The Ultimate DAX Scalping Discussion Thread!

Is there any book about scalping? It seems to be a rather secretive topic.

 

By Martin "Buzzy" Schwartz. A good book by a excellent scalper/daytrader.

 

Hermit:
I scalp quite often. In my opinion, scalping is about developing a feel for price action. There are several ways to do this. One is to obtain a trade report and scroll through a market day trade by trade. Another is to develop the skills (reading the level II display, reading volume, reading the charts). At one end of the spectrum, high frequency scalpers who have developed a feel for market action just point and click. With this approach they often execute several hundred round trip trades in a session. At the other end, the low frequency trader is still scalping, but is looking at more than just price, and is holding a position for periods from seconds to minutes. Low frequency scalpers often use 1 min charts or tick charts and are looking for repetitive setups. If you want to scalp, I think it is important to see it done at least once, or to try to do it yourself (perhaps on a simulator) just so you can see what it feels like, and what the stress levels are like when you have to pull the trigger 200 times a day. Its not for everyone.
Good luck, Steve46

 

Several books out there about scalping stocks but they date back to the boom. I dont know of a single book about scalping futures. I am assuming your talking about playing for the spread or a tick or two with large size.

 

You are wrong. "Buzzy" daytrades S&P500 futures. Just read his book.

 

Thanks.

Scientist is imparting to us a wholistic approach for DAX. I see he carries over a lot of stuff from his past posts for other markets.

Improving what he does really requires a focus on developing his personal efficiency for the range of market efficiencies to deliver profits. He discerns that the DAX yield is a little over twice the ES at this point in time and liquidity of markets.

I use a "yellow brick road" excel spread sheet for each market to check out the various fractal market and personal efficiencies.

The DAX shape of things for all of us it that scalping is almost ever present as an action on the carrier fractals that give DAX the more than twice the efficiency of the ES.

By trading the carrier as well as scalping there is an additional leverage available. Details of this are best seen on AMT's posts and scientist is not doing this as yet. I should use better instead of best. ET is not a best place.

Staying in (majority of contracts) the slower fractal trends that give the higher efficiency, then, as well, using fewer contracts to scalp on that carrier at high frequencies, compounds the extraction and simultaneously spreads risk. Each separate stream of capital application has it's own R/R characteristic.

I see that just two variables are needed on each carrier periodicity and that these pairs are not necessarily tightly linked. No nonsense regards this as bull$hit. To make my comment more reasonable for consideration, I will amplify it.

A theorist at Berkley, Alexander, deals in performance and the advantage of least connectedness as an advantage for success.

Scientist requested input, so this is mine.

I use pairs to minimally define. I will go through the fractals of DAX and define the pairs.

Pairs are elegantly limited to 4 combinations and permutations. they sequence in time it turns out. This is a profound element of making money.

I force you, sort of, to view what I say6 by my descriptions. It is important that you yield momentarily to this setting and environment. it is not going to trap you or disturb you any more than you want it to. I am not putting you at risk but I am attempting to open some views for you.

The slower fractals form plexiglass clear spheres outside of one another. You see clearly into the center where the scalping domain operates. By this and in this manner you have a province from outside to view scalping. There is, thus, and everpresent context. The context tempers the NOW. Scalping is asymptotic to NOW.

The pair for scalping is a price pair: cash and futures values. since change is the only way to make money. We look at their time based dynamic. All you do is look at the relative offset values and deterimine if their is a smaller difference (squeese) or a larger difference (stretch), all relative to the neutral value of the offset. This phenomena precedes the scalping opportunity. squeese is long and stretch is short.

The next sphere outward it the immediate trend pairing. Use the button plug in or the market depth. Bbid and Bask are the pair in the context of the portion of the depth presented to you. (only half of the story is on the screen). Size is the variable. The immediate trend is controlled by the least valued variable AND the filling in of values. You read it by watching the Bbid/Bask spread pair change. You always know what is next through the dynamic. The the pair changes leading to another adjacent pair. After the change is "sticks" or not. If not, the fillibration (you can laugh or smile) is between two pairs and they resonate in every changing periods of presence. You can see this immediate trend flowing along.

