Scalping vs. Swing Trading with Forex bots in 2024 - XAUBOT

Scalping vs. Swing Trading with Forex bots in 2024

swing-trading

Being a forex trader is kind of like being a decision maker all the time. Forex bots. Since you are making important decisions left and right. And one of these important decisions is the overall approach you opt for in your trading process. 

There are two major forms of trading style, among others, known as scalp trading or scalping and swing trading. 

Although there are other types and styles of trading, these two are particularly popular among traders. And as the use of forex trading robots is on a steady and sometimes sharp rise, we decided it would be a good topic to discuss scalping and swing trading but with the help of a forex robot. 

So let’s take a look at each of these trading styles separately and then see how forex trading robots can be implemented to automate this process. 

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What are Forex bots in Scalp Trading? 

Scalp trading or scalping is one of the most popular and widely applied approaches to trading in all financial markets and also the foreign exchange market. In fact it might be one of the most ideal trading styles for the forex market and we will see why. 

Scalping is a form of extremely quick trades. This is an important characteristic of any trading style – i.e. how long it takes for each position to be opened and closed and also how frequently trades take place. 

As we said, in the case of scalping, positions are opened and closed very quickly, maybe even a few seconds. So positions are not held onto for a long time. In fact, as far as positions are considered, scalp trading has the shortest time frame for positions. 

At the same time, in terms of frequency, scalp trading is one of the high frequency trading methods applied by traders, as trades take place quickly one after the other. In fact, this short span of positions and the high frequency of the trades are both crucially important features of scalp trading. 

This is because scalp trading yields small amounts of profit. As a result, short span of profits and high frequency of trades are needed so that small profits are accrued in this way. 

And the reason we mentioned scalping is particularly useful for the forex market has to do with the nature of this market. In the forex market we witness fluctuations and volatilities that occur very quickly and suddenly. So it is important to have a trading approach that is able to capitalize on these very quick and small fluctuations. 

 

You should read: Maximizing Profits with Automated Forex Trading Robots

 

Advantages of Forex Scalp Trading 

There is a reason why scalp trading is one of the most popular Forex bots styles across all financial markets. It is able to yield good results with relative ease, though with high intensity. 

As mentioned, many financial markets exhibit small scale fluctuations rather quickly. As a result, scalp trading is a particularly useful strategy for catching these small ups and downs at the right time. 

Another important advantage of forex scalp trading is precisely the fact that positions are closed very quickly. This means as a trader with this trading style, you will never have any positions held overnight. As you know, when you hold onto positions overnight, you will have to pay fees related to this to your broker. But this is something that does not exist with scalp trading. 

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How Is Swing Trading Done by Forex bots? 

The other style of trading we are discussing in this article is known as swing trading. It is regarded as a medium term strategy of trading. To reiterate, trading styles and strategies are divided according to different factors, but most importantly based on their time window and frequency of trades. 

In this way, swing trading stands right in the middle. In this approach, Forex bots and positions are opened and closed in a matter of days or sometimes even weeks. 

The reason positions are kept open for a much longer time, especially when compared to scalp trading, is that in swing trading you are opting to trade the so-called swings that take place based on the overall trend in the market. 

So instead of focusing on momentarily and short-lived fluctuations, with swing trading we focus more on the overarching market trends and the swings that take place within them. 

 

You should read: What Is Prop Trading and How Does It Work 2024?

 

Benefits of Forex Swing Trading 

The reason why traders might choose to trade with the style of swing trading has to do, again, with its time frame of trading. As we said, in swing trading we have a medium term approach to trading. Therefore, it does not require the trader to constantly monitor the market. 

This is, thus, quite an ideal trading style for those traders who do not have enough time to dedicate to trading. They can make their technical and fundamental analyses, open their positions, and then leave them be for days or even weeks at a time. 

This is where the biggest advantages of swing trading lies. Forex bots, In addition, because of this nature of swing trading, the profits that are yielded are also more substantial compared with scalp trading. 

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Scalping vs. Swing Trading Through Forex Robots 

So there you have it. Scalp trading versus swing trading. But let’s see how they fare when we introduce forex robot trading. 

There are forex robots developed to implement all kinds of trading styles and strategies. As such there are also bots that implement swing trading or scalp trading. 

Although swing trading is not really a trading style that would require automated trading as it does not require much attention from a trader, whether real or programmed. 

On the other hand, scalp trading is extremely intense and requires hyper focus and attention. Therefore it is the most ideal candidate for outsourcing to a robot. But you need to be very careful about which trading robot you choose for scalping, as trades are quick and the risk is quite high. 

An ideal example for an automated trading tool and rather specialized in scalp trading, in addition to other forms of trading, is XauBot Pro. 

XauBot Pro implements highly advanced technical and fundamental analysis techniques and is also able to trade all currency pairs in the forex market. So even if you do not have the time or the advanced expertise of trading to engage in scalping, you can leave it to XauBot Pro. 

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You should read: Passing the Challenge of Prop Trading with XauBot 

 

Conclusion 

Scalping and swing trading are two of the most common styles of trading in all financial markets. In scalping we have quick and short term positions, lasting seconds to minutes only. Whereas in swing trading we have medium term positions, lasting days to weeks. You can use forex robots that specialize in these styles of trading. One such bot is the XauBot Pro, which facilitates and automates scalping all forex trading pairs with high precision and based on machine learning and artificial intelligence to provide users with steady profits and guaranteed results. 

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