Here are 13 trades I took today on a SIM and I show them on a replay to speed up the trading. You may find them interesting. It was 13 trades. 11 winners and two losses. It is assuming a small account of say $3000.00 to $5000.00 and trading the MNQ. The goal was to get to $100.00 and stop. Maybe a little more to help cover commissions. The trades rendered net $109.00 in about 36 minutes of trading. In points 54.50 points. I realize that doesn't sound like a lot but just remember if this was a larger account say a $30,000.00 those same trades on the NQ would render $1,090.00 in 36 minutes or so of trading. Now think this way. How many slots of 36 minutes do we have in a day session of the NQ? I think you can get the idea of the profit potential scalping! I wanted to highlight a few concepts in today's trades: 1) FOT or frequency of trades. Most any bar can be traded and has a built-in profit potential that I can extract if I know how. 2) Grabbing what the market gives me and entering again. 3) A bit of discussion on trading BOs, with special focus on bar BOs of the previous 1 to 3 bars. 4) Patterns such as wedge tops and bottoms which offer many many opportunities for FOT in a session. 5) The profit potential that exists and can be made in a small amount of time scalping. 6) Using a 4:1 fixed R:R. In this case risking 20 points to make 5 points. Using as set SL and a set PT (i.e. a set stoploss and a set profit target). Not changing or moving them. 7) Watching the EMA in terms of price as it nears it, stays above it or below it. 8) Intraday swing trading (two legs 10 bars) using MTR (major trend reversals) 9) High win rate 10) THERE IS NO NOISE IN THE MARKETS. THERE IS ONLY MOVEMENT. I dispensed a long time ago with the concept of noise. Hanging onto it only makes me miss out on a lot of trades. IMO opinion traders are doing a great disservice to themselves hanging on to these concepts of chop and noise. Such clinging to erroneous concepts will stop one from trading when they could be taking trades. These two concepts are guru talk. If I have my head screwed on right psychologically this type of scalping can work for me. Although I do admit I have some days it seems my head is screwed on ass backwards. Anyway, enjoy IF YOU CAN. If not just hop on the train to another thread. May your trading be well and good and profitable this week. Volpri Note: if the video or my talking stops it is not the end. I had to take some phone calls. Just wait a bit and it will start back up. You will know when the video recording is over as the screen will go blank. Disclaimer: All of these videos on this YouTube channel including this video are for entertainment and information purpose only that show how I like to scalp. Actual results can be different than real or SIM results, so I am not advising anyone to use these techniques. You may not get the same results as shown in all these videos and you can even lose all your money plus more.
Good Evening volpri, Great video and writeup. I enjoyed and learned alot from the video. How can I get perfect and expert and wedge top and bottom scalp trading? Thank you
Just to let you know, sir, I am beginning to get comfortable with your averaging down concept. In the past two weeks of live trades, I used it several times and ended up saved several of my days from losing to winning. In fact, no losing days in the past two weeks because of it. Of course I am still trading small, only $1K per trade and profits were modest. If this continues for another month or so, I may scale up. Thanks.
Just remember if the context is wrong it can cut hard the other way. But it if used properly and in a good contact it has the potential to salvage a trade and make it a winner. And if it cuts hard in the wrong direction one has to have a strategy to exit and recuperate a now bigger loss.
In one of my sim trades, a wrong way BO + averaging down spelled a big disaster that wiped out a big chunk of my account. That is why I am very afraid to do averaging down.
I have seen many scalpers with an upside down risk reward, coupled with a high win rate, though not as extreme as your ratio. But I am sure you made it work. I think it is helpful to employ the concept of noise. But noise is only in the context of your methodology, not an absolute declaration. For example, scalpers often think of big intraday moves as just noise, since scalpers believe you can only predict the next couple of bars. Thinking of these big intraday moves as noise, helps scalpers keep their eyes on the ball and focus on their setups. Conversely for me as a daytrader going for big moves, 1 min bars are just noise. Thinking of that as just noise, keeps me out of trouble and focused on my setups.
