Understanding of the characteristics of different currencies from a fundamental and technical standpoint will answer the questions What Currency to trade?, When to trade it? and How to trade it? : which strategy to use.
The strategy currently under development is purely technical and is trading on the spot market. Other strategies that are considered for future development will involve macro views and fundamental analysis.
For a scalping strategy to be profitable, a broker with competitive spread and low latency is of utmost importance. In order for the spread to be as low as possible, those influencing factors need to be carefully looked at:
- Liquidity of pairs chosen, the most liquid pairs being EUR/USD , USD/JPY, USD/GBP
- Time during the day when liquidity is greater