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I trade the ES but I'm not a scalper. I was wondering what kind of entry techniques scalpers use (tape reading, candlestick patterns,...)? Is profitable scalping possible with a risk/reward <1 ? Who has expierience with scalping (target 2-6 ticks) and wish to share his/her experience!  |
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Hi Mail. I'm experimenting with ES, taking usually 4-8 ticks from each trade. My average loss is less than my average gain, and I run 55%+ on winrate. I hope to get better, but it's a start. I use price and time/sales only, mostly using limit orders against daily floor pivot levels. When the price is above support, for instance, and seems to be staying in the channel under the next up pivot line,I'll enter a buy limit order just above the support line. It's a pretty standard way of trading, and many times I'll get filled long on the bid and sell at the ask, so slippage is controlled to some degree.
It's certainly not a very sophisticated method, but I haven't been able to make oscillating indicators work reliably. They lag so much that the move is half over by the time I can get in.
The distance between floor pivot levels and their midpoints is usually about 2 points, so that's my typical range of profits except when the tape indicates more trend strength at the pivot. Losses are usually stopped at 4 points, which is easy to calculate because the stop loss point is just on the other side of the pivot line.
Like to hear from anyone using this simple S/R method.