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can you scalp cryptos

  #5 (permalink)

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

The answer is undefined because the question is ill defined. The specific answer depends on what exchange, what crytpo, scalping technique used (market vs limit order), holding time, etc. Cryptos may be better suited for limit order scalping and "market making" techniques because some exchanges do not charge for limit orders and because you can place many small orders.

Beyond the basics, for market order scalping you need a certain amount of leverage, uncertainty, and bias. For limit order scalping, you need to be able to weight what the fair value of the product is and you need enough uncertainty so that you can get your fills.

In general, for discretionary style scalping you need somewhat predictable drivers of volatility so that you can effectively allocate your screen time. A general heuristic is that market order style scalping may be more feasible if your crypto has a strong directional bias while limit order style scalping may be more effective in range markets.

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