Hyper Scalper
📘 Summary
Indicators | EMA (25)
EMA (100)
EMA (200)
ADX (14) |
Suggested Chart Timeframes | 15M, 1H, 1D |
Long Entry | - EMA200 indicates an uptrend.
- EMA25 is above EMA100 and both are above EMA200.
- The ADX must be above 30.
- Price dips below EMA25 but stays above EMA100 and cross back above EMA25 within five candles. |
Short Entry | - EMA200 indicates a downtrend.
- EMA25 is below EMA100 and both are below EMA200.
- The ADX must be above 30.
- Price rises above EMA25 but stays below EMA100 and cross back below EMA25 within five candles. |
Suggeste Exit Signal | - Fixed Stop-Loss/Take-Profit levels (e.g., 1% and 3%).
Or
- EMA25. For long trades, exit when the price crosses below the EMA25 again, for short trades when the prices crosses above.
Or
- A combination of both, having the EMA25 as stop loss and a fixed take profit. |
📚 Details
At the core of it lies the harmonious blend of different Exponential Moving Averages (EMAs) and the Average Directional Index (ADX).
This duo works in tandem to not only identify the trend but also confirm its strength, setting the stage for informed entry points.
Required Indicators
To kickstart this strategy, you will need two key indicators (well, actually four — however, we use the Exponential Moving Average in three different ways):
- Exponential Moving Average 25 (moving average of the last 25 data points. For example, if you are on the daily chart, the average of the last 25 days).
- Exponential Moving Average 100 (moving average of the last 100 data points)
- Exponential Moving Average 200 (moving average of the last 200 data points)
- Average Directional Index (ADX 14): A crucial indicator for gauging trend strength, with the sweet spot above 30.
Chart Timeframes
This strategy is versatile across several chart timeframes, including 15M, 1H, 4H, and daily charts. However, backtests have shown that hourly and daily charts yield the best results.
Entry Signals
Let’s have a look at the entry signals. The strategy provides a clearly defined entry signal for both long and short trades. However, it is important to make sure that all criteria are met before opening a trade!
Long Entry Signal
Short Entry Signal
Obviously, the short entry is the opposite in terms of indicators.
Exit Signal
When it comes to the exit signals, you can have more flexible approaches. However, make sure to define your exit strategy before you enter the trade.
Here are two options:
- Set fixed Stop-Loss/Take-Profit levels (e.g., 1% and 3%). You can backtest the best levels before executing your trade (Crypto OS offers a straightforward feature to backtest your strategies).
- You can also use the EMA 25 as your exit signal. For long trades, exit when the price crosses below the EMA25 again. Accordingly, you close your trade for short trades when the price crosses above the EMA25 again.
- Moreover, you can mix both approaches. For example, you can use the EMA25 as your stop-loss level (which serves as take profits in the best case) and additionally use a fixed take profit level.
Backtest Results
This is the most interesting part when it comes to the strategy. Despite the strategy’s simplicity, backtesting has demonstrated a remarkably high success rate on average.
Depending on market conditions and chosen tokens, success rates of 80% and even 90% have been observed.
How To Apply The Strategy?
All indicators required for this strategy are available on TradingView, making it accessible for traders at all levels.
For those looking for a more direct approach, Crypto OS offers this strategy as a pre-defined signal for more than 200 crypto tokens, simplifying the process even further.