With just two levels of stuff, you have a context from the slower and a focus from the fast scalp center. I cheat a little. I use a leading pair of cash and futures values for my first pair. Example: INDU and YM04H as a pair lead the ESo4H scalp. Scientist covered the leading stuff of DAX for you already and other corroborated his view.

To further strengthen these two concentric plexiglass spheres, we add another which is asymmetric instead of uniform as are the first two. This larger sphere is the bane of most. And they also are not conscious of it's import and why it works against them pervasively.

The market flows with a propensity. But that also means, clearly, then that opposites do not apply. You must, for the moment, regard what I say to you. Flush it down the toilet, later, if you must. The most important fractal comes up here. It, of course, is the carrier of the two above periodicities. What makes it so important is that it is asymmetric reasoning wise. The two variables yield combinations and permutaions that are not opposites. Further, these two variables are the driving forces of any market. Price and volume.

For this set of combinations and permutations, I need to really plunge you into a thinking effort that is rock solid and unswerving in its logic. I will post it ASAP just to be able to separate it from the above temporarily. Later, I will try to amplify on scientist's posts here to give something specific to him to consider.

 

Jack,

I always appreciate your thought provoking posts. It is my own inabilities that I cannot understand. So please do not take this reply as a discredit to your style/trading ability. I have parsed below what I do not understand....You can reply if you want and I understand if you do not. But all I ask is please do not take this as an offense as it is not my meaning. When reading my remarks please change the tone of voice in your head not to reflect the mood and the feeling generally felt here in ET. This is a serious and a sincere post.


Scientist is imparting to us a wholistic approach

What does, "wholistic" mean when used in trading?

for DAX. I see he carries over a lot of stuff from his past posts for other markets

ok

Improving what he does really requires a focus on developing his personal efficiency for the range of market efficiencies to deliver profits. He discerns that the DAX yield is a little over twice the ES at this point in time and liquidity of markets.

ok

I use a "yellow brick road" excel spread sheet

I have seen this spreadsheet. I do not understand it. Could you explain in detail what it is? Is it "Maximum Adverse Excursion" and "Maximum Favorable Excursion" from entry? or is it sort of a money management sheet?

for each market to check out the various fractal market

What is fractal? How is this used as an efficiency?

and personal efficiencies.

ok

The DAX shape of things for all of us it that scalping is almost ever present as an action on the carrier fractals that give DAX the more than twice the efficiency of the ES.

Please explain your use of these words/phrases in this run on sentence above:

1)shape
2)action on the carrier fractals.

I think what your are saying is that when the ES moves, the DAX follows but it is not to the same scale.

By trading the carrier as well as scalping there is an additional leverage available. Details of this are best seen on AMT's posts and scientist is not doing this as yet. I should use better instead of best. ET is not a best place.

I think you are referring to AMT's balancing and "adding to" a trade also known as wash trades that you often elude to...right?

Staying in (majority of contracts) the slower fractal trends that give the higher efficiency, then, as well, using fewer contracts to scalp on that carrier at high frequencies,

Spikes? Out of scale reactions to movement? Position trading and balancing with little trades?

compounds the extraction and simultaneously spreads risk. Each separate stream of capital application has it's own R/R characteristic.

Well true, he does not exit everything at the end of the session.

I see that just two variables are needed on each carrier periodicity

carrier?

and that these pairs are not necessarily tightly linked. No nonsense regards this as bull$hit. To make my comment more reasonable for consideration, I will amplify it.

Why do you use this word amplify.....usually this is used in electronics via high fidelity discussions? I do agree its a colorful word though.

A theorist at Berkley, Alexander, deals in performance and the advantage of least connectedness as an advantage for success.

Do you mean those that care the least win?

