Dec 16 2019 6
In order to increase trading performance, traders often use different methods. One of the most effective forex strategies to maximize profit margins is to increase the number of transactions by reducing the time frame. The more often the strategy appears, the better the result is for the same limited time period. This explains the growing popularity of "Scalping" strategies. Scalping is the name of the method of trading on very short time frames. The key lies in the minutes, because the shorter the time frame, the harder it is to predict, and the longer time frame is not the ideal type to use scalping. Today we will show you the forex one minute strategy.
In case you're interested:
- Day trading and swing trading - the currency market
- What is forex trading strategy - every detail you need to know
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Naturally, pursuing quantity will incur a loss of quality. Even completely unimportant factors can affect the price movement using a 60-second day candle. Therefore, it is necessary to try simple strategies and indicators, which have very clear usage. Oscillators and trend indicators are extremely suitable to go together to look for reversals.
Common one minute strategy
As mentioned above, most forex scalping strategies are built on the use of classical oscillators, so the most popular trading algorithm among scalping is a variant of Multi-Stochastic. they are built based on filtering signals from each other from two tools.
The classic Multi-Stochastic strategy
In the cult of trading algorithm, two or more stochastic with different cycles are used. With this approach, the false signals are filtered out, they are signals emitted in fast stochastic, but do not lose the rate of occurrence of the settings.
In Multi-Stochastic can use different indicator parameters. The quantity is also at the discretion of the trader. In addition, there are new variations of the algorithm on specialized forums that use the same classical oscillators (RSI, CCI, AO, Momentum, etc.).
- Recommended instruments: Any. The highest efficiency is achieved with traditional, less volatile assets. (EUR / GBP; AUD / NZD; Gold etc.)
- Trading time: Asia and Pacific Session. In addition, European continental session is also quite appropriate.
- Time frame: 1 minute.
- End time: 1-5 minutes.
- Indicators used: Stochastic 14; and faster Stochastic (in classic set 5). These two indicators must be set up with the 80/20 overbought / oversold cycle.
The input signal is when the oscillator lines of the stochastic are together. Sell in oversold areas; Buy in oversold areas. Moreover, the fast Stochastic signal is a preliminary signal, while the slow Stochastic signal is the filter signal.
To increase the quality of the incoming signal, the chart can add other oscillators or add Stochastic. The profitability of this best forex strategy is quite high, helping to use the Martingale principle and other risk insurance nets.
Bollinger Bands for forex 1 minute strategy
Transaction algorithm is based on the use of Bollinger channel. In the classic version of the strategy, buy / sell signals when they are outside the price area according to the chart. However, below is a modified version of the algorithm with the average of the chart being a simple moving average.
- Recommended assets: Any, except cryptocurrencies.
- Trading time: Asia, Pacific session and early European session.
- Time frame: 1 minute.
- End time: 1 minute.
- Technical indicators used: Classic Bollinger Bands 20/2; Simple Moving Average with the second cycle, MACD indicator.
As soon as the upper band of the Bollinger channel is crossed by an oscillator line, a sell transaction needs to be opened. And vice versa, when there is a line below the threshold, this is a buy signal.
Strategic signals can be filtered by oscillating lines or candlestick patterns. The forecast is made for the next candle, so the waiting period should not be longer than the time frame of this forex one minute strategy.
What do you need for the forex 1 minute strategy?
- Low spread: The core idea of this strategy is to make profits from the fluctuation of the market. Therefore, it can be pretty risky. So you must choose a low-spread broker in order to minimize the risk. When the price moves in another direction and the spread is too high, you can lose all of your money.
- Low commission: Some traders will choose the ECN accounts to perform this one minute strategy because the spread of those accounts is very low, almost 0. But brokers charge commission for those accounts. Therefore, you should pick a broker with low commission. Some examples are Exness, XM, or HotForex.