Piping, along with the famous scalping, has long been one of the most famous and widely used strategies of the Forex exchange among market players. It is the piping that makes it possible to get revenue in very short time intervals: the duration of the operation, often, not more than a couple of seconds. Well, that's impressive. And despite such short time intervals, the daily profit indicator can be determined from 100% and higher (literally up to 1000%), relative to the main part of the trader's deposit. As can be seen from the name of the strategy, piping is directly related to the term pip. It is this amount of profit-equal to the pips (point) that a player receives in certain transactions in the forex market. Let's consider in more detail the characteristic features of the strategy, highlighting its advantages and disadvantages. Among the main advantages are: 1) high rate of profitability. It sounds a little strange, but if you analyze and closely study short-term forex strategies (such as scalping and piping), you can be surprised by the results and get a big profit due to the short and extreme nature of transactions and trading. You can use almost all the finance on the deposit and are not afraid of kickbacks. You use the maximum leverage, and that explains everything. With only 150 US dollars, and using a margin of 1: 1000, a trader can make a deal with a volume of 1 lot, and therefore has a chance to earn 10 dollars of income from just one point. Of course, this type of strategy is not used for long time intervals, the first correction jump and your deposit is reset. A strategy piping allows the trader to make good money from one operation, you can get from 10 to 100 dollars unless of course to use the right approach. Moreover, the main advantage of the strategy is precisely the simplicity and relative ease of trading. You do not need to do an in-depth analysis and make a complex forecast of the trend, explore market history. To implement tactics and successful trading, the installation of the tool and one of the technical indicators will suffice, and based on its indications and parameters, one can safely open the transactions. But despite some positive moments, the strategy of piping, like any other foreign exchange market strategy, has several shortcomings: 1) not all dealing centres or forex brokers make it possible to work with such a strategy (many simply have to limit the limit for concluding short operations). It is better to immediately pay attention to this and choose a broker that allows you to trade on scalping and piping. 2) the intense nature of the work Using this strategy, you need to be constantly in a state of control and tension, open a lot of transactions on the market, constantly be behind the screen of the monitor. As a consequence, fatigue occurs, the trader loses attention and makes mistakes, which lead him to loss of funds. 3) high risks All money is secured: in case there are technical difficulties or emergency circumstances, you can lose all means. The main sense of this strategy is not too complicated, and for the player, the main task is precisely in choosing an indicator for piping. The second step is the definition of trading tactics of trading. As for tactics, the operation is closed, with losses exceeding 5 pips or with a profit that exceeds 7 pips, in this case, the average yield on transactions remains. The trader applies the maximum (maximum possible) volume of transactions. But with such a volume, seeks to find the optimal ratio: the proportion, so that the price movement in one point would correspond to 5% of the deposit (for example, a deposit of $ 100 - a volume of 0.5 lot). The principle of implementing the strategy: We must choose a currency pair that has a high level of volatility, and then set the chart of the selected currency instrument, one of the trend-setting indicators. Then determine the direction of the trend, M1. M5, M15, and we are striving to enter the stock exchange at a time when the kickbacks were over. Transactions need to be opened only in the direction of the trend. Income (profit) during the day, immediately need to withdraw to another account and save only a certain amount on the account. With the right approach and planning, the strategy of piping gives good opportunities. But, unfortunately, the risks are also very high.
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