80% WIN RATE 15 minute Scalping Profitable Trading Strategy RSI Indicator Secrets

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

RSI 

The RSI is a momentum indicator that is used to analyse the stock and identify if it is overbought or oversold at any point in time. It does this by monitoring the magnitude of recent price changes. The RSI is presented as a number between 0 and 100, wherein a number below 20 represents an oversold stock (ripe for a long position) and a number above 80 represents an overbought stock (ripe for a short). 

SSL Channel

Known as the SSL, the Semaphore Signal Level channel chart is an indicator that is primarily used to identify trends. It does this by combining a variety of moving averages to give a clear visual signal of price. The SSL is primarily just a combination of moving averages, however, using the combined indicator as opposed to the individual average lines makes the charts cleaner and less cluttered. The SSL channel shows green and red lines to show you when a price trend is forming. 

Trend Direction Force Index

The Trend Direction Force Index is used to identify and calculate the strength and direction of a particular trend. It returns a value of +1 when the trend is bullish, -1 when the trend is bearish, and 0 when the trend is neutral. Due to its all-or-neutral nature, it can be used to create entry and exit signals for different trading strategies. 

Settings

For this particular trading setup, default settings were used on all the indicators. 

A long was initiated when the RSI was in the overbought region, the price was above the green SSL channel, and the Trend Direction Force Index showed a bullish trend. 

A short was initiated when the Rsi was in the oversold region, the price was below the red SSL channel, and the Trend Direction Force Index showed a bearish trend. 

The risk-reward ratio was fixed at 1:2. 

Results and Adjustments

 

Initial Results 

After a 15-minute scalping session over 9 months of past data on BTCUSDT, the overall results were: 

Profitability: 127.3% net profit 

Number of Trades: 258

% of trades profitable: 79.84% 

Profit factor: 1.972

Drawdown: 12.19%

Adjustments 

Some additional indicators and settings that could be added in order to increase the win rate and reduce the risk employed are: 

  • Using lower leverage would reduce the drawdown of the strategy, thus boosting the profitability. 
  • The stop-loss and take-profit settings could be tweaked to get a higher win-rate or a higher profitability depending on your preferences. 

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. 80% WIN RATE 15 minute Scalping Profitable Trading Strategy RSI Indicator Secrets – YouTube 
  2. TradingView Indicator 
  3. Settings Used in the Video 
  4. Relative Strength Index – Investopedia 
  5. SSL Channel – Forex Central
  6. Trend Direction Force Index – Forex Admin

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