Scientist requested input, so this is mine.

ok

I use pairs to minimally define.

What does this mean? do you watch other instruments as a leading indicator of the DAX?

I will go through the fractals of DAX and define the pairs.


What?


Pairs are elegantly limited to 4 combinations and permutations. they sequence in time it turns out. This is a profound element of making money.

permutations? what does this word mean?

I force you, sort of, to view what I say6 by my descriptions. It is important that you yield momentarily to this setting and environment. it is not going to trap you or disturb you any more than you want it to. I am not putting you at risk but I am attempting to open some views for you.

ok

The slower fractals form plexiglass clear spheres outside of one another. You see clearly into the center where the scalping domain operates. By this and in this manner you have a province from outside to view scalping. There is, thus, and everpresent context. The context tempers the NOW.

I have no idea what you said? Should I go to home depot and buy plexiglass?

Scalping is asymptotic to NOW.

This is so kewl....but what does it mean?

The pair for scalping is a price pair: cash and futures values. since change is the only way to make money. We look at their time based dynamic. All you do is look at the relative offset values and deterimine if their is a smaller difference (squeese) or a larger difference (stretch), all relative to the neutral value of the offset. This phenomena precedes the scalping opportunity. squeese is long and stretch is short.

I see....but could you use 2 futures symbols instead?

The next sphere outward it the immediate trend pairing.

what?


Use the button plug in or the market depth.

What?

Bbid and Bask are the pair in the context of the portion of the depth presented to you. (only half of the story is on the screen). Size is the variable.

What?

The immediate trend is controlled by the least valued variable AND the filling in of values. You read it by watching the Bbid/Bask spread pair change. You always know what is next through the dynamic. The the pair changes leading to another adjacent pair. After the change is "sticks" or not. If not, the fillibration (you can laugh or smile) is between two pairs and they resonate in every changing periods of presence. You can see this immediate trend flowing along.

ok

With just two levels of stuff, you have a context from the slower and a focus from the fast scalp center. I cheat a little. I use a leading pair of cash and futures values for my first pair. Example: INDU and YM04H as a pair lead the ESo4H scalp. Scientist covered the leading stuff of DAX for you already and other corroborated his view.

ok

To further strengthen these two concentric plexiglass spheres,

what?


we add another which is asymmetric instead of uniform

what?

as are the first two. This larger sphere is the bane of most.

larger sphere...what is bane?

And they also are not conscious of it's import and why it works against them pervasively.

conscious?, are they living? and what did you just say?

The market flows with a propensity. But that also means, clearly, then that opposites do not apply. You must, for the moment, regard what I say to you. Flush it down the toilet, later, if you must.

ok

The most important fractal comes up here.

fractal...there that word again...could it be replaced with the word, "point"


It, of course, is the carrier of the two above periodicities.

carrier?


What makes it so important is that it is asymmetric reasoning wise.

what?


The two variables yield combinations and permutaions that are not opposites.

what are you talking about I am totally lost now. and feeling inadequete. I want to understand and follow along

Further, these two variables are the driving forces of any market. Price and volume.

ok

For this set of combinations and permutations, I need to really plunge you into a thinking effort that is rock solid and unswerving in its logic. I will post it ASAP just to be able to separate it from the above temporarily. Later, I will try to amplify on scientist's posts here to give something specific to him to consider.



Jack, I want to think and understand ok? please help...maybe there is no hope. I know your thinking, what do I need to do for electric?.....he needs to go back to school....this is not my problem!

Michael B.

 

That book is an autobiography. I dont recall him going into any of his strategies in any detail.

 

Outer sphere.

This pair is asymmetric in nature. It I the carrier fractal for the first two pairs. I use a 5 min chart to display Price and volume, the two elements I pair.

To ease into the combinations and permutations of price and volume you first need to see that the relationship variables are asymmetric.

