Advise me on R:R for scalping 0.02 and 0.03

Discussion in 'Risk Management' started by birdman, Jul 26, 2018.

  1. trader99

    trader99

    I'm beginning to believe in scalping. I lose every time when I try to predict and hold long term. I think if you are willing to risk a little more and wait longer you can get more than one tick. On NQ at least, you can easily get a few points! At least in this volatile market. I've been sim scalping/trading NQ. I think with just 5-10 lots per RT you can make several thousands a day without a sweat. And that's not being superaggressive. If you want to be more active that numbers go up. But I understand you gotta account for losses.


    At least for me, I don't believe in 1 tick profit. Occasionally, I get out for 1 tick when I see things are not going my way. Better to exit for small profits then let losses come.

    For best of both worlds, you can scalp for 1-2 hours in the morning and go about your job. Stability of income plus bonus kicker from scalping.

    Not there yet with the multiple thousands per day on real account. Practicing and honing my scalping skills on sim first.

    Tradovate looks interesting. At this level of activity, IB commissions will be prohibitive.
     
    #11     Jul 26, 2018
  2. trader99,

    I agree, That waiting...hoping...etc...not for me.
    I do not even use charts anymore!

    ES
     
    #12     Jul 26, 2018
  3. birdman

    birdman

    1) I have a living, am just bored and wanting to learn intraday.
    2) Note i said usually 5000 shares and when i gain confidence 10,000.
    3) Broker gets 6.95 per side regardless of size.
    4) I never give trading advice. Not qualified in the least. Thread title was "Need advice".
    5) I've been intraday trading for 7 months now. I'm profitable and have had a lot of fun learning. I'm not at the level to make a full time income yet, but i don't have to. I'll keep plugging away.
     
    #13     Jul 26, 2018
    trader99 likes this.
  4. I think the best advice that I can give is is to take out 50% of your R:R and spend it! Let the other 50% ride AFTER LABOR. Always pay yourself first.

    ES

    P. S. I am flat now...I am up 75 bucks thus far after commish. I am typing this in between simulated trades! :rolleyes: Folks this is a lot of patience. Day trading is better. But I am training now and must find my way. For the first time in decades I have found a way to trade and a way to enter that truly can change my life...funny I have told Wifey this before :p Mrs Savant is a member and we may hear from her....but not tonight.
     
    Last edited: Jul 27, 2018
    #14     Jul 27, 2018
    birdman and fan27 like this.

  5. I meant money not a living.

    I still think you should go for more than .02 target and stop because even with a .01 spread you could get stopped out pretty quick... For every loss you will have to have 2 3 wins just to get ahead.
     
    #15     Jul 27, 2018
  6. 2rosy

    2rosy

    what stock is liquid enough to allow buying/selling 5000+ shares with no impact?
     
    #16     Jul 27, 2018
  7. birdman

    birdman

    The top 10 average volume stocks and etfs. Most often top 20. Take the top 20 from each day and put in a portfoilo at SeekingAlpha.com Do it every day for a week or 2. Portfolio will show both volume and average volume. Cull the stocks and etfs that don't suit you, until you are left with 5 or 10 with consistent high volume. I see trades of 30,000 at a time that do not impact.
     
    #17     Jul 27, 2018
  8. 2rosy

    2rosy

    you can see time and sales for different stocks/etfs. average trade is less than 300 usually around 100

    https://www.nasdaq.com/symbol/spy/time-sales
     
    #18     Jul 27, 2018
  9. birdman

    birdman

    You make a good point and i think you are probably right. I have a lot to learn.

    I also think i must have did a poor job of wording my original post. My target and stop have not been 1:1. My stop has been double and larger than my target, which i was asking for comments upon. I was able to glean some info about R:R. The factor i didn't bring up is, my target and stop amount changes with instrument, because of the different price of instruments, but R:R ratio, i think should be the same for all i trade.

    Today i tried to be more patient. I had 3 round trips of 5000 shares each in the first 35 minutes and decided to quit for the day.
    + 0.0416
    + 0.0432
    + 0.0357
     
    #19     Jul 27, 2018
  10. birdman

    birdman

    True, but on a high volume stock, there are many small traders trading at every price level. If you watch the trades on a stock or etf with a 1 cent spread (with a price between $10 and $60) you can see total number of shares traded, jumping by 30k and more without the price changing (no impact).
     
    #20     Jul 27, 2018