Prateek Jain

Strategy Playbook

Momentum Scalp

Pending Backtest

A high-frequency 5-minute scalping strategy that captures quick momentum bursts before they fade.

Deep Dive
The Momentum Scalp strategy addresses the core problem identified by the hourly Momentum Swing strategy: by the time momentum is confirmed on 1-hour candles, the move is over. By dropping to 5-minute candles, the strategy can detect momentum bursts within minutes of their initiation rather than hours. A 5-minute candle that closes with a significant price move and volume spike still has momentum to capture on the next few candles. The faster timeframe fundamentally changes the strategy's edge: instead of trying to catch multi-hour trends (which rarely follow through in crypto), it targets 15-30 minute momentum bursts — quick directional moves that happen many times per day. The strategy cannot be backtested because the current data pipeline only provides hourly OHLCV candles. Implementing this would require ingesting 5-minute historical data — 12x the data volume of the hourly dataset. Key considerations: higher trade frequency means commission costs become critical (even 0.1% per trade adds up across hundreds of daily trades), execution speed matters more (market orders need to fill within seconds), and the position sizing must be smaller to accommodate the tighter stop-losses typical of scalping. This is the most promising untested strategy — it addresses a proven failure mode with a theoretically sound solution.
Parameters
Timeframe:5m candles
Style:Quick momentum scalps
Hold time:15-30 minutes
Required External Data

Sub-hourly (5-minute) candle data — the current data pipeline only fetches 1h candles. Needs 5m OHLCV history.

Backtested on hourly OHLCV data across 65+ symbols from Jan 2020 to Mar 2025 — $10,000 initial balance — 0.1% commission — 0.05% slippage

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