Scalping. Strategy

  To effectively, you must minimize your exposure to and maximize your efficiency because scalloping relies on high volume and small consistent gains your strategy must be mechanical and rule based to remove the influence of emotions during rapid fire decision-making below is a robust framework for a one minute trend follow scalping strategy designed for high liquidity pairs like you are USD. The one minute trend follow set up this strategy uses two exponential, moving averages EMA‘s to define the trend and a sarcastic oscillator to your entries set up parameters timeframe one minute M1 or 5M5 indicators 50. EMA determines the long-term trend on your current timeframe 10. EMA determines short-term momentum Stokastic oscillator 14 33 help identify short-term exhaustion entry trigger two entry rules/by trend filter. The EMA must be above the 50 EMA and both should be sloping upwards the pullback wait for the price to pull back toward the EMA or between the 10 and 50 EMA’s the trigger this sarcastic oscillator must be in an overall condition. Then start to curl upwards entry enter on the open of the next candle once the stochastic lines cross upward while the price is near the 10 EMA 3 exit rules stop loss place your stop loss just below the most recent swing low the low of the pullback take profit aim for a fixed wrist to reward ratio of at least one to 1.5 or 1 to 2 since you are scalping you can also exit as soon as the price hits a nearby resistance level or when the sarcastic reach the overboard zone above 80 strategic disciplines for scalpers to make this or any scalping strategy sustainable you must adhere to these three rules, rational strict time windows only scalp during peak liquidity, e.g. London open or New York morning, spreads wide, and significantly outside these hours eating your profit transaction cost awareness because you aim for 3 to 5 pips one spread means you lose 20 to 33% of your profit before the trade even moves use ECN brokers with the lowest possible spread our daily loss cap stop treating immediately if you hit your daily loss limit e.g. 2% of your account over trading after a loss is the fastest way to blow an account refining your execution avoid counter, scoping, beginners often try to catch the top or bottom of a move when scalping it is mathematically safer to trade with the momentum defined by the 50 EMA focus on market structure before looking at indicators. Identify the immediate support and resistance SNR levels if your signal tells you to buy, but you are two pips away from a major resistance level, do not take the trade. The risk of a reversal is too high journaling for scalpers since you make Your net result per day rather than just focusing on individual wins this helps you monitor your overall profitability after spreads and commissions. Important never attempt to master a scalping strategy on a live account first use a demo account to execute at least 50 trades document your results and ensure your edge remains positive after accounting for all commissions and spreads which currency pay are you currently analyzing or testing with this approach and how do you plan to handle the impact of spreads in your back testing?