This story seems important to you. Are you experiencing vicarious glee? Does it energize you to want to become a better scalper? There's more than one way to skin the market's cat (I figure there are about 6 ways), but this one seems the most challenging. (Maybe there are 7 ways.. this is not one of my 6.)
Well the story is important because it basically illustrates that scalping is a very viable way of making $$$$$. Moreover, when I presented a similar idea, many Et'ers were adamantly stating how silly, unreal, primitive it was to even phantom system based on scalping to make any money much less serious cash. If you were to go over the posts in this thread ans Part I of it, then you would have surely noticed the amount of sarcasm and pompous statements from some guys who are clearly not in the same league as the master trader fom the article (aka the flipper). I just went over both threads and was laughing at some posts where some guys would swear that there is no way the money could be made scalping the market.
Well then, you need to become a high-frequency scalper and produce satisfactory results yourself. Or perhaps you won't find success. Not because it's "impossible" (Rotter proves it's not IMPOSSIBLE), but because it takes such an extraordinary skill set that only a very few can prevail.... and that you are not one of them. Good luck. Keep us posted on your results.
You were saying? Great risk-reward: http://www.collective2.com/cgi-perl/systems.mpl?want=publicdetails&systemid=25893477&session=1
"Handsomely" is an exaggeration. Rotter says he plays for "3-5 tics", the numbers from your story calculate to about $1.50 net profit per contract traded. With the ES @ $12.50/tick, you'd be netting the equivalent of "1 tick per 8 trades". Sounds overwhelming to me....
I havent read all the thread, but....EXACTLY! I don't know of any good sim market out there. Even the TT one has massive flaws - although the sales spiel is good. But it would be - as soon as mr noobie thinks hes on a winner, he pays tt/whoever more money for the live platform!
<i>"I guess scalping for 3 to 4 ticks CAN pay off handsomely and made my original quest for the holy grail a little bit more validated..."</i> How do you figure that? Your original thread had nothing to do with scalping for 3 - 4 ticks... it was specific to 1/4 (0.25pt) ES or one single tick. You proposed buying the bid / selling ask and vice versa. Correct, or have I forgotten the topic after all this time? I'm still on record that trying to scalp 1/4pt ES profitably over time is impossible for retail traders. What someone does for several ticks in any market is outside the topic at hand. May I inquire what would make this 1/4pt ES scalping any more viable than your current method of scale trading in the first place?
You are absolutely right, my method was for 1/4 point which is one tick on ES. What I am arguing for is the idea behind it. Namely, that in order to be successful, one needs to try to catch big movements in the market. Jumps of minimum 2 point and ideally 5 to 10 points to have a winning strategy and profitability. While I do not negate that it is a method to successfully make money as proven by you and many others who regularly post on ET ( ES Journal to be more specific), there are other alternatives to make $$$$ fromthe market. Granted flipper's technique is nt the same as my 1/4 point idea was, but it is in the same area of thinking. I was originally asking if profit can be made on 1/4 point, he is doing it with 3 to 4 ticks of profit at a time. This is what the MAN states: Q: you are known as the orderbook-scalper, could you please explain to our readers what you are doing and what your strategies look like? what is your tactic? A: it's some kind of market making where you place buy and sell orders simultaneously, making very short-term trading decisions Now, do you see any similarities between what I stated and what this gentleman has been doing for past 10 years rather successfully I might add? Granted, it is not the same thing I was doing but the philosophy behind it is strikingly similar. This is precisely what I wanted other Et'ers to acknowledge. As for my current way of trading (scaling in countertrend). That is another entirely different matter and totally not related to the 1/4 philosophy of mine. However .... since you asked .... So far, it is making me money. Basically I am selling tops and buying bottoms, except that my net is a bit wider and hence carries more risk. I am currently working on the risk factor since I dislike being down 50 points on the ES from time to time. However, the rewards are there. I made 3K today risking about 2k on that particular trade. I am not pleased with my RR, but like I said before, I am working on it. I hope you are not insinuating that my 1/4 method and my scaling in countertrend method are both in the same trading lala land? While I do contend that 1/4 way is not viable in its original form, I think my countertrend scaling in way is viable.