in emini ES trading, some traders use market depth to scalp for 2 tick profits. I wonder how that is possible when the trader has to pay 1 tick spread?
It is impossible for 99.6% of traders....good luck trying to be in that 0.004 of people that can make it work.
Scalping out a profit of 2 ticks is different that aiming to do so. I imagine 2 tick profits are simply trades that didn't work out, but just moved enough to allow the trader to lock in a little.
When you provide liquidity (buy at bid, sell at ask) you dont pay the spread. I have no clue how they do it but I guess a relly good tape reader can.
I run 2 contracts in the es and my bracket system sells my first contract at +2 ticks. Your right it is just enough profit to see if a trade works out. My goal on my entry is to allow my first target to be hit. If your scalping, your always putting yourself at risk to he market for a full stop out. IDK what your stop would be on that but it's not the way I'd trade.
Several reasons why I take 2 ticks. My trailing stop got hit.. My reason for getting in has changed, I no longer like the price action. I am trading off of a directional signal, but I can sense there will be a few minutes of chop... In this case, I exit at top of range and buy at lower range, can be 2-3 ticks. Do this 4-5 times in a minute, and u make ur position basis better, then u stop and wait for the breakout. Do it all the time... The real question is, if entering for a 2 tick profit, what is your stop?