HFT scalping

Discussion in 'Trading' started by oilfxpro, Jun 23, 2012.

  1. HFT is probably the only money making trading?

    Do any of you do HFT style scalping ?What is the strategy for hft ?Does HFT involve price action and trading around 20 period simple moving average?

    How_ever, fx HFT is unique in that it uses sev_eral sets of mov_ing aver_ages to gauge it’s enter set up with secret entry prices after set up.How would it work?

    http://traderassist.com/fxhft-strartegy-performance

    http://epchan.blogspot.co.uk/2012/03/high-frequency-trading-in-foreign.html

    http://en.wikipedia.org/wiki/High-frequency_trading


    With scalping one can trade around 200 times a day , how many times a day does hft strategy trade?

    How many trades could you have taken for scalping from the following image ?

    I once tried scalping 120 times a day and it worked .Let us assume you traded 120 times a day and made100* 4 pips a trade = 400 profit , less losses of 20 *12 = 240 , equals net daily pips profit of 160 pips.

    http://www.trade2win.com/boards/forex-strategies-systems/94628-1-000-p-fx-mercenary-trading.html
     
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  2. http://wallstcheatsheet.com/wp-content/uploads/2010/07/The-World-of-High-Frequency-Trading.pdf
     
  3. Sorry to break it to you but HFT don't trade off a 5minute chart or use stochastics. By the way, I thought you were making so much already that you had assistants? Why would you want to venture into the rip throat world of HFT? Just size up the trades you already do.
     
  4. The 5 min charts are there for looking at context , and preparing trading reactions to market behaviour.There is no need for charts .

    Trend trading does not work well in forex , only 4 out of the last 10 years were reasonably profitable for trend trading during the day , and maybe one or two of those years the profits came in the night sessions .

    I find this scalping is more profitable , with the potential to generate 60 pips daily , whereas trend trading and set up trading will generate maybe 5 to 10 pips daily.The assistants are to assist with the scalping entries of 120 + trades per day.:D

    60 pip daily on a $50 k account using 1 to 3 lots ,can generate over 500 % a year , using a unique scalping method , without compounding.

    I use a combination of discretionary technical set ups ,momentum scalps ,contrarian trades (for the 80 % failed trends) ,price action ,supply /demand , resistance/support and scalping in ranging markets.
     
  5. just ideal discusions.

    if just for 1point per trade, for example the ES. theoretically you can make trades you can not count in a day. or in another word, you can make as much as you can.

    practically and as a matter of fact, even HFT could not do it.

    yes, there are enomouse 1point opportunity either way. but what you do not realzie is: when enter, how many times the market will favor you or it may go against you sveral points immediately, how do you deal with it, then it may keep go against you.

    those little moves are just like littlite minnows, too small, you see bunches of them, but when you cast a net on them, it seems you get them, when your net is up, nothing is there.

    I hate pay attetion to those little ups/downs. I just focus on the overrall picture. the bigger the better. since the bigger, the easier to get them.

    in this strategy, you easily win, but also you easily lose.
    if you do not manage well, losing may prevail. that is why most day traders struggle, finally give up.

    for example, last thursday, NQ dropped almost 70points. and if you bought at the price when it dropped 50points, say at 2570.

    some of you may cut loss. they think they are disciplined. but if you wait till this friday, you are green. how about wait till next monday or the GDP report, you may see NQ is at 2670. what do you think. the 20points against means nothing in this case.

    how about you cut loss, since you dumped with a loss, your emotion is changed, you become cautious or become mad, try to recoup the loss, how about a reverse, sold at 2560, then the market dropped to 2548.5, just kind of make the money back, but somehow your revenge kickes in (you want to extract more to punich the market's taking your money), you may wait it to continue drop, .... lots of story...

    you can see, this cut loss easily make you go astray toward loss after loss, and changed your mindset totally.

    make things worst is: after you cut loss, the market comes back, and go higher ... your reaction to this will definetly something harmful to you!


    do not cut loss, wait, cheat it. if hft has to cut loss, then cheat it, promise to hft to cut loss, but you secetely broke the promise.

    I have some losers i wait more than two weeks, then finally come back and give me more. rarely the market do not come back. so just buy %portion risk position is good enough. do not do all in.

    you will be far ahead of the game. who knows what will happen the next minute. but generally we may know the market most likely will be at the range at a period of time. the big trend or big picture can be easily spotted.










     
  6. HFT is making money for now. But much less than before. the new hearings talked about how they probably will follow the Canada model and have no sub penny advantage any longer.
     
  7. Occam

    Occam

    I hope you're right, yet they had Knight at the hearings promoting various policies that would favor them, and Knight is one of the largest payment-for-order-flow firms out there. (Payment-for-order-flow is where much, if not most, of the sub-pennying activity comes from.)

    I think market transparency and fairness would improve significantly if congress banned payment for order flow arrangements (especially direct ones with market makers) as well as internalization. Or at least forced all brokers to give the payment for order flow directly to customers, which would dramatically reduce the potential for conflict of interest.
     
  8. The only consistent profits nowadays are from hft type trading.

    If Goldman Sachs alone can make $100 million a day from HFT, then $20 billion globally seems reasonable. But that’s a very big if, and I’d love to see how TABB Group and FIXProtocol arrived at their figures. (It would also be nice if HFT was clearly defined, which it isn’t, although I think most people agree that it’s a superset of flash trading.)

    http://blogs.reuters.com/felix-salmon/2009/07/29/judging-high-frequency-trading/

    Good luck to education trainers for selling courses on trend trading ,and more god luck to learners/noobs of trend trading dream. Statistically 80% of the time , the markets trade in a range ,where noobs get slaughtered trying to trade trends.
     
  9. $100 million a day=36.5 billion a year every year. Do you think this $100 million a day is just a single good day?
     
    #10     Jun 24, 2012