Scalping Playbook

Scalping focuses on capturing small price moves with tight trade management. Use this guide to build a disciplined routine that pairs fast execution with structured risk limits.

What scalping means here

Targets intraday windows (1m–5m) with holding periods measured in minutes, not hours.
Edge comes from reaction speed, queue positioning, and tight spreads rather than large directional moves.
Requires consistent latency, pre-defined exit rules, and automated journaling to avoid decision drift.

Pre-trade checklist

Confirm volatility regime: average true range, order book depth, and spread are within documented ranges.
Stick to liquid pairs (top 10 by volume) to minimise slippage at the default position size.
Scan scheduled events (economic releases, exchange maintenance) that can invalidate the playbook.
Align with session bias: Asia, EU, or US market opens should match the strategy's historical outperformance.

Execution rhythm

Stage orders: Pre-set entry, stop, and target levels. Avoid manual clicks under stress.
Trigger discipline: Act only on closed-bar signals; ignore forming bar noise to prevent over-trading.
Immediate review: Log fill quality, slippage, and screenshot the tape to refine queue positioning.
Reset cadence: After three consecutive losses or +0.8% session equity, switch to observation mode for at least 30 minutes.

Tools & data to monitor

Analytics → filter 1m/3m intervals, require ≥250 closed trades, and compare V1 vs V2 for execution drift.
Interval reference → verify latency and ingestion delay stay within the documented ranges (≤60 s on 1m data).
Executed trades → confirm realised fills, fees, and equity curve remain within planned bands.
Glossary & factors → keep indicator parameters consistent across teammates and automation scripts.

Tip: Save analytics URLs per playbook (e.g., “BTC 1m mean reversion”) and annotate them in your team workspace.

Risk guardrails

Risk ≤0.5% equity per trade; re-calc every morning using the day's reference balance.
Max daily drawdown 2% equity or 6 consecutive losses, whichever hits first.
Abort session if average slippage >0.15% or fees exceed 35% of gross PnL over 20 trades.
Record every intervention (manual exit, pause) inside the trade log to maintain auditability.

Never widen stops mid-trade. Scalping edge evaporates quickly when risk parameters drift.

Common mistakes to avoid

Chasing every micro move. Stick to one or two clear setups per session.
Ignoring latency degradation; check execution timestamps whenever fills feel slow.
Revenge trading after a loss streak. Enforce the cooling-off rule automatically (timer or lockout script).
Scalping during macro news spikes. Use the risk calendar and pause 10 minutes before/after key releases.

Next steps

Import executed trades into your journal template and tag them with setup codes (e.g., MR1, BO2).
Weekly: compare strategy score trends against realised PnL to catch decay early.
Iterate factors slowly—adjust one parameter at a time and revalidate over at least 200 trades.