Scalping Robots and Spread Requirements
A scalping robot's target is measured in single pips, which makes its result a function of execution conditions rather than of the market. The same code will be profitable at one broker and unprofitable at another.
The arithmetic that decides everything
Take the robot's average target in pips and its full cost per trade — spread plus commission plus typical slippage. If costs form a noticeable share of the target, the edge required grows accordingly. With a 5-pip target and 2 pips of cost, the system must be right substantially more often than half the time simply to break even. That boundary should be calculated before launch, not after the first week.
Average spread misleads
A broker advertises an average spread while the robot trades at specific moments. If its signals cluster around releases or in thin hours, the actual spread will be systematically above average — and the more so the more often the robot trades precisely then. What needs measuring is the spread in the hours the system actually works.
Latency as part of the strategy
For a scalper, the time from signal to execution is not a technical detail but a strategy parameter. Hundreds of milliseconds of latency against a target of a few pips means entering at a different price than the calculation assumed. This is one of the few situations where hosting near the broker's server changes the result substantively rather than psychologically.
What to check before launch
Three things. Real spread statistics by hour at your own broker rather than the advertised figure. Actual execution latency, measured rather than claimed. And the system's behaviour with costs doubled: if the profit disappears, you are trading condition quality rather than a strategy, and any change in those conditions puts the account into loss.
This material is educational and is not individual investment advice. Trading forex carries the risk of losing capital.
Frequently asked questions
Why does the same scalping robot work at one broker and not another?
Because with targets of a few pips, costs form a large share of the result. The difference in spread and slippage between brokers exceeds the strategy's own edge.
Which spread should I use when evaluating a scalping robot?
Not the instrument's average but the actual spread during the hours the robot trades. If signals fall in thin periods or around releases, the real spread will be systematically higher than advertised.
How do I test a scalper's robustness to conditions?
Run it with doubled costs. If the profit disappears, the system depends on execution quality rather than on its own rules.
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