Today we're introducing our latest module designed specifically to combat high-frequency scalping strategies that can harm broker profitability. This powerful addition to the VELES platform provides unprecedented visibility into micro-timeframe trading patterns.

Understanding the Scalping Challenge

Scalping, particularly on M1 and M5 timeframes, poses unique challenges for brokers. These ultra-short-term strategies can exploit pricing inefficiencies, increase operational costs, and impact liquidity management.

How Our Detection Works

Our scalping detection module employs sophisticated algorithms that analyze:

Trade frequency and duration patterns
Average holding times across different instruments
Profit/loss distributions on micro-timeframes
Order flow toxicity indicators

Real-Time Analysis

The system processes every trade within milliseconds, building comprehensive client profiles that identify scalping behaviors instantly. Key metrics tracked include:

Percentage of trades closed within 60 seconds
M1/M5 timeframe activity concentration
Average pip targets and stop losses
Trading session patterns

Customizable Response Actions

Once scalping activity is detected, brokers can configure automated responses:

Dynamic spread adjustments
Execution delay implementation
Account flagging for manual review
Graduated warning systems

Integration and Setup

The scalping detection module integrates seamlessly with existing VELES installations. Setup takes less than 30 minutes with our guided configuration wizard. The module supports MT4, MT5, cTrader, and proprietary platforms.

Early Results

Beta testing partners have reported significant improvements in their operations, with average reductions in scalping-related costs of 65% within the first month of deployment.