Why scalping beats any other trading style

Discussion in 'Strategy Building' started by yoohoo, Dec 7, 2006.

  1. RedDuke

    RedDuke

    I thought that trading between 50-100 ES contracts a clip would still allow 0.25 spread???
     
    #81     Dec 10, 2006
  2. My system is all limit orders and I cant seem to get the size larger then 30-40 contracts on the ER without getting no fills, even during high volume times. I have a direct connection to the exchange, so it cant be the connection issue. I am thinking of trying the NQ or YM. The ES is ridiculous, you have to give at least 2 ticks of slippage on every trade, 1 to get in and 1 to get out. Anyone have any experience trading large size on the YM or NQ, you think I might have a better chance with these instruments?
     
    #82     Dec 10, 2006
  3. nq is very thick. if u trade size u'd love the kospi, futures and options...latter thicker crap i ever seen.
     
    #83     Dec 10, 2006
  4. How about trading GEZ6 with huge volume? It barelly moves a few ticks per day and it looks like the LU or CMGI of the futures markets...
     
    #84     Dec 10, 2006
  5. Hi Yoohoo,

    Thanks for your advice. Currently I'll stick to minute bars. I have a pretty good reading of market flow by minute bars. For range bars, I'm not so sure. It seems that my brain is more tuned to time.
     
    #85     Dec 11, 2006
  6. I understand - it was a different planet to me too - I'd forgotten how strange it was. When you have time it's worth investigating.
     
    #86     Dec 11, 2006
  7. If the drawdown factor is considered, it is unlikely any other trading style can beat day trading/scalping. I've not found good information about the Sharpe ratio for different trading styles. I would imagine for a good discretionary day trader/scalper the Sharpe ratio can easily be more than 15 to 20, even higher. I'm unaware any other trading style can have such a high Sharpe ratio unless the trader is exceptionally good. How do you guys think?
     
    #87     Dec 12, 2006
  8. If the drawdown factor is considered, it is unlikely any other trading style can beat day trading/scalping. I've not found good information about the Sharpe ratio for different trading styles. I would imagine for a good discretionary day trader/scalper the Sharpe ratio can easily be more than 15 to 20, even higher. I'm unaware any other trading style can have such a high Sharpe ratio unless the trader is exceptionally good. How do you guys think?
     
    #88     Dec 12, 2006
  9. Good for you. I can't say I'm able to consistently extract $200 per contract for 20 minutes of trading.

    I agree though that sitting exactly 6 hours is not needed. If you have enough skills to make enough money during the first and last hours of day you don't need to sit in front of screen for 6 hours.

    But funny thing is the longer I do it (sit in front of screen) the more I like it and the more it becomes really interesting occupation rather than hard. :)
     
    #89     Dec 12, 2006
  10. bg514

    bg514


    This is the most important question of the entire thread.

    And it went unanswered.
     
    #90     Dec 13, 2006