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RobinHood

Position Trader Seeking to Become Scalper

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Background:

I just turned 20. I've been trading for three years now. Not consistently. I've made more than I've lost. Traded US stocks. Recently begun trading CBOT mini-gold.

 

 

Why I want to scalp and what I want to achieve?

I just missed out on a gig at a prop firm, this was not due to my trading, but along with a recent drawdown I've experienced it got me thinking...

 

I want to trade on a really short-term time-frame as I can internalize market patterns much more quickly than position trading for days, weeks, months. I will almost exclusively follow one favored instrument after playing with a few options and then once consistency is attained I can look to expand. However, this is where I need assistance.

 

 

I'm in Australian time-zone and I've only got 20k from trading, so I'm obviously very limited in terms of appropriate risk management, what are my options?

 

Some possibilities:

SPI, Hang Seng, Nikkei, KOSPI (even when using a few tick stop these are all limited to the simulator until I get enough funds for position sizing)

 

I can however handle a few of the e-minis (time-frame is the only problem here). Finding something allowing 0.25% position risk should not be too hard.

 

 

Rough Plan for world domination:

  • Find good data feed for futures
  • Play on the Ninjatrader simulator for a few months (screen-time watching DOM etc)
  • Read more books
  • paid mentoring??? nahhh?
  • enroll in economics at college just because there is a tribalistic emphasis placed on degree and I have no choice
  • Apply for the prop firm trainee intake again next year if I have not blown up

 

 

 

thoughts?

guidance?

 

P.S once I begin trading I'll put it up in the journal section (you may get to see a blow up so it will be fun! but be warned I'm a tight ass with risk management, mostly).

and for those who are interested I did a complete post analysis of my trading to date on my blog, http://www.yontrade.blogspot.com

 

 

 

 

cheers

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Having read around the forum I noticed mini-nikkei, topix and hang seng mentioned - but the only broker apparently letting you use them is IB?

 

I have to wait another whole year before moving to IB.

 

and just wanted to clarify the above post (as I can't figure out how to edit it): When I said time-frame is only problem with handling e-minis I meant time-zone.

 

and internalizing market patterns - I mean being able to experience and master the different conditions in a much shorter time as opposed to a few cycle / years with my longer-term position trading.

 

and does anyone know of a simulator which lets me work with historical data including level 2 ?(I would like to be able to test out how I perform on the nastiest days).... Most sims only seem to offer it on live data

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if you're looking to scalp or even trade short term intraday outrights, I'd strongly suggest you sim trade for an extended period of time to enable you to develop your edge, before you put any capital at risk.

 

Can i ask why you were looking to the asian markets? you might want to also consider the european markets, specifically the eurostoxx & dax for stock futures, and the bund/bobl/shatz for fixed income - these are all commonly scalped in prop firms in London. Also the timezone isnt too bad, as these markets open early evening AEDT.

 

For a simulator, you could perhaps look at NinjaTrader as I beleive the sim is free, and you can use it with IB data.

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Mini DAX? I don't believe there is such a thing.

 

I would recommend Eurostoxx or Bund. Low margin (most broker's will offer margin similar to the Emini's), low tick value, highly liquid, lower risk.

 

Nearly all the London prop firms start the new guys on the Bund or Eurostoxx for that reason.

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erm... I posted in here with some comments this morning, but was advised my posts were being "moderated" whatever that means. Anyway, since the post hasnt yet appeared, it may as well be deleted since everyone else has already answered the questions.

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any brokers apart from IB offering these?

 

I only found one: Amp futures.

 

But there are no comments on any forums about this broker which makes me concerned.

 

Worst case scenario I think I'll just have to keep position trading with real money and simulating scalping for a year until I turn 21 - but then I will hardly learn as much.:crap:

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any brokers apart from IB offering these?

 

 

Eurostoxx and Bund?

 

- Open E Cry

- Infinity / Transact

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Yes, please clarify what 'these' are?

 

AMP were absolutely useless when I queried them about Asian markets. Not only did the guy take over a week to make first contact to my email query but he didn't answer my questions and wasn't even aware of the mini Nikkei contract. I mean it is only the highest volume futures contract in Japan - lol. After several email queries to him, and still not getting any answers to my questions, I gave up and filed AMP in the worse than IB customer service category. If you are trading USA products, maybe you will have a different experience with AMP, but if you are not - be very careful with this crowd.

 

My best regards,

MK

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'These' - schatz, bund, bobl. I would've liked mini nikkei, SPI, mini Hang Seng (not sure if this one even exists), but I don't think that's gonna happen until I can move to IB.

 

schatz looks really good for my account size - except the thing look like it hardly goes anywhere! something I would have to work orders on alot as opposed to buying @ market. Can I even pick-up that skill through simulation?

 

 

and any links in terms of recommended reading (I don't mean psychology or T.A books...) - market mechanics, working orders, info on bots, level 2 tricks etc or is this stuff I just have to pickup from some screen-time?

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'These' - schatz, bund, bobl. I would've liked mini nikkei, SPI, mini Hang Seng (not sure if this one even exists), but I don't think that's gonna happen until I can move to IB.

 

Hi RobinHood,

 

Yes there is a mini Hang Seng. Yes, IB really seems to be the only competitive choice offering this variety in Asia. The fixed income products on Eurex are very competitive.

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