Crypto Scalping Strategy by SAIF

Overview
An optimized scalping strategy designed for cryptocurrency markets, focusing on breakout opportunities with strict risk controls and optional safe compounding features. This strategy combines price action, volume analysis, and multi-timeframe trend confirmation.
Key Features
Breakout Detection System

Identifies significant price breakouts using dynamic channel analysis
Confirms breakouts with volume surge validation
Filters trades based on multi-timeframe trend alignment

Multi-Timeframe Trend Confirmation

Analyzes 1-hour and 4-hour timeframes for trend direction
Only takes trades aligned with higher timeframe trends
Uses long-term moving averages for trend validation

Advanced Risk Management

Conservative default risk: 1% per trade
ATR-based stop-loss placement (2x ATR)
Trailing stop mechanism to protect profits
Minimum profit target before trailing activates
Built-in position sizing based on account equity

Safe Capital Management Options

Fixed Capital Mode: Trade with consistent position sizes
Safe Compounding Mode: Gradually scales position size based on realized profits only
Drawdown Protection: 80% equity floor prevents excessive capital erosion
Leverage Control: 10x leverage factored into position calculations

Technical Filters

Momentum confirmation via oscillator conditions
Directional movement analysis
Volume threshold requirements
Trend strength validation

Position Sizing
The strategy automatically calculates position sizes based on:

Your specified risk percentage
Current ATR volatility
Available leverage
Account equity (with optional compounding)

Trade Management

Entry: Executes on confirmed breakouts with volume and trend alignment
Stop Loss: Placed at 2x ATR from entry
Take Profit: Uses trailing stops that activate after minimum profit threshold
Exit: Automatically managed through strategy exits

Customization Options

Adjustable channel length for breakout detection
Configurable volume multiplier for surge detection
Customizable oscillator thresholds
Flexible ATR period for volatility measurement
Optional compounding vs. fixed capital modes
Adjustable trailing stop parameters

Visual Features

Channel boundaries plotted on chart
Entry signals marked with arrows
Background coloring indicates trend direction
Real-time info table shows:

Current risk level
Compounding status
Capital values
Drawdown protection status



Alert Capabilities
Built-in alert conditions for:

Buy signals (breakout opportunities)
Sell signals (breakdown opportunities)

Important Disclaimers
⚠️ Educational Purpose Only: This strategy is provided for educational and research purposes. It is not investment advice.
⚠️ High-Risk Trading: Scalping and leverage trading carry substantial risk of loss. Cryptocurrency markets are highly volatile.
⚠️ Not Financial Advice: This tool does not constitute financial, investment, or trading advice. Always conduct your own research and consult qualified professionals.
⚠️ Leverage Warning: This strategy uses 10x leverage, which can amplify both gains and losses significantly.
⚠️ Backtesting Limitations: Past performance does not guarantee future results. Real trading involves slippage, execution delays, and emotional factors not present in backtesting.
⚠️ Capital at Risk: Only trade with capital you can afford to lose completely. Never trade with borrowed money or funds needed for living expenses.
Commission & Fees

Commission: 0.13% per trade
Initial capital: $100 (default)
Commission costs are factored into backtest results

Best Practices

Start Small: Begin with minimum capital and conservative risk settings
Test Thoroughly: Backtest across different market conditions and timeframes
Monitor Performance: Track win rate, profit factor, and maximum drawdown
Adjust Parameters: Optimize settings for your specific trading pairs
Use Alerts: Set up notifications to avoid missing opportunities
Manage Emotions: Follow the strategy rules consistently without override

Recommended Markets

High liquidity cryptocurrency pairs (BTC, ETH major pairs)
Assets with clear trending behavior
Markets with sufficient volume for scalping
Timeframes: 1H to 4H charts recommended

Risk Reminder
Scalping requires:

Quick decision-making
Tight risk management
Consistent discipline
Understanding of market microstructure
Proper capitalization


Always practice proper risk management. The strategy includes safety features, but no system can eliminate trading risk entirely. Trade responsibly.