Hamster Scalping is an automated forex trading method that has been developed to run in the popular MetaTrader forex trading platform and is free to download from most forex brokers. It is worth noting that in order to run forex robots, you will require the desktop version of the MetaTrader platform and a Swing Trading Forex strategy.

Load the Hamster Scalping Expert Advisor onto your platform’s charts, and it will continuously search the forex market for trading signals using the built-in algorithm. When the expert advisor determines that there is a trading opportunity, it can enter the market and manage the position on behalf of the user. While this may appear to be an appealing proposition for those who lack the time or knowledge required to trade manually, there are some important advantages and disadvantages to be aware of.

In this post, we will examine the automatic forex trading method that it employs, as well as any backtests offered by the creator and, most importantly, real verified account outcomes.

What is the Hamster Scalping Forex Strategy?

The Hamster Scalping Expert adviser is a completely autonomous trading advisor that uses two modes for scalping and martingale fans, with entry based on the RSI indicator and an ATR-based filter. Given that this is a forex scalping technique, it will necessitate the best broker circumstances to be successful.

We advocate using an ECN forex broker since they should have a lot of liquidity, allowing retail forex traders to always have access to some of the best pricing on the forex market. Something that is critical when employing a forex strategy that is so reliant on minor pip changes.

Hamster Scalping Trading Strategy

The hamster scalping expert advisor’s developer has graciously supplied an explanation of each setting so that you can understand what each of the inputs do as you will discover everything from indicator values to stop loss, take profit, and much more.

1. RSI Indicator

J. Welles Wilder’s Relative Strength Index (RSI) is a momentum oscillator that gauges the pace and change of price movements and oscillates between zero and 100. The RSI is traditionally considered overbought when it rises over 70 and oversold when it falls below 30, and indications can be formed by searching for divergences and failed swings, and the RSI can also determine the overall trend.

2. ATR Filters

Average true range (ATR) is a volatility indicator that illustrates how much an asset moves on average over a certain time frame. This indicator can help day traders establish when they might wish to commence a trade and can be used to determine where to put a stop-loss order.

3. Martingale System

A Martingale method is a simple negative progression system that includes raising the size of your position after a loss. It entails boosting your trading size when you lose, and traders consider this an extremely risky money management method. Furthermore, these sorts of forex robots sometimes create massive drawdowns and eventually blow up accounts. As a result, it is preferable to utilize a forex EA with a reasonable stop loss and a favorable risk-reward ratio.

How Does Hamster Scalping EA Works?

The performance of Hamster Scalping is inconsistent, but according to the author’s readings, it is highly profitable with a high drawdown of more than 50%. This is common for EAs with relatively high Stop Loss tolerance to finish the trade in little profit after a comeback, if one occurs at all, and it is not uncommon to see two Stop Loss triggers to offset several weeks of profit trades.

General suggestions include a $100 minimum deposit with an ECN broker with rapid execution speeds and low spreads, up to 5 points, and a latency of no more than 3ms if utilizing VPS. Brokers with 4 or 5 digit price quoting will function; nevertheless, settings value entering should be in points regardless, as the hamster scalping EA offers for adequate modification; yet, tempering even in minor quantities may result in very different performance.

ATR and RSI periods, signal levels, Autolot size calculation, Take Profit and Stop Loss levels, Virtual Stop Loss or Take Profit, as it is not relayed to the broker server, but is instead set internally thus invisible to the broker, and nearly every function of the EA are all configurable with Hamster Scalping. The EA also includes a newsreader, which can be configured to filter trade for high, medium, or low impact news. The news feed originates from ec.forexprostools.com, which is not the most popular news feed media. There is some more tuning required in the EA settings to avoid Wednesday triple swaps, while some brokers have this on Fridays.

Hamster Scalping Back Testing

When selecting a forex robot, ensure sure the developer has provided back tests that illustrate how the forex expert advisor has traded over a significant amount of historical data across numerous currency pairings. This might assist traders in comprehending how the automatic trading strategy operates and performs in various market circumstances. Of course, past success is no guarantee of future outcomes, but it can be a useful starting point for estimating what to expect.

We are glad to announce that the developer has published a Hamster Scalping EA back test, especially given that it uses tick data and changing spreads, ensuring that the modeling quality is 99% and providing some of the greatest testing conditions accessible in the MT4 strategy tester. Unfortunately, it is unclear whether the back testing took commission fees and slippage into account, which are two factors that can have a significant impact on any forex scalping robot. The Hamster Scalping expert adviser was further evaluated over more historical data and across multiple currency pairs.

Takeaway

You will need an account with a forex broker to utilize the Hamster Scalping Expert Advisor, and with so many forex firms to pick from nowadays, it might be difficult to know which is the ideal forex broker for you. For example, IC Markets is one of the top forex brokers for manual and automatic trading because of their tight spreads, cheap commission rates, consistent execution speeds, many funding options, and superb 24/7 customer service.

FAQs

1.  What is the primary goal of the Hamster Scalping Strategy?

The primary goal of this strategy is to generate a high volume of small profits throughout the trading session. Scalpers aim to capitalize on market inefficiencies and short-term price fluctuations.

2.  What are the key characteristics of a Hamster Scalper?

Hamster Scalpers are characterized by their ability to make rapid decisions, their tolerance for high trading volume, and their focus on minimizing risk through tight stop-loss orders.

3.  What are the risks associated with the Hamster Scalping Strategy?

The main risks include the potential for significant losses if a trade goes against the scalper, high transaction costs due to frequent trading, and the need for constant monitoring of the markets.

4.  What indicators and tools are commonly used in Hamster Scalping?

Traders often use technical indicators like moving averages, stochastic oscillators, and Relative Strength Index (RSI). They also rely on real-time charts and order flow data to make quick decisions.

5.  How important is risk management in Hamster Scalping?

Risk management is crucial in Hamster Scalping because of the high trading frequency and potential for rapid losses. Traders typically use tight stop-loss orders to limit downside risk and manage position sizes carefully.