High-frequency edge with surgical risk control.
Scalping captures small moves (5-10 pips) on the 1-minute chart using exponential moving average ribbons and momentum confirmation. The edge is small per trade but compounds with frequency. Requires fast execution, tight spreads, and iron discipline.
EMA ribbon (8, 13, 21, 34) must be aligned and fanned in trade direction.
Confirms short-term momentum is coherent, not choppy.
Price pulls back to the 13 EMA (not the 34 — that's a regime change).
Shallow pullbacks keep the momentum intact.
Enter on the next candle's open after a bullish/bearish close at the 13 EMA.
Avoids chasing wicks; confirms the pullback is over.
Spread must be ≤ 1 pip on the traded pair.
Scalping edge is 3-5 pips — a 2-pip spread destroys it.
Target: 5-10 pips based on recent ATR(14) on the 1-minute chart.
Aims for the typical momentum burst, not the full move.
Stop loss: 3-5 pips beyond the entry candle's extreme.
Tight stop — but matched to the tight target.
Time stop: exit after 5 minutes if neither target nor stop is hit.
Dead trades tie up capital and attention.
Short-term trend and pullback zones.
Dynamic target setting based on current volatility.
Confirms momentum shift at the 13 EMA.
Trailing stop
Not used — fixed target and time stop only.
Pros
Cons
Fade the extremes; trust the average.
Mean reversion assumes price oscillates around a statistical average. When price stretches too far from the mean — measured by Bollinger Bands, RSI, or z-score — the strategy fades the move, betting on a return to the middle. Best in ranging markets; fatal in trends.
Catch the explosion after the compression.
Breakout trading waits for price to compress inside a range or pattern, then enters in the direction of the breakout with a stop inside the former range. The thesis: low volatility begets high volatility, and the breakout is the inflection point.
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Open the Risk Calculator with the strategy’s recommended risk percentage already in mind.