Registered: Feb 2009
Posts: 25

Does anyone trade by buying the new highs and/or selling new lows on a 30 second or 1-minute chart?? I did some back testing and it looks to be fairly profitable scalp play. Just curious to see if anyone has experience with this.

Example: Wait 15 min after open, buy new highs with a 4-5 tick trail. It only looks to be profitable between 9:45-10:30 am EST.

I have not found a way to stay out of false breakouts. Any suggestions?

Thanks.

Registered: Aug 2011
Posts: 1587

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Quote from elcowen:

Does anyone trade by buying the new highs and/or selling new lows on a 30 second or 1-minute chart?? I did some back testing and it looks to be fairly profitable scalp play. Just curious to see if anyone has experience with this.

Example: Wait 15 min after open, buy new highs with a 4-5 tick trail. It only looks to be profitable between 9:45-10:30 am EST.

I have not found a way to stay out of false breakouts. Any suggestions?

Thanks.

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Hey, whats up ?

Did you meant how many floor traders do not trade this scalping style ??? I dont know ??? Thanx...

To avoid false breakouts, you must watch the price in the overall context on all chart timeframes....regarding to support/resistance...and probabliy market turnpoints....
or, you will never understand to pick tops and bottoms correct with a high win rate !!!
Its not easy, but it can be done !!!

Registered: Apr 2003
Posts: 774

It works EOD on stocks at all-time highs. See Eric Crittenden's paper "Does Trend Following Work on Stocks?"

Registered: Aug 2010
Posts: 814

this may work. although i haven't backtested it, just looking visually where entries/exits would have been seems to support the idea. basically you use really tight stops, scale in (in thirds) as the trend continues and exit all at once when the trend ends. you can trail stops/move to BE on a portion if you want to reduce risk however you may/will miss out on trades that pull back and continue. i'm interested in this strategy on this time frame so if anyone has any ideas i'm all ears.

Registered: Feb 2009
Posts: 25

Where would your initial stops be? How do you protect from false breakouts is the biggest problem.

Registered: Aug 2011
Posts: 1587

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Quote from elcowen:

Where would your initial stops be? How do you protect from false breakouts is the biggest problem.

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