Noise as an imaginary mental construct may be useful to some traders. I just don't see any such thing as noise. All I see is movement. Small movements and large movements. I dispensed with the concept a long time ago. When I did I my eyes opened up to the world of trading opportunities. And so many profitable opportunities. Instead of sitting on my thumb, waiting for some setup to appear that might show up once or twice a session. For instance, wedge tops and wedge bottoms abound on 1m-2m TFs. Many many over and over tradeable wedge tops and bottoms. MTR don't appear as often and have a lower win rate but when they do work out they can render a bigger profit. Then there are MMs, TRs, BOs of a price pattern or BO of a previous bar. The latter about hundreds of times in a day session. The former strong BOs occurs maybe 10% of the time in a trading session and really good BOs of a price pattern occur maybe 5% of the time. So I could wait for those if I have time and patience to do so or I could trade the other opportunities about many times over and that are labeled as simply noise by many traders. As a scalper I also jettison the idea of overtrading. There really is no such thing. There is only a good time to trade and a bad time to trade. And the amount of trading or effort I put into trading is only constrainted by the: 1) amount of time I have that session to trade. 2) my mental state that session. If I am tired, confused, indecisive (about anything not just trading) angry about something etc. 3) my reading the markets is off the mark. Am I reading PA spot on or am I "off" that session. Some days I am just out of the flow of the waxing and waning of the probing in the markets. 4) I have reached a profit objective for that session. And have other things to do that day. Otherwise, I can trade all session until close to the end of the day session and can trade most any bar although in practical terms while there is profit potential on every bar as a scalper I will skip over the opportunities or not be fast enough to take them all.
One-way to avoid that is wide SLs and an upside down R:R. Odds favor a quick profit can be made before a wide SL would be hit if was I am pretty proficient in reading PA. However it requires using a fixed or set SLs coupled with a strategy of what to do when a SL is hit. I usually prefer dynamic SL and PT that I will move around depending on the dynamics because I can whittledown and use other techniques. I have more actionable trading techniques (more opportunities to use techniques) to use if I use dynamic SLs and dynamic But there are days it is best to use a set SL and PT. And for many traders it likely is best to trade with fixed SLs and PT however to have a high win rate they generally are going to be upside down on R:R at least when scalping otherwise their account will bleed on paper cuts. I scalped between 8:30 a.m. and 12:16 on a sim trading MES yesterday jan 28th and I think I took around 30 short trades and over 45 long trades. Somewhere in that area. Since commissions are around .54 or 1.09 RT that would come around around 80.00 in commissions. Enough for the broker to buy a good ribye lol. I grossed $417.00 so I netted after commissions around 337.00. This was for the most part trading 1 contract and on recovering losses usually using 4 to 6 contracts and on one occasion 20 contracts. I think I had around 8 losses. So just for calculations purposes assuming 75 trades (shorts and longs) the win rate was around 89%. Although done Sim I think their are several good illustration of techniques I have been discussing: Grabbing profits FOT SALVAGING a loss quickly Buying the broker a ribeye LOL vs a hamburger Trading patterns especially 3 push up or down patterns Wide SLs thus avoiding paper cuts What to do when wide SL is hit Trading small size for the most part Utilizing fixed or set SLs and PTs thus avoiding assuming even bigger risks. Maintaining high win rate. If I can make a replay video I will and post it. Even if done on a SIM and being a replay it is live PA trading and elucidates the techniques. I have some mechanical things to do on my wife's car...brake pads..rotaries etc so I may not get around posting a video until tonight. I do most of my own maintaince and mechanics on my vehicles including my motor home unless it is beyond my skills. Then I take it to mechanic. I admit I have a hard time trusting mechanic shops. There are a few good ones out there but there also is so much incompetence in that field. Even big car dealers shops will at time cut corners or not do things they should do.