30 Second HYPER Scalping Strategy **HIGHEST WIN RATE**

Traders employ a variety of strategies in order to be able to consistently beat the markets and profit – however, there are few methods of trading as effective as scalping. Scalping refers to a form of trading that relies on making a series of small profitable trades, focussing on quantity rather than quality in order to boost profits. The primary focus of such strategies is to utilise trading volumes rather than performing a lot of complex technical analysis. There are several such trading strategies, and one of them has been discussed in this article. Read on to find out more. 

Indicators Explained

There are 2 main indicators used in this trading setup, and each of these indicators has been explained below in detail. 

EMA 

The EMA is simply the exponential moving average of the stock’s closing price over a given number of trading sessions. It works in a very similar way to the SMA (Simple Moving Average), except it gives more priority to more recent data as this is considered to be more relevant than old data. The parameter that you have to enter for the EMA is the time period. Usually, traders only go long when the current price is above the EMA, and short when prices go below the EMA.  

Average Directional Index

The ADX indicator is often called the ultimate trend indicator, as it helps traders to identify when prices are flowing strongly in one direction. It does this by using a moving average of a given number of bars and therefore helps to reduce the risk associated with trend-based strategies such as scalping. It is a line and gives a value between 0 and 100. The ADX gives the strength of a given trend irrespective of whether the trend is a bullish or bearish one. The higher this value, the stronger the trend. 

Settings 

For this particular trading setup, the following settings were used on the indicators:

  1. EMA: Three EMAs with different periods were used as follows: 
    1. EMA 1: Period = 25
    2. EMA 2: Period = 100
    3. EMA 3: Period = 200 
  2. ADX: A line is added at 30. 

The 200 EMA is used to indicate the overall trend of the price. Longs are only initiated whenever the current price is above the 200 EMA and shorts are initiated when the price is below the 200 EMA. 

The 25 and 100 EMAs are used to check for pullbacks. A long is initiated whenever the 25 and 100 EMA is above the 200 EMA, and the current price is between the 25 and 100 EMA. A short trade is initiated whenever the 25 and 100 EMA is below the 200 EMA, and the current price is between the 25 and 100 EMA. 

The ADX is used to weed out bad trades, longs or shorts are only initiated whenever the ADX is above 30. 

Results

Initial Results 

After a 30-second scalping session over a week’s worth of data, the overall results were: 

Profitability: 4.63% net profit 

Number of Trades: 13

% of trades profitable: 69.23% 

Profit factor: 2.046

Drawdown: 2.46%

Conclusion

Scalping has been proven to be one of the most profitable trading strategies out there, however, even when you’re scalping, you need to ensure that you have a high win rate so that the strategy is fruitful and profitable. Using the strategy discussed above, you will be able to profit in both bull and bear markets consistently. You can even tweak the settings to suit your level of risk and trading style, finding the right balance between the win rate and the net profit. 

Resources: 

  1. 30 Second HYPER Scalping Strategy **HIGHEST WIN RATE** – YouTube 
  2. TradingView Indicator 
  3. Settings Used in the Video 
  4. Exponential Moving Average – Investopedia
  5. ADX: The Trend Strength Indicator – Investopedia
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