Nothing to something scalping system

[MRC & Co]

With 3 or more you can take one quickly let the other go at 8-10 and trail a stop for the last one to get the odd really big winner.

Yeh, pretty much exactly how I've been doing it. But I find most trades I am comfortable just booking profits for 1 contract, just trying to get out before a reaction (or cut and go short if I think the reaction will be big enough). Then every so often, I will get a sudden feeling that something big is about to take place and then start loading up, many nothing moves and I get out. Then there are the ones I am not on, which I will try and just let go.

 

[steve2222]

TH, might b hijacking the thread slightly, but ...

1/ what charting software and data feed do you use?

2/ what is your equipment set-up? PCs, laptops, screens etc

 

[Trembling Hand]

Ninja Trader feed with IBs data.

Equipment.
http://tremblinghandtrader.typepad.com/trembling_hand_trader/2007/12/present-time.html

 

[steve2222]

Ninja Trader feed with IBs data.

Equipment.
http://tremblinghandtrader.typepad.com/trembling_hand_trader/2007/12/present-time.html

TH, are you placing your FUT orders via NT or directly with IB?

Presume your CFD trading orders are done directly with the Australian CFD broker. If this is the case are you still using NT for your analysis eg DOM etc?

 

[Trembling Hand]

NT is great for execution on the US futs like es but not much chop for SPI and HSI because they only show 5 levels from the first bid/ask. That makes it not suited to thin order books like he SPI and definitely no good for HSI. They also don't have hot keys which I needed.

So unfortunately I have to execute using IB's Booktrader.

 

[RobinHood]

But definatley, on big volatility days with size, you can take incredible amounts out of the SPI, just shaving off the edges of the 'paper' moves.

what do you mean by shaving off the edges of moves made by paper?


as in catching the a meaty part of the trend, or scalping reactions/corrections?

 

[Trembling Hand]

I didn't trade the open with this account today because of the thin market but did have a little tickle the last hour. Not really a great day to trade with such a low volume market. Made me very flighty and flicked the odd winner a bit too soon but in any case still an up day.

 

[tech/a]

I think the key seen here T/H is consistency.
Chipping away a bit here and a bit there with the odd run.

I noticed the majority of the 155 points down happened to noon.
From then flatish in comparison.Do you find that huge volatility like we have now is better to trade than the 20 point days?

Do you find yourself trading more or less in these volatile times?
Is it harder to read?
Is it worth running a contract or so over a longer time frame separate to and in conjunction with your chipping away technique? (Obviously once in profit let it run just move a stop with it).

The point I'm making is that if you take out just the 6 trades at 4 pips or more then its a bad day.
As I pointed out before its the big wins that make this profitable. Just a thought of trying to have at least a few that run longer and give you that safety/profit factor.

 

[Trembling Hand]

I think the key seen here T/H is consistency.
Chipping away a bit here and a bit there with the odd run.

I noticed the majority of the 155 points down happened to noon.
From then flatish in comparison.Do you find that huge volatility like we have now is better to trade than the 20 point days?

Do you find yourself trading more or less in these volatile times?
Is it harder to read?
Is it worth running a contract or so over a longer time frame separate to and in conjunction with your chipping away technique? (Obviously once in profit let it run just move a stop with it).

Yeah Tech consistency is the key. I build profit through the day. As I build it I get more aggressive. If its not working I don't push it. The important think is not to lose money. Once I get some in the bank I trade differently. The last couple of days haven't been that great for this method. Today in spite of the large range day it was a crap day to trade as the volume was way down. When the big boys come out to play is the time to scalp. I'm thinking they may be back tomorrow.

As already stated I do trade differently with the Futs. As I have a much bigger position I do trail a stop for the last couple of contracts. The other thing is many of the trades will be the same move/pattern/idea with a couple of entries.

The point I'm making is that if you take out just the 6 trades at 4 pips or more then its a bad day.
As I pointed out before its the big wins that make this profitable. Just a thought of trying to have at least a few that run longer and give you that safety/profit factor.

The thing about that scatter chart is when I have a good day there will be a hell of a lot more above the 10 points mark. The last 4 days in spite of being positive actually haven't been that good. What you are looking at are bad days!!

 

[tech/a]

Fair enough.

 

[skc]

TH,

Why are you so definitive that they will shut the account down at that level of trading?

Because they always do.

What does a provider say when it shuts you down?

We regret to inform you that, due to your trading success, we are shutting your account. So long, sucker.

 

[Trembling Hand]

So long, sucker.

What they do is slow down the executions. You go from an auto execution to the manual desk. Makes it impossible to trade. You are trading against them.

 

[MRC & Co]

what do you mean by shaving off the edges of moves made by paper?


as in catching the a meaty part of the trend, or scalping reactions/corrections?

As in just jump on the start of the moves of the institutions. They don't care about getting a few ticks worse price, so you just have to shave the edge off some of their profits.

 

[Trembling Hand]

Just a heads up Gents ya gonna want to have a check the results of this lata

 

[MRC & Co]

Just a heads up Gents ya gonna want to have a check the results of this lata

LOL, you have some CFD trades on in that move? I just had a 10 lot for some of it, ha ha ha ha ha ha ha! Best day so far!

 

[Trembling Hand]

Just another day in Paradise :bowser:

Have had a big futs position riding longs since the open so have been tapping away scalping the cfd account.

 

[skyQuake]

Great stuff!

 

[MRC & Co]

Just another day in Paradise :bowser:

Have had a big futs position riding longs since the open so have been tapping away scalping the cfd account.

ha ha, I bet!

Guess that was your daily lot being covered in that long down 5 min candle! A lot of people getting out there I would think.

 

[amy997]

Hi TH

When you go long off the open on mornings like this morning do you use a stop initially or do you let the trades go into profit then apply a trailing stop later on?

If you use a stop how many points do you allow?

 

[Trembling Hand]

Ok so I'm posting these results with some reluctance. As I said all the results will be verified by a Mod so when the statements come through they will get them.

I need to explain my system a little bit before I continue so as to put todays action in context of how I trade. I have three basic rules to my system,

1. I never want to start the day having to get back more than 1% of my account from the previous days trading. NEVER.

2. I want a system that has few as possible down days.

3. I want to be very aggressive with my trading capital.

Now point 1 and 2 you would think would rule out point 3 but it doesn't have to. This is how I manage to stick to all 3 rules.

Firstly point 2 as I have stated already becasue I trade so often eventually the stats of a positive expectancy, although slight, system works in my favour. I may be down at some points during the day but mostly it works in my favour.

Point 1 I have a daily stop of 1% of capital. If I lose that its over for the day. PERIOD. Now the down side of that is I can easily have 5 losers in a row at the start so I trade very very small to start with so as not to be taken out before the slight positive expectancy has a chance to work in my favour. As I build profit I increase lot size.

And as you will see this is where the aggressive use of capital comes into play.If I have 50 or more ticks in the bag I increase size then again at 100 and on and on. The end result is if I can keep it together I can have some really large days compared to my MAX Daily Risk. Works for me.