Average ticks per hour using the DOM? | Traders Hideout


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Average ticks per hour using the DOM?

  #3 (permalink)

North Carolina
 
Trading Experience: Beginner
Platform: NinjaTrader, Tradestation
Favorite Futures: es
 
Posts: 644 since Nov 2011


Ticks per hour makes no sense. Profit/loss is primarily determined by volatility, predictability, and trading costs. The problem you will run into scalping is that markets are very efficient. It is very difficult to overcome the costs of stop losses. Most scalpers will employee either of 2 methods: they will take a high tail risk (large risk to reward) in order to decrease the costs of the stop outs or they will trade with a larger size and smaller risk. You cannot make opportunity. I think you cannot just scalp in a mechanical way. If you scalp you have to be able to see and trade the big trades in the market too. If you scalp with the higher tail risk method then you will need a very large account to do this in futures. If you take higher tail risk, your returns will be more robust and you will be able to profit most days but some days you risk having significant losses. If you are using stops, you will have more large losing days but they will be contained in size. The one good aspect is you may be able to trade with even less risk then you thought you'd need because you are not likely to be able to recover. It means if you stop early enough, when trading with the stop losses, you can might be able to make even more with less. I think you have to be able to trade whatever the market is giving you though.

One metric that might be worth tracking is your trading costs in relation to your gross profits. You obviously want to keep that below something reasonable like 30%-40% even though it might go as high as 50% but generally you will not be able to keep net profits when it gets above 50%. But, I'd emphasize you have to actually be able to trade.


Last edited by tpredictor; April 17th, 2018 at 12:57 PM.
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