threre was a scalp cd from member Threei, other seem like it http://elitetrader.com/vb/showthread.php?s=&threadid=50348
What do you guys think of the following book: Mastering the Trade by John Carter? How useful would it be for scalping ES?
It is not that I am good at it, but from observing the charts/tape it seems that it is much easier to get "lucky" hitting a fill for 1/4 or 1/2 point than for 3 or 4 points. Basically if you go with the trend the probability of a fill at 1/4 or even 1/2 is much grater in my opinion than for 3 or 4 points and happens more frequently. I am not playing for a better move, because there might not be a better move at that particular moment. Many times the tick will go up a 1/4 or 1/2 point and then reverse for 1/4 or 1/4 point before shaking off the noise and continuing with the trend. I disagree that this type of trading is less profitable provided one can catch most of those 1/4 and 1/2 fills. (I agree that is a BIG if). As opposed to break outs, there are hundreds of opportunities for scalping the ES for small gains of 1/4, 1/2 point. The missing part is execution and size. Execution - very high % of winning trades. Size - large size of 100 to 200 lot to make it worthwhile. As for suckers and slow hands. Iam surely not the pro and I would NEVER try to implement my strategy right of the bat. I will probably be better of using Trader28's approach which is both simple and effective to pick $$$ from the market. However, I will keep my scheme in the back of my head for distant future trading shenanigans.
being a retail trader, 1/4 point scalping won't work for you for reasons already stated. Try it out on a simulated system that takes into account actual bid/ask hits and do tell us how it works.
It would be very helpful. And I'm glad that you decided to ask yourself about those losses, you were beginning to worry me when you told us that they didn't matter. It seems you're going down a better path than you were previously, good for you. Don-
in reality, you will need a 3/4 pt move to scalp your 1/4. say, the market is trading at 1330.00. you can't just buy at 1330.00. Nobody will sell it to you. you have to bid 1330.25. ok, you have bought at 1330.25, the market moves to 1330.50, and you want to sell at 1330.50. well, nobody wants to buy it from you. The bid is at 1330.25. you will have to wait until the market is trading at 1330.75 before you can sell it at 1330.50 do you get it?
Exactly, add brokerage fees and your risk/slippage is $42.50+ to make a lousy $7.50 But nobody wants to hear the math, it's easier to believe in the easter bunny
the only people who can buy at bid and sell at ask are the market makers. If you are a retail trader, you better first check the speed of your internet. Because the market might have moved away by the time you see it on your screen. http://www.bandwidthplace.com/speedtest/ http://www.pcpitstop.com/internet/default.asp http://reviews.cnet.com/7004-7254_7-0.html