Cryptos

Aggressive Scalping Crypto Strategy: How to Win?

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Cryptos are inherently owned with high-powered volatility. Still, traders may generate profit in plenty of ways. The most successful traders are the ones who are not afraid of taking risks. Also, the ones who dedicate their time to observing the price movements and trying their hand at risky trading methods benefit from scalp trading. They also recommend scalping as one of the advantageous options.



In the coming section, we will discuss scalping trading and its functions and highlight several tips on it. The tips will support you in developing a robust foundation of crypto trading and gain benefits.

What is scalping trading? 

It is a powerful trading method where market participants open and closes various asset classes while simultaneously purchasing and selling on multiple platforms.

This method comprises initiating and transforming the share to cash regardless of impacting the current market price. However, it allows traders to exploit the minor variants of currency prices in shorter time frames. It is the process that makes sure traders may gain profits no matter if the bid price stays stable or are voluntarily keen to take the market prices.

How to trade using an aggressive scalping crypto trading strategy? 

Every trader composes their trading technique to obtain profit as high as possible. Still, sometimes market participants may share and utilize several basic trading fundamentals. However, the aggressive scalping strategy originated from the real-time technical analysis since the trader minimizes the time for analyzing the market fundamentally.

While applying the method, scalpers open positions roughly once every 5-10 minutes. On the other hand, the M5 time frame is deemed the most advantageous since it goes with most strategies. Also, it is responsive to the analysis and inevitably increases the chance of likelihood.

Furthermore, manual and automated aggressive crypto scalp trading procedures are distinct. However, to open and close the positions in time, aggressive crypto traders must trace the market movements to obtain profit from an exchange. The trader has to diligently concentrate on the market movement and monitor the trades if they are intended to comprehend manual aggressive crypto trading.

A short-term trading strategy 

In this strategy, we will utilize the 2 line MACD indicator to identify the crossovers. We will add the dynamic level of 20 EMA to determine the market’s proper entry and exit points. However, we will look for trade at only the M5 time frame as our trading approach will be very aggressive.

Bullish trade scenario 

Short-term bullish trade scenario

Short-term bullish trade scenario

Entry 

Look for a buy entry when the price breaks above the dynamic level of 20 EMA. Besides, the MACD indicator lines have a bullish crossover below the 0.00 level.

Stop-loss 

Place the stop-loss order below the last swing level with at least a 5-10 pips buffer.

Take profit 

Take the profit by calculating at least a 1:3 risk/reward ratio. Or else, you can take the profit when the price breaks below the dynamic level of 20 EMA with a bearish candle.

Bearish trade scenario 

Short-term bearish trade scenario

Short-term bearish trade scenario

Entry 

Look for a sell entry when the price breaks below the dynamic level of 20 EMA. Besides, the MACD indicator lines have a bearish crossover above the 0.00 level.

Stop-loss 

Place the stop-loss order above the last swing level with at least a 5-10 pips buffer.

Take profit 

Take the profit by calculating at least a 1:3 risk/reward ratio. Or else, you can take the profit when the price breaks above the dynamic level of 20 EMA with a bullish candle.

A long-term trading strategy

This strategy is mainly based on the simple two-MAs crossover method. This MA strategy is straightforward and reliable because it gives an idea of the trend reversal of the market.

First, we have to identify the market momentum using the 8-period MA and the 21-period MA. After that, we will look for the indicators to cross and give a reversal signal to enter the market. However, we will look for trade at only the H1 time frame for the long-term trading strategy.

 

Bullish trade scenario 

Long-term bullish trade scenario

Long-term bullish trade scenario

Entry 

Look for a buy trade when the 8-period MA crosses over the 21-period MA from downside to upside and the price has an impulsive bullish candle close above the 8-period MA.

Stop-loss 

Place the stop loss order below the last swing level with at least a 5-10 pips buffer.

Take profit 

Take the profit by calculating at least a 1:3 risk/reward ratio. Otherwise, you can take the profit when the price has a bearish candle close below the 21-period MA.

Bearish trade scenario 

Long-term bearish trade scenario  

Long-term bearish trade scenario

Entry 

Look for a sell trade when the 8-period MA crosses below the 21-period MA from upside to downside. The price has an impulsive bearish candle close below the 8-period moving average.

Stop-loss 

Place the stop-loss order above the last swing level with at least a 5-10 pips buffer.

Take profit 

Take the profit by calculating at least a 1:3 risk/reward ratio. Otherwise, you can take the profit when the price has a bullish candle close above the 21-period MA.

Pros & cons

👍 Pros 👎 Cons
  • It is possible to automatize scalping with a trading framework effortlessly.
  • Scalping demands higher transaction costs.
  • It can be used both on the upside and downside market direction.
  • Traders have to utilize more leverage to earn profits.
  • Scalping is associated with a lower level when it comes to market risks.
  • Scalping can be time-consuming and back-breaking for traders since it demands constant monitoring.

Final thoughts

Finally, knowing the scalp is significant if you are keen on crypto trading, especially if you consider becoming a day-trader. On the other hand, learning the basics of scalping is vital. Then traders may distinguish benefits and keep away from the risks related to scalping.

However, two crucial features make scalping comparatively profitable to crypto investors; one is practical market insights, and another is making small moves. Adhering to efficient strategies is the key to turning your small gains into massive profits.

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