This trading strategy will appeal to pips lovers, as it uses a 1-minute timeframe. Pair – GBPJPY. The indicators used are Bollinger Bands.
So, open the GBPJPY 1-minute chart and set the Bollinger bands with the following parameters:
1) Period 50. Deviation 2 (RED);
2) Period 50. Deviation 3 (orange);
3) Period 50. Deviation 4 (Yellow).
After installing the indicators, you will see that the price is constantly moving within the bands.
M1 Scalping Selling Strategy:
When the price crosses the upper red line and reaches the orange halfway, you enter. If it comes to yellow – great, but rarely comes. After that, a reversal usually occurs, and the price rolls back to the mid line, where you catch the take profit.
M1 Scalping Buying Strategy:
A purchase will be made when the price is between the lower red and orange lines.
You cannot trade during news and quiet markets. The system is well suited for trading between the open of the London session and the Japanese session’s close.
Since the strategy works on M1 intervals, the author uses two types of stop-loss – based on time and loss. Timed Stop Loss: This is quite subjective as it is based on the trader’s intuitive calculations of the time to continue the trade. If the time is exceeded, it is necessary to close regardless of the profit/loss size.
Stop Loss: The stop should be small. In this case, the trader decides how much of the deposit can be risked based on his money management.