BTC 15m Long Scalp Strategy
This is a basic guideline on how to start using the strategy. Ideally, you will optimize it over time based on your needs and experience.
This is a basic guideline on how to start using the strategy. Ideally, you will optimize it over time based on your needs and experience.
The strategy is based on three fundamental pillars: Consortium Momentum indicator for the entry trigger, PMARP indicator for taking profit and horizontal levels (range lows in this case) for risk management / invalidation. The following are the basic parameters and conditions of the strategy:
Conditions for entry are: - Consortium Momentum < 38.2 - First tick white upon closure Condition for taking profit: - PMARP > 77 on closure Risk management conditions: - 15min close below range low - Is OK for price to trade below this level as long as it does not close a 15min candle below it - If price close below, just market close. Set up failed, on to the next
The parameters above are just the bare minimum for the strategy to work. After using this strategy for many months I have identified in which situations it is most likely to fail.
- Avoid playing this strategy on Thursdays and Sundays. Very inconsistent results these two days during the backtesting (last 3 months of Price Action)
- Only use this strat on an uptrend, at minimum on the 6H. How to know if price is in a 6h uptrend? Just put a 55 EMA and a 21 EMA, if the 21 is above the 55 price is in a uptrend on this timeframe.
- I like to TP if PMARP go > 77 intracandle. I dont wait for candle close. Maybe I miss some profit but I 100% securing the position.
- DCA entry: Do 40% of intended position on the entry trigger, 30% at the mid point between entry and invalidation and the rest (30%) as close to the invalidation as possible. Sometimes it just go straight up but that is ok, we want to minimize risk not catch the whole move.
- Just to be safe in case of unexpected high volatility use max SL: 3.6%. Max TP: 2.6%. Probably neither of these two orders will ever be touched. Most likely the price will close below the invalidation and never reach SL before you manually close it and take the L. Same with TP and PMARP exit signal (>77).
- If PMARP is > 40 at the time of the entry trigger, don't enter the position. Likely to fail.
- If PMARP has been recently at extreme lows (vertical blue lines) dont take a trade on that scenario or even the first entry signal after that scenario. Wait for PMARP to bounce a couple of times to play the setup or simply wait for a better setup.
- Dont enter the trade if it gives entry signal and your previous range low (risk management) is above the entry. You are basically longing against resistance in that case. Price most likely to do a bearish retest of the level and drop further down.
- Use limit orders for entry as you going to save a lot on trading fees. Also exit with limit if possible but this is not always the case if you want to be strict with the TP timing and candle close. - Usually if a trade takes more than 7-8h is likely to fail, but this is not always true so is a consideration you need to make. I usually cut the trade if it takes that long.
That is all for the strategy, if you have any questions you can ask me on the CK Discord at any time (Fuzii#8416)
TradingView link to the free indicators used on this strategy: - PMARP: - Lux Algo for Range Low / High identification in case you dont know how to do it:
