Scalping

	Quote:	hanz
	do you guys scalp using the DOM?

I use the DOM acv ratio in combination with my felton trading MACD and Stochastic signals. At S/R price levels the acv ratio of 2:1 can "announce" some great areas to catch price reversal pivots with tight entries to the reversal pivot low or high.

[jperl]

	Quote:	maildigger
	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!

Check out the "Trading with Market Statistics" threads. There you will find a description of one scalping technique with a video of the technique.

[TRex]

In general, scalping ES is not a long term profitable strategy. By scalping, I mean a 1-3 tick profit goal per trade. The reasons are simple: most scalping systems have a negative risk/reward ratio and the more you trade, the more the odds work against you as you grind your equity down. This is a result of the extreme difficulty to trade a scalping method in a consistent way. Constant tweaking and emotional interaction are hard to overcome even for the seasoned professional who attempts to scalp in an electronic market.

We advise traders to trade less often and more profitably by taking an intraday position trade as early as possible (pre-market if possible), scaling out, making your goal, and calling it a day at the office so to speak. Should the first and second trade result in a stopout, then the goal of the next trade(s) is to recover the loss (and start fresh psychologically and financially) and then look for a position trade if the market will give it to you. The old adage "less is more" is most applicable in trading in terms of trades taken.

[brownsfan019]

You know what might be even easier? Just follow the tradingzoo guy - check out the performance! Since May, they have only had one down day and that was nothing! Talk about a winning streak. http://www.tradingzoo.com/performance.php

Wow! That's impressive!



I mean, for 6 grand, you can get that back in one or two days since they apparently hardly ever lose.

Heck....put the $6,000 on the Browns in regular season game 1 with Quinn at the helm and you will get???

$12,000 .... LOL!

[brownsfan019]

	Quote:	Fulcrum
	Heck....put the $6,000 on the Browns in regular season game 1 with Quinn at the helm and you will get???

Quinny is starting just yet. Frye has been named the starter and the situation will be reviewed week-to-week. In other words, your time in Cleveland is numbered Charlie.

[TRex]

	Quote:	brownsfan019
	You know what might be even easier? Just follow the tradingzoo guy - check out the performance! Since May, they have only had one down day and that was nothing! Talk about a winning streak. http://www.tradingzoo.com/performance.php Wow! That's impressive! I mean, for 6 grand, you can get that back in one or two days since they apparently hardly ever lose.

As a point of clarification, since brownsfan brought it up, the trades taken in the performance section are those of the moderator and president, Sam Baum (aka MP). We teach traders to become independent and not rely on a mentor after they become proficient. Frankly, I wouldn't advise anyone to join any educational service if their objective was to simply follow the trades of the teacher blindly like a parrot. What happens if the teacher meets a tragic death and then no longer calls trades. The student who hasn't learned anything and can't stand on his two feet is out of business.

[Soultrader]

	Quote:	TRex
	As a point of clarification, since brownsfan brought it up, the trades taken in the performance section are those of the moderator and president, Sam Baum (aka MP). We teach traders to become independent and not rely on a mentor after they become proficient. Frankly, I wouldn't advise anyone to join any educational service if their objective was to simply follow the trades of the teacher blindly like a parrot. What happens if the teacher meets a tragic death and then no longer calls trades. The student who hasn't learned anything and can't stand on his two feet is out of business.

I strongly agree. Careful attention must also be applied when learning another traders setups. This is because there are so many filters a trader can apply in deciding whether to take the setup or stand aside while the one following these setups have no clue. Intuition, market analysis, tape, volume, etc... Alot of information that gets processed inside a day traders mind can not be explained in full out words at times. I think educational programs and mentorships are great for developing traders because they can receive exposure on how a professional trader thinks, sees, and trades. Ive taken a few mentorships myself but most importantly is the traders ability to learn, absorb, adjust, and create his own style of trading and understanding of the market.

Regarding scalping, I think this is a necessary skill in certain market conditions. While intraday position trading is my priority, I do try to scalp the market using a smaller position size by reading tape and the price ladder. Im definitely not an expert in scalping techniques so am very interested in hearing more about this technique from good scalpers. What determines your entry? Exit? When do you cut your losses? etc...

[Nick1984]

I've been taking position trades on an intraday basis on the YM when I can identify momentun conditions but in cyclical days I'm trying to take scalps more and more often but I really need to work on developing a scalping strategy.

If we are just grinding the day away in a cyclical motion i just bracket the price action and scalp off the extremes. The first time price reaches a channel border I will automatically fade that position going for 5 quick YM points with a stop loss of 5 points (1:1 RRR). The subsequent 2nd or 3rd times price touches that chanel boundary without breaking through I have found that the moves tend to loose strength so these are higher probability fades.

Position sizing in scalping is the hardest part to master I think and that is what is going to kill you if you mess it up. I think when scalping you really need to keep it as simple as possible. Walter's "flip" trade is a great scalping technique that I use with some variation on a 55t chart or an 89t chart.

I'd like to hear more about the mentality of the scalper who goes in every day with a view of making 20 YM points per contract over X amount of trades. Why they choose this trading system over say a higher probability intraday position trade that has a high chance of getting +10 therefore reducing the amount of trades and thus commissions paid?