Scalping

Scalping seeks small price moves in briefly held trades. IG Academy describes it as an intense style with frequent entries and holding periods usually measured in seconds to minutes. This is neither a universal time standard nor proof of profitability. For Bitcoin, a rule must separately specify the market, signal, size, exit and costs; the style's name does not replace a verified strategy. [1]

Specify the instrument, venue, session, result currency and data timestamps. Alongside entry and exit fees, spread, slippage, the impact of your own order and opportunities that remain unfilled matter. CFA Institute distinguishes delay costs, execution costs and opportunity costs associated with the unexecuted portion of a trade. A reference price or last trade is not automatically a price available for your quantity. [2]

Coinbase Exchange describes matching by price and then by the time the order was received. Queue position can therefore matter at the same price. A displayed price touch alone does not prove that your quantity filled. CME Group notes that a limit order can remain unfilled. Check status, partial fills and cancellations under the particular venue's rules; one market's rules are not automatically another's. [3] [4]

Distinguish signal creation, order submission, receipt and fill. In historical simulations, TradingView infers intrabar movement from available data; finer data can change the sequence and prices of simulated fills. OHLC alone does not prove an executable entry and exit in the required order. Latency and missing information do not disappear when you choose a shorter candle. [5]

Evaluate not only the frequency of profitable trades but also the sizes of gains and losses and total costs. One larger loss can outweigh several small wins. TradingView therefore separates the proportion of profitable trades, average outcomes and drawdowns. Selected winning screenshots do not describe the full distribution of outcomes or future expected returns. [5]

Predefine position size, invalidation, time-based exit and a rule to halt further entries after a loss or malfunction. Sending a stop or closing order is not proof that exposure has ended. CME describes different stop-order conditions and possible worse execution; CFTC warns that leverage increases loss risk in virtual currencies. Neither short holding periods nor automation guarantee a loss limit. [4] [6]

Record all signals, orders, rejections, partial fills, fees and remaining open positions. Assign costs to individual trades and their currency. If results already use actual fill prices, do not deduct the same spread or slippage again. Conversely, when using reference prices, do not omit those differences. Keep the opportunity cost of an unfilled trade separate from cash fees actually charged. [2]

Choose rules using information available at the time and evaluate them on a separate period too. CFA Institute highlights look-ahead bias, structural breaks and limitations of historical simulation. Examine sensitivity to higher costs, delays, lower liquidity and missing fills. Unsuccessful periods must remain in the result; a favorable test alone does not prove a future Bitcoin trading edge. [7]