The 1-minute strategy in forex is a fast trading method where you buy and sell within minutes using a 1-minute chart. It is made for quick trades that aim to grab small profits many times a day. This strategy needs speed, focus, and strong risk control.
Key Takeaways
- The 1-minute strategy uses the 1-minute chart for fast trades.
- It aims to capture small pip moves with tight stops.
- It needs speed, discipline, and strong focus.
- Risk is high because losses come quickly.
- Best for experienced traders, not beginners.
What the 1-Minute Forex Strategy Is All About
The 1-minute strategy is a fast-paced trading style called scalping. Traders enter and exit trades quickly to grab small profits from tiny price moves. On the 1-minute chart, every candle shows just one minute of price action, which makes this style rapid and intense.
While swing traders hold trades for days and aim for large profits, 1-minute traders focus on speed and repetition. They might earn 5–10 pips per trade, but by doing this many times during an active session, small wins can grow into decent gains.
To make this work, a trader needs:
- Quick decisions: Hesitation can cost you. On this chart, things change in seconds.
- Fast execution & tight spreads: High spreads kill profits, so you need a broker with low costs.
- Strict risk control: Without stop-losses, one bad trade can erase the gains from five good ones.
Example: You spot a support bounce on EUR/USD. You enter a buy trade with a 5-pip stop and an 8-pip target. You close the trade in a few minutes. Repeat that 10 times during London hours, and you’ve built a profitable session.
Key Tools and Indicators for the 1-Minute Strategy
Because the 1-minute chart moves so quickly, traders rely on simple indicators to spot fast setups. The goal is to find short bursts of movement and then jump in and out before the market changes direction.
3 Common tools used in this strategy
- Moving Averages (MA): Show short-term trend direction. If the price is above the MA, the trend is up.
- Bollinger Bands: Measure volatility. Price breaking outside the bands often signals a fast move.
- RSI (Relative Strength Index): Helps spot overbought or oversold conditions for quick reversals.
Example Setup
- Price crosses above a 10-period moving average.
- RSI confirms upward momentum.
- You enter a buy trade with an 8-pip target and a 5-pip stop.
- Repeat during active hours for more opportunities.
Why Traders Like the 1-Minute Strategy
This approach isn’t for everyone, but for those who love action, it has some big advantages:
- Plenty of Opportunities: You can take multiple trades in a single session.
- Quick Feedback: No waiting all day; you know the result of a trade in minutes.
- Small Moves, Big Impact: 10 trades at 5 pips = 50 pips. That adds up fast.
- Time Flexibility: You can hit your daily goal in an hour and be done.
The Hidden Dangers of Scalping at High Speed
Fast trading means fast mistakes, especially without discipline. Here’s what makes this strategy risky:
- Stress & Mental Fatigue: Watching every tick of the chart for hours can burn you out.
- Overtrading: So many setups can tempt you to trade everything, even bad ones.
- High Trading Costs: If you’re only targeting 5 pips and your spread is 1 pip, you’re giving away 20% of your profit per trade.
- One Mistake Can Wipe Out a Day: Lose 20 pips on one bad trade? That could cancel out four wins instantly.
Best Times of Day to Use the 1-Minute Strategy
This strategy works best when the market is active, liquid, and moving quickly. Since your profit targets are small, you need fast momentum and low trading costs.
Top Sessions for 1-Minute Scalping:
- London Session (8 AM – 12 PM GMT): The most active session for EUR, GBP, and USD pairs. Tight spreads and fast movement = a scalper’s dream.
- London–New York Overlap (1 PM – 4 PM GMT): Both major markets are open. Big breakouts and high volume make this a top window for short-term traders.
- Asian Session (11 PM – 7 AM GMT): Generally slower, especially for EUR and GBP. Price tends to move in tight ranges, which makes it harder to find clear, fast setups.
Example: During the London open, you might get three clean breakout trades in one hour. But during the Asian session, you could wait hours for just one decent setup.
Final Thoughts on the 1-Minute Strategy in Forex
So, what is the 1-minute strategy in forex? It’s a fast scalping method that uses the 1-minute chart to capture small moves. While it offers many chances to profit, it also carries high risk if emotions and risk aren’t controlled.
With brokers like Defcofx, offering ultra-low spreads, 1:2000 leverage, and lightning-fast withdrawals, traders get the tools they need to test short-term strategies safely and effectively.
Open a Trading Live AccountFAQs
The 1-minute strategy in forex is a fast way to trade using the 1-minute chart. Traders open and close trades within seconds or minutes. It focuses on small moves in price and needs quick decisions, fast execution, and strong control over risk.
Yes, but it’s not easy. The 1-minute strategy can be profitable if you stick to a plan and manage risk well. Many people lose because they rush or trade too much. With practice and discipline, small wins can grow over time.
Pairs like EUR/USD and GBP/USD are best for the 1-minute strategy. These pairs move a lot, have tight spreads, and are very active during major trading sessions. This makes it easier to get in and out of trades quickly.
No, not at first. The 1-minute strategy is fast and can be stressful. It’s better to start with longer timeframes like the 1-hour chart. Once you feel confident, try the 1-minute method on a demo account before risking real money.
You can start with a small amount, even $100, if your broker offers micro lots. But for better control and flexibility, starting with $500 or more is safer. This gives you room to manage risk and avoid losing your entire account quickly.
You’ll need a fast platform, low spreads, and tools like moving averages, RSI, or Bollinger Bands. A good broker like Defcofx, quick execution, and reliable internet are also important. Without these, you may miss trades or lose because of delays.
Defcofx offers what scalpers need: spreads from 0.3 pips, leverage up to 1:2000, no commissions, and lightning-fast withdrawals in 4 hours. Their low-cost, high-speed platform is perfect for fast trading styles like the 1-minute strategy.
Defcofx Forex Articles You Shouldn’t Miss
Discover powerful forex strategies in these top reads from Defcofx.