Let me introduce you to a Bitcoin scalping strategy using a 1-minute timeframe and Supertrend, EMA, and Stoch RSI.
I found this strategy when I watched Trade Pro videos on Youtube, where he gives a good overview of it. If you want to watch his video, you can do that here.
This strategy includes very high risk, so it should be tested by experienced traders only. Always remember, strategy giving high results on the upside can provide even higher results on the downside.
If you want to try it out, I recommend starting with a paper trading account on TradingView. If you don’t have a TradingView account, you create one here.
So let’s get started.
Before we start testing, we need to add a couple of indicators to our Bitcoin 1 minute chart.
Use standard 200-day EMA. Make sure you use some bright colors. I like to use gold but I’m using white here as the 1-minute chart can get busy with 4 indicators.
Add 3 Supertrends to the chart. I’m using the most popular Supertrend by KivancOzbilgic.
Once you add them, you’re ready to change settings. First some styling. Remove UpTrend Highlighter and DownTrend Highlighter in all of them. You can change this in the settings of the indicator and go to menu Style.
Once you’re ready, we can start changing the actual settings. Go from the top to the bottom.
Set first Supertrend ATR Period to 12 and ATR Multiplier to 3. Untick Show Buy/Sell Signals.
Set second Supertrend ATR Period to 11 and ATR Multiplier to 2. Untick Show Buy/Sell Signals.
Set third Supertrend ATR Period to 10 and ATR Multiplier to 1. Untick Show Buy/Sell Signals.
Here are the first Supertrend settings as an example.
We will be using the default setting for Stoch RSI, no changes are needed.
Once you add all indicators and change the settings, your final chart should look like this.
If you have everything set, it’s time to go and start testing.
If you’re using TradingView Paper Trading to test the strategy, don’t forget to also set commission settings so you’re as close as possible to reality. For example, if you set your commission to 0.0750 percent you will be close to Bybit settings.
Now everything is set, let’s get to the rules of the strategy.
Rule number 1
You can only take longs if the price is above the EMA 200 and you can only take shorts if the price is below EMA 200.
Rule number 2
You can only take a short position when the Stoch RSI goes to the overbought area – so over the 80 – and then crosses down. You can only take a long position when the Stoch RSI goes to the oversold area – so below the 20 – and then crosses up.
Rule number 3
For short positions, two out of 3 supertrends need to be above the entry candle. For long positions, two out of 3 supertrends need to be below the entry candle.
When all rules are met, you can take the position. For S/L settings, it is just above the 2 Supertrends. For T/P, you will be targeting 1.5 RR.
Keep in mind: Always follow the strategy! All 3 rules must be met! There is no reason to get greedy. Bear in mind this is a scalping 1-minute chart. There are 1440 minutes in a day. You will have plenty of opportunities.
I managed to make 15% on an account after a day. However, I will update results here after a month.