The scalping strategy is a short-term trading strategy in financial transactions, the core of which is to earn small profits by frequently buying and selling to capture short-term price fluctuations, just like 'peeling an onion' to accumulate gains. Here are its key points:

Core Logic

- Short-term price difference: Utilize minor market fluctuations (such as foreign exchange, futures, stocks, etc.) to open and close positions within minutes or even seconds, with low single transaction profits but aiming for high win rates and trading frequency.

- Risk control: Due to the extremely short holding period, strict stop-loss settings are required (such as exiting upon a loss of 1-2 points) to avoid significant losses when market trends reverse.

Operational Characteristics

- Highly liquid varieties: Choose assets with high trading volume and active volatility (such as Euro/USD in foreign exchange, large-cap stocks in the US market) to ensure ease of buying and selling with a small spread.

- Technical dominance: Rely on short-term technical indicators such as moving averages, MACD, and Bollinger Bands to capture ultra-short-term trends or breakouts at support and resistance levels.

- Sensitive to trading costs: Frequent trading requires consideration of fees, spreads, and other costs, as excessive costs can erode profits.

Advantages and Disadvantages

- Advantages:

- Short holding period, less affected by overnight risks (such as news events).

- If the strategy is mature, it can achieve stable profits in volatile markets.

- Disadvantages:

- Extremely high requirements for trading discipline, emotional fluctuations can easily lead to frequent stop losses or holding onto losing positions.

- Easily caught in one-sided large market movements.