The minute chart is often the key cause of losing money at trading. Analyzing the 1-minute chart might create a steady flow of adrenaline but it can cause massive trouble. The reason for an adrenaline rush in human life is nothing but the expectancy to see the unexpected. So, those who are having such an adrenaline rush while making trades in the 1-minute chart have a lot to learn about this market. Trading is often termed as the most relaxed business in the world. Unless you can do it in a proper manner, you will become a new loser in the community.
The intermediate traders know the risk associated with scalping the 1-minute chart. But what if we tell you that you can offset the risk by using trading bots? What if the bots take care of the key steps and you just take decisions by seeing the 1-minute chart? In the past, it would have sounded ridiculous but today, it’s very much possible. The bots can be designed to scalp the 1-minute chart with a high level of precision. In fact, you might be able to win more than 90% of the time using a smart scalping bot.
As a scalper, 1 minute is the lowest time frame possible where you can take the trade. So, you must know how to scalp with the bots and take advantage of 1-minute price fluctuation. Let’s dive into the details and learn to scale a 1-minute chart with smart bots.
Phases of the trend
There are four critical phases in a trend. We all know about the bullish and the bearish movement. Everyone tends to forget about the bearish and bullish retracement phase. But to ride a trend, we need to know more about the retracement phase. Once we can analyze the retracement phase with a high level of accuracy, our entry will be much more precise. Usually, the retracement takes place based on a Fibonacci ratio. The position traders use the Fibonacci retracement tools to find these levels. At scalping, we can’t rely on this tool as swings highs and lows are created on a frequent basis.
So, how to cope with such a drastic change in the price? Well, we need to use trading bots that can deal with the Fibonacci series. The bots will draw important trading levels by analyzing the trend. Those levels are more like the endpoint of the retracement. So taking trades on such levels is more like scalping the 1-minute chart with the trend.
Analyzing the chart pattern
Analyzing the chart pattern is a powerful way by which you can ignore some of the retracement levels drawn by Fibonacci trading bots. The chart pattern works perfectly fine when the traders execute the trade to make money at major reversal. The endpoint of the retracement might be a critical support level as well as the neckline. So, if you take the trades on such levels, you might lose the trade. However, avoiding such entry is very easy if the bots have the ability to recognize the major reversal pattern.
The rookies might think they will take trades on the reversal pattern and earn more money. They forget the fact, two potential trade setups are present at that instant. So favoring one reading of the bots and ignoring the other one is a very big mistake. In fact, this can cause the traders to blow up the account while scalping in the 1-minute chart.
Dynamic evaluation of risk exposure
The 1-minute scalping system requires you to execute many trades per day. You might have to lose 3 -4 trades in a specific session and might recover the loss in the next session. But such ups and downs require precise adjustment of the lot size. Usually, traders fail to calculate floating and most recent loss in scalping and end up with emotional actions. Having a bot that can analyze the dynamic risk exposure level is a great way to improve your win rate.
Very few traders have the ability to evaluate the risk in a dynamic way. It’s very easy to become overconfident after winning the trades. In fact, even if we lose a trade, we increase the risk to recover the loss. In both cases, the risk is getting higher. But the scalping bot can help us to reduce the risk when we are having some trouble adjusting to the market dynamics.
Strictly follow your bots when it comes to risk management policy. You know the machines don’t have any emotions. And taking the trades without having the emotional attachment is a great way to win trades in the 1-minute chart.