Traders using the scalping strategy open short-term positions that are held for just a few minutes or even seconds. Scalpers perform multiple, often dozens of trades daily, each aiming for small profit targets. Scalping typically involves high leverage and takes advantage of small price movements to “skim” profits.

The scalping strategy can be executed manually or through automated systems. In manual trading, the trader constantly monitors the market, waiting for the strategy to give buy or sell signals, and then manages the position according to the strategy after opening a trade. This technique is more suited for advanced traders. The largest group of forex robots consists of automated scalping systems.

The breakout trading strategy is used when support and resistance levels are breached, with the expectation that breaking these levels will trigger a larger price movement in the direction of the breakout. A trader using the breakout strategy enters a buy position if the price moves above the specified resistance level, and a sell position if the price falls below the support level.

The trend-following strategy, similar to the breakout strategy, targets short-, medium-, or long-term price movements. Trend-following traders do not necessarily base their entry strategy on a specific price or support-resistance level; instead, they open positions whenever their strategy’s indicators signal the formation of a stronger trend. Positions are typically opened once a trend has already formed, as they expect it to continue for a longer period, meaning they might miss out on the beginning of the trend.

When a trend shows signs of reversal, trend-following traders close their existing positions and wait to see if a new trend develops in the opposite direction. They then open new positions only when the new trend has been established.

The range-bound trading strategy is the opposite of the breakout strategy, where the price reverses from predefined support and resistance levels, moving within a channel between these levels. A trader using this strategy opens a buy position when the price bounces off the support level and a sell position when it reverses from the resistance level. Some traders use these levels for both strategies: if the price breaks through a level, they open a breakout trade, and if it bounces off, they enter a range-bound position.

The grid trading strategy is designed for trading within a specific price range. It generally works in calm market conditions, where the price moves within a defined range. The strategy’s core principle is that when the price moves against the first opened position, it continuously opens additional positions at set intervals, for example, every 10-15 pips. This creates a “grid” of positions, which are then closed at a predetermined level when the price reverses.

The advantage of this strategy is that it doesn’t require in-depth analysis and can be easily automated. However, the downside is that losses can be substantial if the price continues to move against the positions for an extended period, especially if the stop-loss level is not set appropriately and there are many open positions. This is the second-largest group of expert advisors in the forex market, but these types of robots must be chosen and used with caution. Due to the nature of the strategy, improper risk management or poorly designed strategies can quickly wipe out an account. In automated systems, the grid strategy is often combined with the so-called Martingale system.