DynaScalp is a forex robot developed by the team over at LeapFX. They have been around the forex industry for a few years now. I have reviewed some of the other commercial forex software that they have available, including Trade Explorer, The Wave Scalper, News Action Trader, Jet Trader Pro, Gold Trader, Arbitron and Econ Power Trader. As you can see, they have certainly been busy pumping these forex systems out! Therefore, what makes DynaScalp any different from the rest? This DynaScalp Review should give you a clear idea of what it does and how it works. Hopefully then, you can make an informed decision as to whether it is a forex robot you would like to try out. Without further ado, let’s get to it!
What is DynaScalp?
DynaScalp is a forex expert advisor (EA) that runs in the MetaTrader 4 desktop platform. An EA is another name which the MT4 platform gives to forex robots such as DynaScalp. This particular forex robot will scan the charts for potential trading signals based on its built-in trading algorithm. When DynaScalp finds a signal that meets its preset criteria, it will place and manage trades on behalf of the user.
As the name rightly eludes to, the DynaScalp EA uses a scalping strategy which aims to take advantage of small market movements. It will aim to grab a few pips here and there, which does require special trading conditions (more on this later).
Credit where it is due, DynaScalp does use a relatively tight stop loss which cannot always be said about scalping robots. Nothing can be more frustrating than seeing one losing trade wipe out a long run of wins!
It also closes any open trades out before the weekend. This is important because there can be massive gaps that occur over the weekend. Whilst they can work in our favour, it can be ugly if we are on the wrong side of a weekend gap.
Stop losses can be missed as the market is closed, they are not always respected. If there was an open trade with a 10 pip stop loss but the market gapped 100 pips over the weekend, the los could be x10 greater than it should be, that’s not even counting broker fees. Believe it not, there is something called trading the gap for those brave enough (or stupid enough) to tread where others dare not.
One of the key features if the DynaScalp EA in my humble opinion is the fact that it uses a built-in news filter. I too often see forex robots that rely solely on technical analysis via a combination of indicators.
I think it is important to combine various methods of market analysis to aid with trade decisions. If a strategy does not know what economic releases are coming up, it may not be able to avoid potentially volatile market conditions. Price action analysis and sentiment analysis can also help to further filter each trading signal.
The developer mentions using a scalping strategy called “asset weight management” and shares some interesting QuantAnalyzer portfolios with an overview of statistical performance, historically speaking.
Asset weight management means to add more weight on the most relevant pairs of the period, while reducing the weight of the less relevant. So, while the DynaScalp strategy is performing well in some pairs, its participation in the portfolio as a whole, aims to cover the bad periods of other pairs. Nobody likes one bad apple spoiling the batch, right?!
By combining a night scalping strategy with the asset weight management system, LeapFX let the market control the weights of the pairs in the portfolio and thus the DynaScalp software and strategy is able to self-balance according to the current conditions.
In saying that, it will initially set a starting asset participation point for all pairs traded, and following on from that, it will update it according to the results of each pair. Therefore, the currency pairs with the most profit can have their participation increased, while the pairs that are not performing well may have their participation decreased. We cannot guess exactly what the market will do, but we can just ride the present tendencies.
I like this, it means the strategy is potential not as rigid as some others can be. The majority of forex robots will buy if “x” happens or sell if “x” happens. It is good to see the developers considering other aspects of trading other than trying to win every trade, all the time, regardless of the consequences.
On that note, it is worth mentioning that the DynaScalp robot does not use any potentially dangerous grid trading systems or martingale money management. More often than not, I have seen these blow trading accounts up, especially when it comes to new traders.
Please learn as much as you can and I would always start on a demo trading account to begin with. This will enable me to familiarise myself with an EA and try it out risk free. If I am pleased with its performance, I amy then consider switching over to a real live forex account.
The developer mentions that it has been tested specifically on the following trading pairs: AUDCAD, AUDUSD, CHFJPY, EURAUD, EURCAD, EURCHF, EURGBP, EURJPY, EURUSD, GBPCHF, GBPUSD, USDCAD, USDCHF, USDJPY, XAUUSD.
