Scalping NQ

Discussion in 'Index Futures' started by Swan Noir, Nov 19, 2009.

  1. Is scalping NQ for six, seven or eight ticks a reasonable thing to do or does the high ratio between tick size and commission (I pay $4.50 RT) make it problematic.

    I am still relatively new and trade a single NQ contract at a time looking for three points or a bit more on a five minute chart. I like the $5 tick as it keeps my risk low at this early stage.

    BTW ... I am not too interested in opinions as to whether this is a tough time to scalp or being told I should go long and spend the day golfing. I really just want to know if in "ordinary" times NQ is a scalpable contract.

    Thanks ...
  2. The question to ask yourself if you want to scalp the NQ for 8 ticks is where do you place your stop? It better not be more than 8 ticks, or else you'll probably lose money over time. IMO, an 8 tick stop on the NQ is too difficult, and you should really be looking at profits and stops in the 15-20 tick range if you insist on taking profits quick, especially if you are new to the contract.
  3. It appears that there are some scalpers that risk 8 ticks to make 4 or 5 and win on 70%+ of their trades.

    I take it you are skeptical that it can be done consistently?

  4. Scalping with a 8 tick stop, your comm rate and 5 tick profit and a 70% win rate, you end up with $100 profit per contract with 100 round turn trades. With taking 4 ticks profit, you end up with $250 lose per contract. It can be done consistently, I've done it with CL for the past year, with a 5 tick stop and taking profit at 5 ticks, with a win rate of over 70%.
  5. Kovacs


    In my experience, NQ breakouts on long timeframes (30 min or higher) combined with S&R analysis is easier than scalping.

    It's a more orderly instrument. My view is scalping NQ would leave a lot of money on the table with disproportionate risk.
  6. I assume you mean more orderly than ES?
    What size stop would you typically use on 30 minute breakouts?

  7. NQ is my main trading vehicle at this time. My standard preset stop is 8 ticks, and standard preset target 8 ticks. My commissions are $4.60RT This setup can be profitable, but it all depends on your entry. I often move targets up to 12 or 16 ticks when I feel it will go better then my 8 target - trail stops to protect.

    I went long this morning right after the dip at open @ 1760. All other markets failed to dip (DAX, ES, YM, (ER) was actually trading up) signifying strength and a false dip in NQ.

  8. deaddog


    If a trader trades 1 contract and has a 70% win ratio he will gain about $2 per trade and pay $4.50 for commisssion.

    You have to trade 50 contracts to make $100 and your broker makes $225
  9. Time over time I have to listen to this.

    Who says we must risk less than our reward to be consistently profitable ?

    Only thing that matters is expectancy.

  10. First of all I did not refer to a 70% win rate ... I said "70%+ of their trades". Note the plus. That type of trader will frequently move his stop up 3 or 4 ticks if he is one tick short of his goal and the market just hamgs there.

    And lastly my original question was 6,7 or 8 ticks. I was never intending to try it for less.
    #10     Nov 20, 2009