Are we saying the same thing? "Gamma scalping is the process of adjusting the deltas of a long option premium and long gamma portfolio of options in an attempt to scalp enough money to offset the time decay of the position."
I did not watch the entire video and I'm going to. The comment made was"the guy describes how he has two separate accounts to be able to be both long and short at the same time." If he is buying futures at one and hedging at another, that makes no sense from a margin perspective and adds nothing. If he is long futures in one and short futures in another, that makes less sense. There is just no advantage to split your positions in one product over two FCMs. Trading an arb from one future to another that is similar (Gold vs Gold) or to an ETF, is not what was asked by the poster.
So you book profits in one and wait for price to revert in another? That's not what the guy is doing ... he is scalping.
Because there's a difference between open and closed pnl. If you believe in mean reversion and have enough time and margin to see it through, you don't need to guess the direction. Book profits and wait for the opposite half to revert back to break even or overshoot in opposite direction. Now take it to small range and split second time frame and you start market making.
Ok, after this I tap out. 1256 contracts in the US are mark to mark for taxes. There is no difference between a P/L from an open position and a closed one. They are taxed the same. There is no difference between realized and unrealized. Booked profits in one place and not in another are the same. Sales do not require a locate like stocks and there is no down-tick rule.
Robert, I appreciate your input. At no time do I ever think I know more about market making than you There strategies where people sit through large open losses to end up small but consistent closed proits.