Piping strategies for profitable trading on M1, indicators and signals

Pipsovka as a trading style is the most profitable, however, at the same time the most labor-intensive. Trading in a chaotic market, where market noise makes up 90 percent of the time, requires a trader with nerves of steel and special skills.

It is in pip trading that you as a trader have no time to hesitate, since every second of delay takes away a couple of points of profit, which, as a rule, at best does not exceed 10-15 pips per trade, or even less.

Naturally, in order for pips strategies to bring stable profits, you will need to be systematic, namely, use special trading tactics that are designed specifically for pips on the minute chart.

The strategy for pipsing on M1, which we want to offer you, is a universal tool that is designed for trading almost any currency pair on the Forex market.

It can also be successfully used on cryptocurrency pairs with high volatility.

The trading strategy itself is based on standard technical indicators , so you can apply it regardless of which terminal you work with.

Preparing a strategy for scalping on M1

First, open the minute chart you plan to trade on. However, be warned that scalping requires a minimum spread for the currency pair (the broker's spread). Next, apply Bollinger Bands with a period of 20 and an offset of 3, as well as a 3-period exponential moving average.

Also apply an RSI with a period of 14 and mark the 50 level, and a MACD with parameters of 6, 17, and 8.
If you trade Forex using MT4, we have prepared a special template for you; after launching it, all indicators will appear on the chart automatically. Scroll to the end of the article and download the template. Then install it directly into the MT4 trading terminal.

To do this, you will need to go to the data directory, which you can access directly in the platform by opening the file menu. After the terminal's system folders appear, find the folder named Template and drop the template into it.

To see the changes in the trading terminal, restart it. After restarting, use your mouse to open the additional menu on the chart and select "Scalping Strategy for M1" from the list of templates. If you've done everything correctly, you'll see a chart like this:

Strategy Indicators and Trading Signals

As you may have noticed, the scalping strategy on M1 consists of four indicators: RSI , MACD, Bollinger Bands, and EMA. The exponential moving average and Bollinger Bands serve as signal indicators, while the MACD and RSI oscillators act as trend filters. It's worth noting that all the tools have non-standard settings, so we don't recommend changing anything.

The entire trading process is performed strictly on a minute chart, and market entries should be made directly on a closed candle. It's crucial not to neglect this rule, as the minute chart is very dynamic, and the signal may disappear if you enter within a candle. Now, on to the signals.

Buy signal:

 

1. The red line of the 3-period moving average (EMA) crosses the center line of the Bollinger Band from bottom to top.
2. At the moment of intersection, the MACD indicator should indicate an upward trend, namely, its histogram should be above the 0 level.
3. RSI crosses the 50 mark from bottom to top or is above it.

After the candle closes, enter the position, provided the risk does not exceed 10 pips. A stop order should be placed near the local minimum, and the profit should either be equal to the stop order or placed at the Bollinger Bands boundary. Example:

Sell ​​signal:

1) The red line of the 3-period moving average (EMA) crosses the center line of the Bollinger Band from top to bottom.
2) At the moment of the crossover, the MACD indicator should indicate a downtrend, specifically, its histogram should be below the 0 level.
3) The RSI crosses the 50 mark from top to bottom or is below it.

A stop order should be placed strictly at the local high, and a profit equal to the stop or at the border of the Bollinger Band. It is very important to ignore the signal if the size of your stop order is greater than ten pips! Example:

Since this trading strategy generates frequent signals within a Forex trading session , we recommend trading only with a static lot size, as delays in calculations can significantly impact trade performance.

Finally, we would like to point out that scalping with this strategy requires constant monitoring, and trading should be conducted during active trading sessions (European and American).

Also, pay attention to the spread size, as it needs to be kept to a minimum for this strategy to be effective. For this reason, we recommend using it on ECN accounts .

Download the template – scalping strategy .