How the strategy works
The bot looks for short bursts of activity where price is already moving, joins the direction of the move, and leaves quickly. This page explains the logic, not a recommended configuration.
Thresholds are settings you choose and test. Nothing here is a claim that a particular value has an edge.
Entry: all conditions must agree
Volume burst
Recent executed volume (a short window) is compared with the typical volume of the minute before it. A burst means the short window is much busier than that baseline and also above an absolute floor, so quiet markets do not trigger on small numbers. The bot needs about a minute of tape before it can compute this at all, and it says so while it warms up.
Swing
The mid price must have moved a minimum distance, measured in basis points, compared with a fixed number of ticks ago. The entry direction follows the swing: it is a momentum rule.
Depth confluence
The order book is checked for imbalance between the bid and ask sides near the top. The imbalance has to lean the same way as the swing. If the book is unavailable, it does not block the trade.
Range gate
Over a rolling window of ticks, the price range must be wide enough. This keeps the bot out of dead, flat markets where a burst is just a few small trades.
Cooldowns
After a signal there is a short cooldown, and after a round there is a longer one, longer still after a loss. Stale prices are ignored: an entry needs a fresh tick.
Exits
Exits are checked on every price update while a round is open.
| Exit | What it does |
|---|---|
| Take profit | Closes when the move in your favour reaches a target distance. |
| Stop loss | Closes when the move against you reaches a hard limit. |
| Breakeven lock and trail | Once the move reaches a lock distance, the stop stops being a loss: it follows the peak at a trailing distance and never sits below a small positive floor. |
| Soft timeout | After a set time, close if the position is no worse than a small tolerance; otherwise allow an extension. |
| Hard timeout | After the extension, close regardless. |
| Feed stale | If the price feed goes quiet while a round is open, close it rather than hold blind. |
Fees matter
The venue's fee model is asymmetric, so the break-even win rate depends on target sizes. The simulator applies a fee model to every dry-run and replayed round, and that cost is included in the net result you see.
Honestly
Momentum scalping is crowded and fees are real. The rules are here so you can test them, not because they are known to work.