Why is there no such thing as a "scalping hedge fund"? If scalping can be a profitable strategy with a small size, then why would it not work with a bigger size? There are a few futures markets that could easily accommodate 1,000 contracts position size, like ES, ZN, EuroStoxx50 etc. Is scalping a scalable strategy and what maximum capital do you think one could trade this way?
The most sophisticated HFTs spend hundreds of millions on technology to "scalp" exactly those markets. The cost/benefit makes sense only for a prop shop, not an incentive-fee shop. And recent low volatility cuts into profits.
Takes time to develop scalping systems and targeting small amounts, wiggle room is not there like in long term trading. Like making under one tick to few ticks on average, and once you do, there at limits of how many you can do as in getting out when you need to. Yes, you can put on thousands of contracts at one time first twenty minutes, but it is the getting out that matters most and where the huge losses that come out of scalping. But once you have figured out the limits, more like why share it with clients? When/If I did a Hedge fund, there are certain aspects of trading I would never do for clients, nothing to do with Commodities, am too greedy to share. Stocks on the hand are more numerous and they don't expire. Would do tons of options as they do expire.
There are funds that do zillions of high frequency trades. Medallion fund by Renaissance Technologies has crushed for over 20 years and they have made a fortune in this area. However, because they are beyond sharp, they do other things as well.