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Achieving a win rate of over 90% in trading, especially on a 1-minute timeframe, is

extremely challenging and often unrealistic. The financial markets are highly volatile
and unpredictable, making such a high win rate difficult to sustain. However, there
are some strategies that experienced traders use to maximize their success in short
time frames. It's important to remember that even the best strategies come with risks
and no strategy guarantees success.

Here are some components of a high-probability trading strategy for a 1-minute

timeframe:

1. Scalping Strategy

Scalping involves taking advantage of small price movements and typically requires
a strict exit strategy to prevent losses from eroding small profits. Here’s a basic
framework:

Components:

Indicators: Use fast-moving averages (e.g., 5-period and 20-period EMA), RSI
(Relative Strength Index), and volume indicators.
Entry Signal: Look for EMA crossovers combined with RSI signals (e.g., RSI
crossing above 30 for buys, below 70 for sells).

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 Exit Strategy: Set very tight stop losses (e.g., 1-2 pips) and take profits quickly
(e.g., 2-5 pips).
Volume Confirmation: Ensure there is adequate volume to confirm the move.

2. Order Flow and Volume Profile Strategy

This strategy involves understanding the underlying order flow and volume
distribution to identify potential turning points.

Components:

Volume Profile: Identify high volume nodes (HVNs) and low volume nodes
(LVNs) on a 1-minute chart.
Order Flow Analysis: Use tools to analyze the real-time order flow and
footprint charts.
Entry Signal: Enter trades near the LVNs with confirmation from order flow
(e.g., seeing a shift in order flow towards the opposite direction).
Exit Strategy: Exit near HVNs or predefined risk-reward ratios.

3. Price Action Strategy

Focusing on pure price action can also be effective in such short time frames.

Components:

Candlestick Patterns: Identify key candlestick patterns such as pin bars,

inside bars, and engulfing candles.
Support and Resistance: Mark significant support and resistance levels on
the 1-minute chart.
Entry Signal: Enter on confirmation of price action patterns at key levels.
Exit Strategy: Use tight stop losses and aim for a 1:1 or better risk-reward
ratio.

Components:

Algorithm: Develop or use existing algorithms that exploit inefficiencies in the

market.
Backtesting: Rigorously backtest the algorithm on historical data.
Real-time Adjustments: Continuously monitor and adjust the algorithm based
on real-time market conditions.

Important Considerations:
Risk Management: Never risk more than a small percentage of your capital on
any single trade (typically 1-2%).
Discipline: Stick to your strategy and avoid emotional trading.
Market Conditions: Adapt to changing market conditions; what works in one
environment may not work in another.

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 Technology: Use reliable and fast trading platforms to minimize latency.

Example of a Basic Scalping Strategy:

Here’s a simple scalping strategy using EMA and RSI:

1. Setup Indicators:

5-period EMA (Fast EMA)

20-period EMA (Slow EMA)
RSI (14) with levels at 70 and 30
2. Entry Rules:

Buy: When the 5 EMA crosses above the 20 EMA and RSI is above 30.
Sell: When the 5 EMA crosses below the 20 EMA and RSI is below 70.
3. Exit Rules:

Set a stop loss of 1-2 pips.

Set a take profit target of 2-5 pips.
4. Additional Filters:

Trade during high liquidity times (e.g., major market sessions).

Avoid trading during news releases.

Tools Required

1. Trading Platform with Order Flow Analysis and Volume Profile Tools

NinjaTrader: Provides robust order flow and volume profile tools.

Sierra Chart: Another popular platform for detailed order flow and volume
analysis.
TradingView: Offers volume profile indicators (some features may require
a Pro subscription).
ThinkOrSwim: TD Ameritrade's platform with integrated volume profile
tools.
2. Data Feed

Real-time data feeds are essential for accurate order flow and volume
analysis. Popular providers include:
CQG
Rithmic
IQFeed

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 3. Indicators

Volume Profile: Plots the distribution of traded volume over price levels.
Footprint Charts: Show the distribution of buy and sell orders at each
price level.
Order Flow Indicators: Tools like the Delta Indicator, Cumulative Delta,
and Time & Sales.

Step-by-Step Process

1. Set Up Your Chart

Open a 1-minute chart for your chosen trading instrument (e.g., EUR/USD,
S&P 500 futures).
Add the Volume Profile indicator to your chart. Configure it to display the profile
for the session or specified periods.
Add Footprint Charts if available. Configure them to show buy and sell orders at
each price level.

2. Identify Key Levels

High Volume Nodes (HVNs): Areas on the volume profile where a significant
amount of trading has occurred. These levels often act as support or
resistance.
Low Volume Nodes (LVNs): Areas with low trading volume. Price tends to
move quickly through these areas.

3. Analyze Order Flow

Order Flow Tools: Use tools like Time & Sales, Delta Indicator, and Footprint
Charts to see real-time buying and selling pressure.
Look for shifts in order flow, such as an increase in buy orders after a
downtrend, which could indicate a reversal.

4. Entry Criteria

Support and Resistance: Enter trades near HVNs or key support/resistance

levels identified from the volume profile.
Order Flow Confirmation: Confirm entry with a shift in order flow. For
example, if price approaches an LVN and you see a surge in buy orders,
consider entering a long position.

Example Entry Signal:

Price approaches a key HVN.

Footprint Chart shows a surge in buy orders at this level.
Delta Indicator confirms positive buying pressure.

5. Exit Strategy

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 Profit Targets: Set profit targets near the next HVN or based on a predefined
risk-reward ratio (e.g., 1:2).
Stop Loss: Place a stop loss just below the entry level for long positions or
above for short positions, using recent price action as a reference.

Example Exit Strategy:

Enter a long position near an HVN with a stop loss just below the HVN.
Set the profit target at the next significant volume profile level or 2x the risk
distance.

6. Risk Management

Always use stop losses to protect against unexpected moves.

Limit the risk to a small percentage of your trading capital per trade (e.g., 1-
2%).

7. Monitor and Adjust

Continuously monitor order flow and volume profile during the trade.
Adjust stop losses and profit targets as necessary based on evolving market
conditions.

Example Trade Scenario

1. Setup:

Instrument: EUR/USD
Timeframe: 1-minute chart
Volume Profile and Footprint Chart added
2. Identify Key Levels:

HVN at 1.1200
LVN at 1.1180
3. Order Flow Analysis:

Price approaches 1.1200 HVN

Footprint Chart shows increasing buy orders
Delta Indicator shows positive delta
4. Entry:

Enter a long position at 1.1205 (just above HVN)

Stop loss at 1.1195 (10 pips below entry)
5. Exit:

Set profit target at 1.1225 (20 pips above entry)

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 6. Risk Management:

Risking 10 pips for a potential 20 pips profit

Ensure risk per trade is within 1-2% of trading capital

Conclusion
The Order Flow and Volume Profile Strategy requires a deep understanding of
market mechanics and the ability to interpret real-time data. Using the right tools and
maintaining discipline in execution are critical for success. Always backtest your
strategy and refine it based on historical data before applying it in a live trading
environment.

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