Scalping Strategy
A VWAP and EMA pullback scalp for liquid futures and major forex pairs during peak sessions, with strict daily loss limits.
Educational only. No strategy wins every trade. Backtest and demo-trade any setup before risking real money, and size every position so one loss can't hurt your account. Risk disclaimer
Who it's for
Scalping means many short trades held for minutes. Costs (spread and commission) matter far more than in swing trading, so it suits experienced traders with low-cost accounts and very liquid markets like E-mini futures or EUR/USD.
Setup
- Chart: 1-minute for entries, 5-minute for bias.
- Indicators: session VWAP, 9 and 20 EMA.
- Time: the first two hours of the New York session, or the London open for forex.
Rules
- Bias: long only when price is above VWAP and the 9 EMA is above the 20 EMA on the 5-minute chart. Reverse for shorts.
- Entry: on the 1-minute chart, wait for a pullback to the 20 EMA or VWAP, then enter as price resumes in the bias direction.
- Stop: just beyond the pullback swing.
- Target: 1.5R, or the session high/low.
Non-negotiables
- Daily loss limit: stop trading after losing 2R in a day.
- No news trading: stand aside around major releases.
- Know your costs: if spread plus commission is more than 20% of your target, the edge is gone. Compare costs on our broker comparison.
Plan the trade before you take it
Check the reward-to-risk of your setup and size the position so a stop-out costs only what you planned.