict, the DZ Scalping Strategy is a riskier strategy and usually occurs much more often than its EZ counterpart.

Some users have used this strategy to tremendous success, although it is usually done when there are additional confirmation signals like the Flag Formation or if there is an extremely strong levels.

We have categorized this as an intermediate forex scalping strategy because while it can be traded almost entirely by itself, it works best when we look out for additional confirmation signals.

You can read about it here : DZ Scalping Strategy

The third strategy that we use was developed by our very own TFA Hedge Fund trader Timothy (Veteran Tim on this site), he has used it to great success on his live account and has been generating consistent returns over the last 8 months with this method.

This strategy is a little bit more long term than the standard scalping strategy that we adopt here, usually holding trades for a couple of hours to even a day. It targets a healthy risk to reward return of 1 : 3, meaning that all it takes is 1 win to cover 3 losses.

We categorize this as an intermediate forex scalping strategy because it requires some eyeballing to find the flag formations and filtering to pick the appropriate stop loss levels.

You can read about it here : TT Scalping Strategy

This fourth trading strategy is based on the earlier mentioned Flag Formation Setup and is one of my personal favorites because of the extremely high probability of such trades turning into profitable winners.

The strategy uses a risk to reward ratio of 1 : 1 most of the time, at most stretching to 1 : 1.5 if market conditions are really good. In this strategy, it is very clear to see just how strong the market is in your direction and the goal is to ride the flag whenever price retraces a bit into it and is close to the DZ area. Such a strategy seems to be best used with these majors : AUDUSD, EURUSD, USDJPY, USDCHF, NZDUSD and can occur many many times throughout the day as long as there is a flag formation.

We categorize this as an basic forex scalping strategy because it is relatively easy – just identifying the flag formation and picking the point of entry.

You can read about it here : FF Scalping Strategy

This fifth trading strategy is an extremely powerful trading strategy (think 50%+ returns a month) and is meant for traders who do not have time to watch the chart very often. It works on the one hour time frame so you don’t need to monitor your charts as closely and the holding period of trades usually last 1 to 6 hours.

The strategy makes use of Fibonacci pivot points, TFA Advanced Fibonacci Waves, candlesticks reversal patterns and RSI trading strategies and targets reversal trades. The typical risk : reward is 1 : 5+ so bagging one good trade can last you for a long while. This is a fantastic strategy to trade while you’re scalping smaller positions with the other strategies we have here. It works really well in predicting when a strong flag formation might end too.

We categorize this as an advanced forex scalping strategy because it requires chart reading skills and a lot more discretion than the other strategies.

You can read about it here : JT Scalping Strategy

The sixth strategy we have developed is made famous by our very own 2nd Lieutenant Pontus who have doubled his live account in 1 month with verifiable trade statements!

It uses a modified version of the normal breakout pullback strategy utilizing the full power of the momentum indicators of the TFA Sniper and the predictive nature of the advanced fibonacci waves to pick really accurate pullback trades.

We categorize this as an advanced forex scalping strategy because it requires chart reading along with monitoring the TFA Sniper and advanced fibonacci waves. It really isn’t that hard, just that it isn’t as easy as the DZ and EZ trades.

You can read about it here : PT Scalping Strategy

A good reading would also be understanding how support and resistance levels are found with out new TFA Fractal Support and Resistance Radar. To date we believe it’s just about the best support and resistance indicator for MT4. It’s also very useful to combine this knowledge with proper use of the RSI indicator.

An often neglected, but crucially important requirement of becoming a truly successful forex trader is training your mind to think and behave like a professional trader. This is not just some bogus nonsense, in fact, I would classify this as even more important than any trading strategy mentioned above.

The interesting thing is that every part of our human body is designed to be bad at trading and investing, especially scalping. We tend to hold on to our losses for days even and let our drawdown go to really unhealthy levels, but the moment that losing trade gets to breakeven, we let it go and go “phew, that was a close one”. It’s because of this fear of loss mentality that has been built into us that has caused many of us to fail even with the most successful of trading strategies given to us.

