Scalp Strategy that works

Discussion in 'Strategy Development' started by Cazza La Randa, Aug 5, 2009.

  1. I found that this scalp strategy works fine

    I scalp the ES 4/6 times per day (with 20 lots)

    --------------------------------------------------------

    Min. 2 lots

    Stop/Profit Rules (Low medium price range):

    Profit_1 = 1,75
    Profit_2 = 3,75

    Loss = 2,25

    Price Change 2,0 (when the first target is met)

    Stop Change 2,75



    Winning trades +/- (75%)
    Losing Trades +/- (25%)

    as follows:

    A*) % of trades with both targets met = 25%

    B)* % of trades with one target met = 50%

    C) % of losing trades 25%.


    So I have:

    A*) (1,75 + 3,75) x 2.5 (25%) =13.75 points profits

    B*) (1,75 + 0,50) X 5 (50%) = 11.25 points profits

    C*) (-2.25) X 2.5 = -5.625 points profits


    Total profit per 10 trades with 2 lots:

    (13.75 + 11,25) - 5.625 = 19.375

    19.375 x $50 = 968.75

    Commission = 4,5 x 20 = $ 90


    Net gain 878.75



    Comments? Just curious to see what is your strategy
     
  2. over what time period did you put these stats together?
     
  3. FaceOff

    FaceOff

    Shouldn't C be doubled (since you are being stopped out of 2 contracts)?
     
  4. I made 464 trades since early April

    Of course you have to adapt the size of lots and/or stop, based on daily price range

    Personally, I reduced the number of lots when the range was wild, raising stops and profit targets
     
  5. Yes

    My mistake

    Min. 2 lots

    Stop/Profit Rules (Low medium price range):

    Profit_1 = 1,75
    Profit_2 = 3,75

    Loss = 2,25

    Price Change 2,0 (when the first target is met)

    Stop Change 2,75



    Winning trades +/- (75%)
    Losing Trades +/- (25%)

    as follows:

    A*) % of trades with both targets met = 25%

    B)* % of trades with one target met = 50%

    C) % of losing trades 25%.


    So I have:

    A*) (1,75 + 3,75) x 2.5 (25%) =13.75 points profits

    B*) (1,75 + 0,50) X 5 (50%) = 11.25 points profits

    C*) (-2.25*2) X 2.5 = -11.25 points loss


    Total profit per 10 trades with 2 lots:

    (13.75 + 11,25) - 11.25 = 13.75

    13.75 x $50 = 687.5

    Commission = 4,5 x 20 = $ 90


    Net gain 597.5
     
  6. dtmike

    dtmike

    Wouldn't you be better off just going for target 1? If so a one contract strategy with you results would look like this:
    A. 1.75 * 7.5 (75%) = 13.125
    B. -2.25 *2.5 (25%) = -5.625
    13.125 -5.625 = 7.5 gain per contract

    as opposed to 13.75 gain for a 2 contracts or 6.875 per contract.

    I could be wrong here, check the numbers.
     
  7. So, what's the TRADING strategy? Rules for entries?
     
  8. MISSSNP

    MISSSNP

    AS USUAL ALL BULL SHIIET , LETS SEE YOUR PL'S WHY WASTE YOUR TIME AND OUR TIME ON THIS BOARD IF YOU'RE MAKING SO MUCH F KING MONEY!!