Scalping with AI Bots: High-Frequency Basics

Scalping is the Formula 1 of trading. It's fast, dangerous, and expensive. The goal is to make tiny profits (0.5% - 1%) hundreds of times a day.

Why You Need a Bot

A human cannot click fast enough.

• Reaction Time: A bot reacts in 50ms. You react in 500ms.
• Fees: Scalping requires calculating fees instantly. If your profit is 0.5% but fees are 0.6%, you lose. The AI calculates "Net Profit" before every trade.
• Endurance: You get tired after 2 hours. The bot scalps 24/7.

Key Indicators for Scalping

1. StochRSI: Fast-moving momentum oscillator.
2. Bollinger Bands: Buying when price pierces outside the band, expecting a "snap back" to the mean.

The Risks

• Slippage: In low liquidity markets, your buy order might push the price up. Pick liquid pairs (BTC/ETH).
• API Latency: You need a fast connection. Read our Security Guide on API optimization.

Is it For You?

Scalping generates consistent small wins but requires Strict Risk Management. One bad trade can wipe out 50 small wins if you don't use a Stop Loss.