Don't know if I'd be considered a scalper or not.. I trade ES exclusively... Usually 3-6 set-ups a day using 3-minute charts... I try to pull 1.5 - 2.0 points out of each set-up... usually not a problem... I set break-even stop when up .75pts. I use BB, 1 and 3 min. STOs and MAs, as well as FIBs and sometimes EWave... Happy Trading!! Dave
Kirshenbaum Bands are similar to Bollinger Bands, measuring market volatility. Bollinger Bands use standard deviation of MA for band width Kirshenbaum Bands use the "standard error of linear regression lines of the close." This has the effect of measuring volatility around the current trend, instead of measuring volatility for changes in trend. I use the K-bands as a macro indicator, one I most rely on. I trade K-Band signals that are confirmed by RSI or DMI. And of course, I always trade with the trend. (I have also found Engulfing candles to be a supurb confirmation, also serves to help me backout of a bad setup.)
My perception of scalping NASDQ stocks is someone who tries to make anywhere from .06 to .15 profit from trades and does this mainly by reading level two. Trying to figure out who the buyer is be it a MM or an ECN. I feel this type of trading is extremely difficult to sustain a living. That is what I meant.
yeah, that's tough game. I wouldn't be trying to do it on constant basis, this kind of scalping is not today's reality, it's rather from long forgotten SOES bandits times Vad
Hi rts, I haven't traded es or nq extensively, but the few times I've tried, I've found them difficult to trade -- well, except for the no brainer super-rally or selloff days. What sort of profit objectives do you use with them? And stop-loss? Do you use stop orders? They seem almost too "wiggly" to use stops nicely. Do you scale in and out of position, or go with your standard size immediately? Thanks!
If you don't mind my asking, how profitable are you with this strategy? Do you mean 2 ticks, for a total move of 0.5, or two POINTS (2.0)? Thanks!
For pure scalping you don't really even need charts or setups. When I'm in a pure scalping mood, I just look for an escalation of the pace of trades. Then put an ecn bid or offer (wheather you want to get short or long) a bit outside the current market, going against the panic. You will usually get hit by a trader wanting to just get out of a bad position. Then turn around and go to the other side again outside the market. You really have to have great timing for a stocks saturation points. This kind of trading can get very intense and takes laser like concentration but can be very profitable in the right situation. It's best in illiquid fast moving stocks. Best example was TMPW on friday. I made 30 round trips in the first hour, all using island outside the market getting .20-.40 cents a shot.
Not sure I follow you as I also played TMPW a few times on Friday. Let's talk about the first large leg down, first thing in the morning. Did you mean by going against the panic you put in bids below the market while the stock was tanking? And when you were hit, how did you "turn around" and get out of your long position while the stock was still heading down? You certainly couldn't offer outside the market because inside offers weren't even being hit, so I'm not sure what your strategy was. Please give a specific example and time so I can see what you mean. Thanks.
You know that might of worked on Friday, but try doing that every day and let us know whether you can consistently make a living doing that everyday.