I am going to show you this wonderful scalping strategy for bitcoin. This strategy is for a five minutes time frame and it has an over 70 win rate. As you can see these are the trades that I have taken over the last day. This is over 17 trades with just two losses. If I can continue like this. I will be able to turn one hundred dollars into nineteen thousand dollars with this strategy after one hundred trades. I will show you how to use this strategy step by step. So, it’s very important that you watch the entire video and follow each and every step because if you miss one of the steps there is a high risk that this strategy will not work for you.
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Step 1 Switch from Candle to Hiking Hy
Now let’s go through the strategy step by step. So, the first step is to switch from candle to hiking ashy chart hiking ashy. Candles are typically used to smooth out price action, eliminate noise and make it much easier to identify trends in the market. A typical uptrend using regular candlesticks will likely have a mix of both red and green candles, for example, looking at this chart. At this point in time we’re in a short-term uptrend we have a small consolidation at the down we have a strong green candle followed by a red candle. Then a series of green candles followed by another red candle. Finally, another series of green candles before the uptrend ended. This is a typical price movement on a regular candlestick chart just because we’re in an uptrend. It doesn’t mean 100 of the candles will be green. It’s normal to see pullbacks along the way which come in the form of these red candles.
Step 2 Add indicators
However, if we look at a hiking ashy chart during this exact same period of time. You can see that things look very different. We have the same small consolidation at the bottom but the uptrend consists of only green candles before it ends at the top here. This is why it’s much easier to see trends on a hiking ashy chart when compared to a regular candlestick chart. When we’re in a strong uptrend there are two main things. You’ll want to look out for the hiking Ashy candles. The first is a large green body now for those who are new to using candlestick charts. The body is simply the thicker part of the candle whereas the wicks at the very thin part on the top and bottom. So, when we see a large green body on a hiking ashy candle this indicates that we’re in a strong uptrend. The second thing we’ll look out for is no lower wicks on these green candles. Both of these criteria occurring together indicate a strong uptrend similarly when looking for a downtrend on a hiking ashy chart. We want to look out for one large red candle body and two no upper wicks on these candles. Both of these criteria occurring together indicate a strong downtrend. So, now that you have understood the basics of hiking Ashy charts.
Let’s head over to the main strategy. The next step is adding indicators to the chart so click the indicator button in the trading view and search for EMA. Then click the moving average exponential indicator twice one two. Then go to the settings for the first ema and change the length to 50 and then change the color to yellow. You can pick any color. I prefer to make the line a bit thicker. Now go to the settings for the second EMA and change the value to 200 and I prefer to use a blue color for this one. A bit thicker line just like this and now we also need to add macd search for macd and add to the chart. Go to the setting in this strategy, we will not need the signal lines so untick the MACD. The signal lines we only have the histogram and we’ll also need to change the time frame for the MACD. So, notice that we are in the five minute time frame in the chart.
Step 3 Enter Trades
But, for the MACD, we’re using the one minute time frame. So, we will use the 50 and the 200 ema as a trend indicator. We will always take trades in the same direction as a trend. So, when the 50 EMA is crossing the 200 ema to the upside. That is when the yellow line is above the blue line then we are allowed to make long positions. Then we will enter the trades on pullbacks so when we have a big downtick on the MACD. Then we wait for a large green body on the hiking ashy candle and enter the trade right away. So, we’re looking for a downtick on the MACD. That is bigger than the average now we’ll say it’s this one right there so we wait for a large green hiking ashy candle and we enter our trade. So, we take the profit that’s 0.5 percent and we have a stop loss of 0.4 percent. As you can see these traders also win and then we’re looking for another downtick. That is bigger than average now. I will say this one right here. So, I will enter this large green body candle, so we entered a trade right here and take a profit of 0.5 percent and have a stop loss of 0.4 percent.
Step 4 Stop Trading
We won’t enter trades as close to the crossover as possible. The probability of a win is a lot higher closer to the crossover. So, after you made about three to five trades after the crossover stop trading and wait for the next crossover. The same thing applies to shorting as well when the 50 mar is crossing the 200 DMA to the downside. Then we can only take short positions. So, now we’re waiting for an uptick on the MACD. That is bigger than average and then we can enter a short position. So, I would say this uptick is bigger than average. So, we will enter short right here at this large red body and take a profit of 0.5 percent and put the stop loss at 0.4 percent. This is also a win and then we’re waiting for another uptick that’s bigger than average and I would enter right here and take the profit at 0.5 percent and set the stop loss at 0.4 percent and this is also a win. Then we have another big uptick here. I would enter right there and set the target at 0.5 percent and the stop goes up 0.4 percent.
This is also a win and then after a few trades stop trading because it’s getting riskier and riskier since we are in the five minute time frame. Crossovers like this happen a few times per day and we only need to make five trades per day. So, there’s no stress after the crossover. We can stop trading after a few trades. The next step is knowing the potential and using the right leverage. As you can see in this profit calculator if we start with 100 US dollars. We have a win rate at around 70 percent and taking profit of 0.5 percent and having a stop loss of 0.4 percent. We make 120 trades in a month that’s on average four trades per day and use 50x leverage. We can actually make over twenty three thousand dollars per month with this strategy and this only works with exactly 50x leverage. The next step is to trade on the right exchange to trade a scalping strategy like this you really need to use an exchange. That is good for scalping. There are hundreds of exchanges out there and only a few of them are really good for scalping.
So, what you need to look for is an exchange with super low fees because we are taking profit at 0.5 percent. We use a stop loss at 0.4 percent, so if your trading fees are high. It will eat too much of the profit and this strategy will no longer work. For example, if we use binance here as an exchange look at these fees 0.1 percent for limit orders and 0.1 percent for market orders. 0.2 percent from the profit will be taken in fees. So, that is obviously too much. So, if we run this strategy with finance we would lose all the money after just a few trades because this is a very high scalping type of trading. The only exchange for me to take all of these trades is a bit on bit. I will make money when I’m using market orders. I only pay 0.075 in fees and this is the lowest I’ve found out there. So, this is really really good for scalping and I’m using market orders for my entries and limit orders for my exit. So, I will pay an average 0.05 percent in fees on each trade. That’s enough to turn 100 into 23 000 based on the strategy after 120 trades.
This article is a transcription of a video made by Crypto Giant
Original video: https://youtu.be/Df-eKNJDkRo
