Sniper Scalping.
Harman Hora
Elite Pro Trader | Software Engineer | Financial Analyst . Trading Markets Since 2017 | Full-Time Multi-Asset Trader |Discretionary & Quant HFT |$DJI $NQ $BTC $XAU FY 24 ROI 103%
Here’s an ultimate scalping trading strategy designed to achieve a win rate greater than 40% and a risk-reward ratio of over 2.5. This strategy emphasizes precision entries and exits, making it ideal for traders aiming to capitalize on small price movements with a high degree of accuracy.
### Strategy Overview
Market: Forex, Indices, Commodities
Timeframes: 1-minute, 5-minute
Indicators:
- Exponential Moving Average (EMA): 9 EMA and 21 EMA
- Relative Strength Index (RSI): 14-period, with overbought/oversold levels set at 70/30
- Volume: Look for volume spikes to confirm entry
- Price Action: Candlestick patterns (pin bars, engulfing patterns)
### Entry Criteria (Sniper Entries)
1. Trend Identification:
- Bullish Trend: Price consistently above the 9 EMA and 21 EMA, with the 9 EMA above the 21 EMA.
- Bearish Trend: Price consistently below the 9 EMA and 21 EMA, with the 9 EMA below the 21 EMA.
2. Pullback to EMA:
- Wait for the price to pull back to the 9 EMA in a trending market. This pullback should be accompanied by low volume, indicating a temporary retracement.
3. Confirmation:
- Bullish Entry: Look for a bullish candlestick pattern (e.g., bullish engulfing, pin bar) to form at or near the 9 EMA with RSI above 50 but below 70.
- Bearish Entry: Look for a bearish candlestick pattern (e.g., bearish engulfing, pin bar) at or near the 9 EMA with RSI below 50 but above 30.
4. Volume Spike:
- Ensure there is a volume spike on the confirming candle to validate the potential reversal or continuation.
5. Enter the Trade:
- Bullish: Enter long as soon as the confirming bullish candlestick closes.
- Bearish: Enter short as soon as the confirming bearish candlestick closes.
### Exit Criteria (Sniper Exits)
1. Target Price:
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- Initial Target: Set the target at 2.5 times the initial risk (distance from entry to stop-loss). For example, if the stop-loss is 10 pips, the target should be 25 pips.
- Trailing Stop: Once the price has moved 1.5 times the risk in your favor, move the stop-loss to break-even and trail it by 1 EMA.
2. Exit on RSI Extremes:
- Exit the trade if the RSI reaches overbought (above 70) in a long position or oversold (below 30) in a short position.
3. Exit on Reversal Candle:
- Exit immediately if a reversal candle (e.g., bearish engulfing for longs, bullish engulfing for shorts) forms against your position.
4. Time-Based Exit:
- If the trade hasn’t hit the target within 10 minutes, consider closing the position, especially if momentum is waning.
### Risk Management
- Position Size: Risk only 1-2% of your trading capital per trade.
- Stop-Loss: Place the stop-loss just below the low of the pullback candle for longs or above the high for shorts.
- Risk-Reward Ratio: Always aim for a minimum of 2.5:1 risk-reward ratio.
### Example Trade
- Market: EUR/USD
- Timeframe: 1-minute chart
- Entry: Bullish engulfing candle forms at the 9 EMA, with RSI at 55 and a volume spike.
- Stop-Loss: 5 pips below the entry candle's low.
- Take-Profit: 12.5 pips (2.5x risk).
- Exit: Trailed stop-loss using the 9 EMA, closing the trade as soon as RSI hits 70 or a bearish engulfing candle appears.
### Tips for Success
1. Practice Discipline: Stick to the entry and exit rules without deviation.
2. Backtest: Before trading live, backtest this strategy on historical data to understand its behavior in different market conditions.
3. Keep a Trading Journal: Document every trade to review and refine the strategy over time.
This strategy requires quick decision-making and strong risk management, but when executed properly, it can be highly effective in scalping markets.