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can you scalp cryptos

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Market Wizard
Boca Raton
Trading Experience: Advanced
Platform: Variety
Broker/Data: Optimus Futures, LLC
Favorite Futures: Futures
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tpredictor View Post
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.

In general, I agree with you. However, no Scalper relies in reality on being a maker (limit) but also being taker (market orders). The problem that ALL crypto exchanges have is the ridiculous commissions they charge. Namely, .03% to takers.

To comprehend the cost of this think of this think that a $100K notional value has to pay $300 per transaction. Now think in futures an ES Emini SP contract with a notional value of $140,000USD (roughly 2,800 level as I write this X 50). You pay about plus/minus $4. This is .00285%

So a low-level trader will pay 100X more on each transaction and almost no leverage is provided. Avoid Crypto like a plague for scalping purposes.

Matt Z
Optimus Futures

There is a substantial risk of loss in futures trading. Past performance is not indicative of future results.

PM with any questions about optimusfutures (800) 771-6748 (561) 367 8686. THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING.

Last edited by mattz; June 12th, 2018 at 12:46 AM.
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