scalping with prop firms

Discussion in 'Prop Firms' started by caementarius, Jun 16, 2008.

  1. So I have to admit that when I first heard about scalping I thought it was a very bad idea. After all, what goes on inside of a minute seems like noise. Now, it makes more sense to me after reading 'Markets in Profile' and getting a better idea of how different timeframes work.

    It also really makes sense to me for scalpers to have leverage whereas with swing trading one might more easily get into trouble. I realize that $50-$100 gains here and there during a day can really add up. It's also psychologically easier to handle small losses rather than big ones..

    So, I want to master the short timeframe. What do I need to do? I'm using Anvil but I don't have any group support as far as hotkey layouts, training, etc -- I'm piecing things together from scratch on my own.. Not necessarily a bad thing - but it's somewhat daunting given all the features available.

    Any feedback on where to learn more in this area would be appreciated.
     
  2. Alexis

    Alexis

    hi,

    You need lightning fast order execution and the lowest commissions for a start.

    I would not advice scalping for individuals at home with normal rates. Slippage and commissions are far too dangerous.

    just my 0,02
     

  3. .02 appreciated. At about what commission rate does scalping become impractical? I suppose it's different for everyone. I have the execution speed and have mapped out some useful hotkeys. As a noob, I think the rates I'm paying are likely too high given what I've read here.

    There are a few names that exhibit some pretty steady bracketing, especially in the afternoons. However, when they start to trend I've gotten into trouble - so I need to work on recognizing when a stock is behaving in a way that's not conducive to scalping. Right now, I'm just in survival mode trying to learn a style that I can stay alive with.
     
  4. Alexis

    Alexis

    When it comes to real scalping (taking 1 tick through book reading), fees shouldn't exceed 1/10th of the tick value...
     
  5. My keyoboard layout is:

    F1: Buy Inside Offer - NYSE
    F2: Buy limit (adjust box) -NYSE
    F3: Buy Inside Offer +5 cents - NYSE
    F4: Buy market -NYSE
    F5: Buy limit (adjust box) - Arca
    F6: Buy limit (adjust box) - ISLD
    F7: Sell Limit (adjust box) - Arca
    F8: Sell Limit (adjut box) - ISLD
    F9: Sell Inside Bid - NYSE
    F10: Sell limit (adjust box) - NSYE
    F11: Sell Inside Bid - 5 cents - NSYE
    F12: Sell market NYSE

    Space bar: cancel all orders
    Shift B: cancel buys
    shift S: cancel sells
    tab: next LII box

    If you're trading nasdaq then you dont' want NYSE keys. You want to use a smart swipe, too, however my NYSE key is set to take everything.

    Since when is taking more than 1 tick not real scalping? Many of the best markets to scalp through book reading (IMO) are illiquid ones where multiple tick moves can come after taking out a price level.
     
  6. Don't try to learn to scalp on your own unless you have unlimited capital and time.
     
  7.  
  8. like i've tried to explain this concept to about 5 people in the past, each with varying degrees of failure and its just becoming clear to me that it not really my fault.
     
  9. bro stop trying to explain that to people. WE WANT PEOPLE PUTTING IN ORDERS WITH THEIR MOUSES so they don't cancel them quickly enough when the quote situation chages or so they put the limits at the wrong prices so we can scalp them!
     
  10. lol, limiting their outs?

    i don't think its something to worry about since they don't do that.

    Theres 4 buttons a mouse likes to click.

    buy on bid
    buy on offer
    sell on offer
    sell on bid

    the concept of putting your offer through the bid, its just not even there for these people because they trade a liquid enough market that simply going to market is good enough (how bad u gonna get slipped, really.)

    the only outs these people are gonna limit are the ones where they're throwing out an offer on their long. I'm almost 100 percent certain they don't put their offers through the bid to limit their slip, they just go market.

    then I firmly believe anybody who has put on a trade, and is scalping stocks, would have enough common sense not to try and scalp with a mouse....unless of course they're doing everything off the macd....and then really, anything is possible when you have the holy grail.
     
    #10     Jun 16, 2008