Quant Scalper monitors various newswires to get a jump on significant news items. Quant Scalper is very active in momentum trading and further perpetuates the magnitude of price movement and volatility. The nimble get rewarded while the latecomers get trapped. Momentum trading is the hallmark of algorithm programs that can execute trades in milliseconds. Quant Scalper is programmed to access news and quotes faster than humans. This EA is constantly competing, racing and leapfrogging each other to snatch liquidity. This causes rapid price moves that invite momentum traders trying to game the algorithms.
What is momentum?
To a certain degree, momentum is the opposite of volatility. During a high momentum market period, price only moves in one direction and the candlesticks do not have large shadows. Momentum is often referred to as trend strength. In a ranging market, there is no momentum because price moves back and forth between two boundaries. The strongest trend, therefore, has little to no volatility and a lot of momentum. A ranging market often has high volatility and low momentum. At the end of trends, you can often see volatility picking up when momentum declines.
Shorter Time Frames and Holding Periods
Momentum trading prioritizes shorter time frame charts like the 1-minute, 5-minute and 15-minute time periods. Focusing on the immediate action allows for heavier share sizing offset by small holding periods to manage risk. Momentum traders need precision entries and exits with instant executions made possible by utilizing direct-access trading platforms that enable efficient routing preferences and enable access to ECNs.
Pairs: EURUSD, GBPUSD
- Take Profit
- Stop Loss
- Fixed Lot Size
- Use Money Management
- Risk Percent - Risk per trade
- Candle Size - Minimum candle size for entry in points
- Magic Number
- Expert Comment
- Max Spread In Points
- Trailing Distance Pending Order - Distance of pending order to the current market price
- Trailing Stop
- MA Period - Moving average period
- MA Method - Moving average method
- Limit Trade Per Candle - Use max number of trades per candle
- Max Trades Per Candle - Max number of trades per candle
- Close Trade At End Of Candle
- Hide SL/TP From Your Broke
1. It has been added a new function to detect if the broker spread is being widened during the trades of the EA.
2. It has been added a new function to mitigate the effects of the big spread while the EA is making transactions.