$BTC A scalping strategy in trading (especially in crypto or forex) is a short-term approach where traders aim to profit from small price movements—often entering and exiting trades within minutes or even seconds.
Here’s a complete breakdown of a solid scalping strategy:
✅ 1. Core Principles
High frequency: Dozens to hundreds of trades per day.
Small profits per trade: Often 0.1%–0.5% gain.
Tight stop-losses: Capital preservation is key.
High liquidity assets: Like BTC/USDT, ETH/USDT, EUR/USD.
Low fees: Use exchanges with rebates or low spread (Binance, Bybit, etc.).
📊 2. Technical Setup
Indicators (Choose 2–3 max)
EMA 9 / EMA 21: For fast trend detection.
VWAP: Volume-weighted average price—key for institutional bias.
RSI (5 or 7 period): Detect overbought/oversold quickly.
MACD or Stochastic (optional): For entry timing.
Example Strategy (1-Minute Chart)
Buy signal:
Price above VWAP
EMA 9 crossing above EMA 21
RSI between 50–70 (momentum, not oversold)
Sell signal:
Profit target hit (e.g., +0.3% to +0.5%)
Price closes below EMA 9
RSI > 75 (indicates possible reversal)
🧠 3. Psychology & Discipline
Stick to your system—don’t chase moves.
Avoid news hours—volatility may spike unpredictably.
Limit trading sessions (e.g., 2 hours max) to avoid fatigue.
Log all trades: Win/loss, entry, exit, setup—review weekly.
🧮 4. Risk Management
Risk per trade: 0.25% to 0.5% of total capital.
Use hard stop-losses—never let a small scalp become a large loss.
Position sizing:
\text{Size} = \frac{\text{Account Capital} \times \text{Risk %}}{\text{Stop Loss (in price)}}
🧰 5. Tools to Use
TradingView: For charting and backtesting.
Bookmap or Tensorcharts (advanced): For order flow/heatmaps.
Crypto scalping bots (like 3Commas, Coinrule): If going semi-automated.
📈 Backtest Example
Market: BTC/USDT
Timeframe: 1-min
System: EMA 9/21 + VWAP + RSI
Stop-loss: 0.3%, take-profit: 0.4%
Result: 65% win rate over 300 trades → Net gain if R/R is >1
