MAYARI CAPITAL
A M1 SCALPING STRATEGY
One of the developed scalping strategy that has been tested and proven by
the author of this material.
Note: The contents herein are for educational and entertainment purposes only, and should not be
taken as a financial investment advice. The informations provided are based on the personal
experiences of the author within the market. The data inside does not guarantee result, but merely
a guidance.
Copyright © 2021 Mayari Capital
Telegram: https://t.me/mayaricapitalfree
TABLE OF CONTENTS
Scalping And Its Nature ………………………………………………………………………………….. 3
Timeframes ……………………………………………………………………………………………………. 4
Indicators ………………………………………………………………………………………………………. 7
Position Size ………………………………………………………………………………………………….. 10
Calculating Position Size ……………………………………………………………………….. 11
The Strategy Itself …………………………………………………………………………………………. 13
Long Set Up ………………………………………………………………………………………… 14
Short Set Up ……………………………………………………………………………………….. 16
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SCALPING AND ITS NATURE
Before anything else, let’s first study what scalping is and how it works.
Scalping is a trading technique wherein a trader buys or sell a pair of currency or crypto, and hold it
for a short period of time attempting to make a profit off of the market.
This strategy suits those personalities that can make quick decisions on the very last second, handle
stress, and act accordingly to their plan or decisions without hesitations.
Scalp traders tends to be impatient in nature and that applies on them when making profit as well.
They expect the trade they took that it should by immediately profitable, and exit as quickly as
possible at the signs of rejection or when a trade goes against them. Usually they take up to 100
trades per day.
I advise you guys to know how and who you are as a person firstly, and see if this type of strategy
compliments you.
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TIMEFRAMES
For this scalping strategy, we will be applying the top-down analysis.
Before you trade, you should always look at the big picture and go with it. As it has the stronger
pull for the day.
Top-Down Analysis
1. Trend (H4/H1)
Refer to H4 and H1 charts to know what is the current trend.
This can be done by identifying a series of lower highs and lower lows for a downtrend,
and higher highs and higher lows for an uptrend.
Moving averages are good trend indicators to use as well to identify trend.
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2. S/R levels (H1/M15)
Once the trend is identified, look for important levels such as support, resistance, and
trendlines. This will filter out unnecessary zones/levels, and ables you to focus on certain
important zones.
Do these on H1 to M15 timeframes
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3. Patterns (M15/M3)
Most of the time, different kinds of pattern are present which will make it easier for us to
note important key levels.
It is a must to identify a pattern for us to be guided on what position will be more
favoured.
4. Entry (M1 Chart)
This is going to be ONLY timeframe we will be using for ENTRY.
With all the data we have gathered from higher timeframes, we are now aware of the
trend, important levels and zones, support, resistance, trendlines, and pattern.
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INDICATORS
We are going to use three indicators in this strategy.
Don’t be overwhelmed, I will teach the process and steps in order to have this strategy executed
successfully. This indicators will be used in entering and exiting a trade, combined with price action.
Hence, with M1 chart only.
1. RSI
In this indicator, we will only move forward on the rest of the process once a coin is
above 70 or below 30. This is to ensure a higher quality trade. Otherwise, wait.
RSI settings for this strategy:
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2. MACD
MACD crossing over and histogram flipping to the other side is going to be one of our
friend in this strategy.
We will focus on both of these.
MACD settings for this strategy:
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3. Moving Average Exponential (EMA) 5
EMA 5 is an important indicator to get the best entry with this strategy.
It will look like it is just one with the candles themselves.
EMA settings for this strategy:
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POSITION SIZING
Before executing this strategy, we need to calculate our position sizing and leverages first. This is
going to be a long one, but I will explain it as easy as possible as this is very important.
This is scalping, therefore we need to eliminate any chances of errors and think as quickly as
possible.
Expect small gains but a numerous of trades in a day, and strictly follow your trading plan.
With this, we will apply the risk management method.
Study 1-2 coins to scalp for the day and see how much percentage is its move.
For example:
Studying the movement of SNX/USDTP pair.
