What kind of techniques do heavy scalpers use?

OK. I was just helping out someone who asked a question. Sorry if I offended you in some way.

 

I agree Frank. Sometimes I would see a print on ZN before ECO #'s released, but there isn't any edge for retail traders knowing this.

 

on a rare occasion like today ES lags YM in some instance, they are still in the same shape thus divergent is just not possible.

 

That is a divergence where the less liquid contract (YM) made a new high and the "thick" contract (ES) didn't go along. Many times you will see that in correlated markets where one contact is significantly more liquid then the other.

 

good eye, however that is ym 2m vs es 5m and Cferret is more interest in if they move in tandem or not, here is both contracts on 5m to anser that question

 

"Heavy Scalpers" are in and out extremely quick. Sometimes a few seconds, other times when they get what they are looking for they will hang with it a little long say, 2-5 min maybe.


The majority of my trades are under 1 min. I'll post may blotter in a spread sheet once I'm done trading so you guys can see what I'm talking about.

I think that will give you the best perspective.

 

Hope this helps.

Here is my blotter

 

There doesn't appear to be any lead/lag there.
The bars over some apparent price divergence are more a measurement of noise than signal.

 

Jack said


the futures index I trade lags well behind the cash index and the futures index that I monitor to be able to trade my lagging index. All of this is a very fortunate circumstance for me.


first of all jack I once did quite a lot of research on this issue.


Where is your cash quote coming from. Is is dynamic or are you getting updates. How frequent are your updates. last time I checked qcharts cash quote updated stochastically - periodically. It is not a dynamic caluculation.

do you know who has a faster quote?

Where do they get their "fast cash" from? (or at least they used to get it when I did the research)

does anyone have a way to calculate an even faster cash?

How come you did not explain to your students that your "leading indicator" is derived from a snap shot of the past.

 

I wasn't able to figure out the total P/L for your blotter, but I was wondering something more important, which is what your commisons were as a percent of your profits for that trading day?