The TFA Sniper does a lot to take out as much emotional and psychological barriers that might prevent us to becoming a successful forex trader and scalper, as much as possible, it automates the stop loss, take profits, breakevens, prevents you from trading during news and high spread, prevents you from revenge trading and much more. However, because of the flexibility of the system that allows you to take some manual trades, you’ll always have opportunities to trade more than what is optimum and recommended for you.

Because of this, we have put together a well-written straight-to-the-point article on the most important points on forex trading psychology. It is also heavily recommended to take a look at this amazing (and free) e-book and go through it – this is one of the strongest pieces of advice I have for you. Once you read through it, you’ll understand why through the simple edge that the TFA Sniper has, when multiplied over the law of large numbers (like a casino), it is almost a guarantee that we will turn out profitable.

When it comes to scalping, not every forex broker is a good choice. This is because scalping requires a broker to have really low and stable spreads especially during times of high volatility. I’ve worked in one of the largest forex brokerages before and know exactly how much of the operations work at the backend and what most brokers are concerned about getting. There are essentially 3 kinds of forex brokers :

1. Forex Brokers with no commission but higher spreads
2. Forex Brokers with normal commission but lower spreads (usually ECN/DMA/STP)
3. Forex Brokers with normal commission and fixed spreads

Each of these forex brokers have their own benefits and are catered to different kinds of trading systems. For example, as a scalper, it is important that we always have the lowest spreads (since we’re only targeting a few pips of profit at times), fastest execution (no re-quotes because we have to seize the trading opportunity when it comes in such a fast paced environment) and deep liquidity.

Currently, we’ve partnered with ATC Brokers who is one of the very few 4.7 Stars Forex Peace Army rated brokers that has been around for 10+ years and maintain an honest good business (unlike the many bucket shop brokers who closed during the swiss franc crisis that wiped out many brokers). On top of that, they have the tightest spreads around, true ECN/STP/DMA, lowest commissions and best customer service + backend client logins I’ve ever seen which is why we’ve chosen to partner exclusively with them.

There is always this debate on the best time to scalp forex and I will finally settle this debate once and for all.

The best time to scalp forex is when the market presents you with the opportunity by meeting every single one of your trade entry criteria. Quite frankly, this can happen at just about any time of the day. For the market to meet every single one of your trade entry criteria, ideally, it requires some movement before it can reach that criteria, so in order to get that movement, it requires volatility. Volatility is most present during the New York – London overlap (this means the overlap when the London market is closing and New York market is opening). It is also fairly present during the London – Tokyo overlap and Sydney – Tokyo overlap.

So, if you wish to simply allocate a couple of hours a day to trading everyday, I would recommend :

1. New York – London overlap at the first choice
   8:00 am – 12:00 pm EST (EDT)
2. London – Tokyo overlap
   3:00 am – 4:00 am EST (EDT)
3. Sydney – Tokyo overlap as the third choice (usually more movement in AUD, NZD and JPY pairs)
   7:00 pm – 2:00 am EST (EDT)

The good thing, however, is that whilst you may be sleeping, due to the high demand of all our soldiers here, we have created an auto trading feature of the TFA Sniper that helps you enter into good trades while you’re sleeping. How cool is that?

The TFA Bootcamp Exam is not compulsory, but it’s highly recommended as I’ve made it as tough as possible such that if you can pass this exam, you can be certain you are on track to being a successful forex scalper. It tests you the basic fundamentals, to proper trading psychology and lastly to the different trading strategies of The Forex Army.

Soldiers who pass the TFA Bootcamp Exam will be given an extra 10 days to their demo accounts.

The next thing to do is to practice these forex scalping strategies. Personally, I prefer to practice with a live account with micro lots so that I get the best of both worlds : you get the psychological and emotional intensity of trading a live account and at the same time, you don’t get punished with huge losses since you’re trading small. When you practice with a demo account, you only get half the intensity.

Nonetheless, we allow all users to begin with at least a demo account when starting out with the TFA Sniper. Simply get a demo account with ATC Brokers and fill in the demo request form below :

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