Pull up a chart to determine this. Look and see that the tall volume bar are associated with only one trend direction. Use ES today on the five min. All the tall bars are associated with short movement. Each blast of volume is followed by FR’s (failure to resume) when the volume drop back down on the next bars.

So I do four combinations and permutations of P and V. I use change as the variable for each. They are either “increasing” or “decreasing” This shows as a Jokari window of four cells and the asymmetry is demonstrated by the entries for the four cells. The entries which state what is next for price trend are not opposites as in the former pairs. I use “continue” and “change” as the cell entries.

Any trend thus continues as volume increases. When volume decreases, then the trend changes. An up trend becomes either a lateral or a down trend when volume decreases and vice versa. In a normal representation of a Jokari window the path of the movement is a lissajoux (2:1) which is a clockwise figure eight. Thus in this pairing changes in volume occur twice as often a changes in price. For whatever reasons this stuff is not documented frequently nor do people even know that this is the context of market operations.

NB: As I type (14:55EST) the short trend of the ES is going into a “long” modus. I asked you to look at today’s chart and observe the “short” nature for the day.

Summary.

By looking at three pairs of variables and their combinations and permutations, you get to have a context by looking through P,V sphere, through the DOM sphere to the scalping center characterized by the leading “squeese”/”stretch” of the cash /index offset value.

Because these pairs move in sequences of their combos and perms, you have a monitoring continuity rather than any jumpiness. Market tools will give you whatever instrument you will be needing to make money continually as you operate. I consider this to be four parts (two intellectual and two emotional) in a specific sequence of: monitoring by gathering information (three pairs); analysis (knowing where you are, what is next, and how fast the pace is); then making decisions (to do trades) based upon accumulated skill and experience (this is a feeling thing); and taking timely action (keeping orders current).

As you review scientist’s comments, you see how he uses the three spheres. He mentioned in an early post here that volume and DOM were important. You can read AMT and see how he uses the DOM and T&S in combo to get the job done. (he trades two fractals concurrently as you see in the current position ES contest). Others think he is cheating by trading “inside” his overnight positions during the day. This is just a statement of using a context and recognizing that the “carrier” can be traded concurrently with the faster moves all the way down to scalping.

As a mentoring exercise, I often “make” the person who is working with me share the trading. One of us is the button pusher and each of us individually focus onlyon part of the monitoring. We narrate to each other what we monitor to fill in the picture. I have multiple screens and multiple computers. This gets gathering and analysis shared and keeps us on the same intellectual page. For decisions (emotional stuff), we state them and the account computer controls are used to act on the part of the button pusher. Gradually, the responsibilities are varied and a “take over” occurs.

Looking at three pairs do sequences of four possibilities each, is a way of carrying out four personal steps repeatedly. Since the pairs are on different fractals of periodicity, most of the time the speed of making of money is set by what is continuing to happen. What we focus on, then, is the ending of things that are expected. Everything is in place for these possible endings; all that is required is to refrain from acting until there is no more money to be made. The prorata stuff, especially, is like the vernier on a gauge in some ways; it occupies you and gives you a better “read”.

I feel aMT’s comments on how long it takes for a person to get into any of these grooves is very pertinent. The ramping up to excellence is a direct consequence of commitment to accept you full potential.

It is clear to me that scientist’s mentor asked for the job. The reason has to do with the mentor’s personal realization that something good would come of the time spent. Scientist is passing forward his greatest asset to you all. His mentor knows he will. He has asked for recompense from you and many give it. What he is asking of us is to help each other out.

This year has been fun. Let push the boundaries a little here and there to make next year better for everyone. I hope the battles all end and everyone gets home to do their best for their quality of life.

 

Hi Electricsavant

You are so helpful to me. Your comments are very pertinent and I can see that I need to respond most thoughtfully to take care of business.

I think that most people probably have the same orientation to my stuff that you do. I can understand that I need to really work hard to bridge any gaps I create.

I do know that I don't do well in fighting the fight for brevity as well as getting across my views.