Of course, you are free to use on any pairs that you wish. Consider that your risk will be increased with the more currency pairs you trade. E.g. if you trade 10 pairs with 2% maximum risk on each, that is an overall risk exposure at any time of up to 20%! Make sure you adjust according to your own trading style and risk preferences.
How do I use DynaScalp?
It is very easy to use the DynaScalp EA, making it accessible to forex traders of all experience levels. The automated fx strategy includes step by step setup instructions so that you can have it up and running on your MT4 charts in minutes. If you haven’t already, you can download MT4 from the majority of forex brokers.
I prefer ECN forex brokers as I find that they usually have more favourable trading conditions. This includes tight spreads, competitive commission fees and reliable trade execution speeds without dealer desk intervention which can sometimes lead to a conflict of interest between broker and trader.
I think that it is even more important to use a reliable forex broker when trading with a scalping system such as DynaScalp. These type of forex strategies can depend on low spreads and commissions with minimal slippage. I have seen the same scalping system work well on one broker but fail miserably on another, simply due to the trading conditions.
When scalping, we ideally need the best bid/ask prices available. An ECN forex broker can pool together liquidity from a variety of liquidity providers (LPs). What this means, is that they can then match the best prices available from the liquidity pool at the moment a trader wants to enter a position. Of course, market volatility and forex trading hours can also pay a part when it comes to execution speeds.
Now that we have covered what DynaScalp is and how it works, lets take a quick look at some of its most prominent features:
- Fully automated forex trading system
- Developed to run in the MetaTrader platform
- Uses a forex scalping strategy
- Built-in news filter
- Trades close on the same day
- No grid trading strategy
- No martingale money management
- Includes instruction manual
- Full support
- Free upgrades
- Money back guarantee
DynaScalp Back Testing
There is a large selection of strategy tester results available on the DynaScalp website. You can see historical performance over a 10+ period across multiple currency pairs. I applaud the developer for sharing these although I would like to see them including commission, slippage and variable spreads. This is because these are 3 things that can have a huge impact on scalping systems. So much so, it can be the different between a winning and losing strategy.
The more experienced users out there are free to back test the DynaScalp EA in the MT4 strategy tester to verify results or find their own customised preset files for any timeframe or currency pairs they wish. I would use Birts TDS to achieve 99% modelling quality and also have the ability to back test with tick data, variable spreads, commissions, slippage, etc.
DynaScalp Verified Results
I must say, I am quietly impressed with the real live verified DynaScalp Myfxbook accounts being shared by LeapFX. As long as they have been running, the DynaScalp EA performance looks quite good to me. The drawdown is reasonable and equity growth has been steady. It has a decent win rate, profit factor and frequency of trades.
That being said, I still think it will need the ideal broker conditions to maximum the chances of it being successful long-term. Also keep in mind that past performance is by no means any indication of future results. This is trading and anything can happen.
It is of the upmost importance to make sure that you have a clear understanding of the significant risks of using the DynaScalp EA or any other forex robot for that matter.
To see the latest live verified trading account performance of all forex robots please visit my best forex robots results page.
LeapFX keep things nice and simple with just 2 DynaScalp EA packages to choose from:
- 1-year membership $247
- Lifetime membership $397
Considering the DynaScalp Myfxbook verified results and back tests provided by LeapFX, I must say that I am actually quite impressed if they are anything to go by. I won’t get carried away simply because this is all historical data and anything can happen in trading.
DynaScalp does use an innovative and dynamic scalping system that can be applied to multiple currency pairs. This for me emphasises the strength of a strategy if it is versatile across different instruments.
However, sorry to disappoint but as this is a forex scalping system that relies on grabbing a few pips over and over again, it will require special broker conditions. We need to consider spreads, commissions and slippage.
For that reason, I would personally start on a demo account and only consider switching to a small live account if I see it holding up given the brokers conditions. In saying that, demo accounts are not always an accurate representation of live accounts as some do not use real liquidity. I have often seen demo trades get executed at better prices compared to live accounts.
Regardless, if you would like to find out more about the DynaScalp EA, please feel free to head on over to the official website by using the link below.