Chart: M1
Here we can see that our scalping set up can generate a profit of 0.4% off of it, with a possible loss
of 0.2%
From here we will proceed on calculating our margin size and leverage following the risk
management method.
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Calculating Position Size
Let’s say that our account size is $1,000
Risk 2% of the account size, giving us a maximum risk per trade of $20
Reward should be double or more of the risk, now according to our loss above, our minimum profit
taking per trade is $40
Note: just apply the 1:2 or more risk to reward ratio. Reward should always be double or
more compare to the possible loss.
Now to calculate our position sizing, from our $1,000 account let’s take a $500 margin size per
trade with a leverage of 10x.
Position size = margin size x leverage
$500 x 10 = $5,000
so with this, we will be trading a $5,000 position size.
With the reward of 0.4% and a risk of 0.2% given by the information above.
Our possible profit and loss per trade would be:
Profit = position size x reward %
Loss = position size x risk %
= $5,000 x 0.4%
= $5,000 x 0.2%
= $20 profit per trade
= $10 loss per trade *our maximum loss per trade is $20*
According to the loss, we still have a room to add more leverage or margin size. Now that is entirely
up to you if you’d like to risk more, as long as it respects the risk management method.
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Let’s say we decided to take more risk, increasing our leverage up to 15x with the same margin
size.
Position size = margin size x leverage
= $500 x 15
= $7, 500 is our position size
Profit = position size x reward %
Loss = position size x risk %
= $7,500 x 0.4%
= $7,500 x 0.2%
= $30 profit per trade
= $15 loss per trade
From here, let’s assume that we are satisfied with this position sizing set up.
Now hypothetically, we average of taking 30 scalping trades per day.
Out of those 30 trades, we lost 15 times and won 15 times as well. A 50% win rate.
Total profit = wins x profits per trade
Total loss = loss x profits per trade
= 15 x $30
= 15 x $15
= $450 total profit
= $225 total loss
That gives us with a total profit of the day with:
Total profit of the day = total profit – total loss
= $450 - $255
= $255 clean profit per day
According to the total profit of the day, we are growing our account 25.5% per day.
Note: these are just examples. All of the numbers varies, and is not set in stone.
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THE STRATEGY ITSELF
Assuming we have done everything that is needed, let’s start on how this scalping strategy machine
works.
Here are the things you need to follow respectively:
Pre-trade
Pick a pair to trade, apply the top down analysis method. Go with the pair that gives you a
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maximum set up for the day.
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Calculate your position sizing according to the pair.
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Set up your indicators.
Entry (refer to M1 chart)
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See if the price is near support/resistance, or any important zones.
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Then, RSI should be either overbought or oversold.
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After RSI, look at MACD is it’s about to crossover or is crossing over.
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See the volume coming in.
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And lastly, enter or execute the trade once the candle closed above EMA5.
Exit
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Use important key levels for profit taking.
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LONG SET UP
Pair: BNB/USDT
Chart: M1
Position: LONG
We are sitting at a support.
1st RSI below 30
2nd Candle closed above EMA 5
3rd MACD about to cross over
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The play for this set up:
1. Entry can be taken as soon as the close of the candle happen. It should be as near as where
the close of the previous candle is.
2. Stoploss can be set below the previous candle’s low, or on the previous candle of it.
3. Our Take Profit can be based on any important key levels.
Personally, once the trade moves my way, I usually then set my stoploss at entry.
Also, at the first sign of rejection I tend to take some of the profits along the way, and apply a
trailing stoploss technique.
Our goal here is to make money in a very short period of time, get to keep it, and give back as little
as possible.
Note: as a scalper, we should be strict with our rules, don’t let our emotions get over us, follow the
plan, and think and move as quickly as we can.
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SHORT SET UP
Pair: BNB/USDT
Chart: M1
Position: SHORT
We are sitting at a support.
1st RSI above 70
2nd Candle closed below EMA 5
3rd MACD about to cross over
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The play for this set up:
1. Entry can be taken as soon as the close of the candle happen. It should be as near as where
the close of the previous candle is.
2. Stoploss can be set above the previous candle’s high, or on the previous candle of it.
3. Our Take Profit can be based on any important key levels.
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