Futures Scalping

Discussion in 'Index Futures' started by OkComp, Sep 17, 2009.

  1. OkComp

    OkComp

    Hi,

    I've been using Expo Futures' Firetip platform on a demo account. Currently I am applying scalping techniques, aiming for 3 points per position taken, which has resulted on a 2% daily return so far.

    I would like some information on which platform should I use for this type of trading method. Expo Future's is good enough, but their commission fees are kinda high for this method ($4 per contract per position). I would like to have all the features Firetip provides, but for a smaller fee in total. I mean live feed, charting (ticks, 1 minute, 2 minutes, 5 minutes, 10 minutes, daily, weekly and monthly), studies in bar charts, access to different markets, advanced order placing (including obviously stop/loss). I would not mind having all of this coming from different providers (but definitely prefer if it all came from the same one as Expo Futures does). Can you please which systems will achieve this?

    Thanks
     
  2. you will never make any money scapling futures. The computersa re too fast and commissions no matter how small unless youa re a member fo the cme will eventually eat you alive.. just like a casino with a 1.41 % edge.. you may have a nice winning streak but as you scalp day afteer day minute after minute you will have a negative expectantcy..

    DO NOT SCALP.. no mater what platform you have access too there are hedgfunds and Goldman that will out smart your computer and will be much much faster..
     
  3. $4.00 a side is robbery for the emini futures.

    There are a number of futures brokers with all in commissions under $2.50 a side ($5.00 round turn).

    Interactive Brokers unbundled commissions start at $4.70 round trip, but you need to use 3rd party charting software (QuoteTracker or others).

    www.futuresbroker.com commissions are $3.80 round trip and give you a choice of 4 trading platforms.

    Lightspeed commissions are $3.30 round trip.

    You can also look at TradeStation, Velocity, Amp and Mirus.
     
  4. I assume then you can exceed 500% yearly returns. Right?

    How do you calculate your daily return? Can you provide the formula?
     
  5. OkComp

    OkComp

    jeb9999, I will take a look into the brokers you suggested. How much does data feed for the charting software cost per month? Or is it included with the software?

    intraday, I know it sounds insanely high, but maybe this was just a streak. Just to verify the formula used was
    [(Transaction 1 return - Transaction 1 RT commission fees based on IB)+(Transaction 2 return - Transaction 2 RT commission fees based on IB)+(Transaction 3 return - Transaction 3 RT commission fees based on IB)+...+(Transaction n return - Transaction n RT commission fees based on IB)]/(Initial monthly capital)

    I did not compound returns into the capital. All of the returns were obtained by Post Transaction Account Balance - Pre Transacation Account Balance.
     
  6. First things first... scalping is not scaleable.. in any market.. even one as deep as the e-mini S&P 500!
    i.e ... eventually if you start doing tens and hundreds of lots.. then you will self -defeat your own strategy. (your own trades will slightly move the market..thsu erasing your edge)

    You want a strategy that is scaleable. Just because you can sell a bunch of junk at a garage sale and make a litle money doesn't mean you can start opening stores to compete with walmart and target! Get the scalping idea out fo your head.. learn to trade a strategy that is scaleable..

    also.. with scalping any governament action.. sec or cftc.. or transaction tax could make your strategy obsolete.. I tried scalping for years.. yes years and the end result was noise... if you crave more action and you see the bebenfits of not beign in the market long term then become a short term swing trader.. this is the sweet spot in my opinion.
     
  7. So, your philosophy is that if you fail everyone else must fail.
    Its good for you to share your experience but share why it failed for you so others can build from that.
    I believe the market is fractal. You can find a 30 minute chart that looks the same as a 30 year chart.
     
  8. look.. i never failed... i learned that scalping is not a viable strategy for anyone sitting at home or in an office at a computer... lol.. people on this site are sooo funny sometimes.. i don't thik I would still be trading if i failed overall... duh..
     
  9. i mentioned why scalping did nto work for me .. it was clear as the sun rising .. idiots on this site...mercor.
     
  10. OkComp

    OkComp

    OK OK, calm down guys. limitupmike would you mind explaining a little further on when your scalping strategies became unscalable? Up to what trading level was it profitable (how many contracts per order, which contracts, how many orders per day, etc)
     
    #10     Sep 18, 2009