Scalping

Discussion in 'Strategy Development' started by awhoa99, Nov 30, 2006.

  1. awhoa99

    awhoa99

    I know people are going to say to search for this post, but I searched several times and the search on here is not that helpful. Anyways.....

    What is everyones favorite scalping set-ups?? I am somewhat new to trading and I am having a hard time doing it, and there is not a lot of literature on the subject. What kinda of charts or indicators do you use?? Any help would be great. THanks
     
  2. For scalping, execution speed is just as important as the trading system itself. I would find a fast API and rent a spot inside the same building as the brokerage (if it helps any), and then worry about the trading system. There are plenty of good trading systems.
     
  3. GOOGLE search for my MILK THE COWS (MTC) posts.

    MTC is a scalping method that produces daily profits in under 60 minutes.
     
  4. here it is from TheRumpledOne:

    Actually, it is SIMPLE to make money in the markets.

    "THE HIGH IS USUALLY HIGHER THAN THE OPEN AND THE LOW, LOWER."

    That is a simple statement that can make you all the money you'll ever need.

    MILK THE (GOOG) COW STRATEGY:

    "Trade GOOG at/near the open, at/near the open price."

    1) Trade - go long or short.. I say it doesn't matter so pick one. Smart money FADES THE GAP!!

    2) GOOG - that's the ticker for GOOGLE, that's not vague.

    3) at/near the open, that would be 9:30 AM Eastern time.

    4) at/near the open price, that would be the price of the FIRST trade of the day for GOOG.

    The above strategy DOES NOT take DrawDown, Risk Tolerance, Risk/Reward and Money Management into consideration.

    Draw Down... I don't care. What I look for is whether or not each entry had the potential to make a profit(run up).

    Risk Tolerance... use whatever calculation you want. Up to the individual.

    Risk/Reward... use whatever calculation you want. Up to the individual.

    Money Management... use whatever calculation you want. Up to the individual.

    Add your own rules to make the MILK THE COW STRATEGY stay within your DrawDown, Risk Tolerance, Risk/Reward and/or Money Management criteria.

    If GOOG is out of your price range then trade AAPL.

    If you don't believe this is true then go to finance.yahoo.com and enter GOOG or AAPL. Click on HISTORICAL PRICES. Then select whatever date range you want. Download the data to EXCEL.

    Enter a couple of simple calculations to compute HIGH - OPEN and OPEN - LOW.

    Then sort by the HIGH - OPEN column. Count how many days has a number less than .10. Do the same for OPEN - LOW. Of course, you can enter a formula in a couple of columns and compute this result.

    The number of days of .10 or less will be less than 10%. Vegas would kill for these odds.

    That means STATISTICALLY you have a 9 out of 10 chance of making $.10 or more on the trade.

    If you want, calculate the averages for HIGH - OPEN and OPEN - LOW. Divide by 2 and use that as your target exit.

    This is how you MILK THE "CASH" COWS!
     
  5. JGTrader

    JGTrader

    Rumpled-

    Excellent simple strategy, beats watching fake bids/offers in the morning.

    At my firm I can only trade NYS, do you know of any listed stocks that trade like those?

    Jonathan