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On the ES, is a 3-4 point profit objective still considered scalping?
On the ES, is a 3-4 point profit objective still considered scalping? I always try to hold for bigger moves if they happen, but as a minimum I look for at least a 3 point move, and I don't take a lot of trades during the day. Would this still be considered scalping, or simply active trading? Thanks.
Can you help answer these questions from other members on NexusFi?
3-4 points could be just scalping if you are trading weekly charts for example, but considered very long position taking on a 1min chart for instance
I think you should look at it from a different perspective though...
Check how is your strategy doing, what are your KPIs and then you would know.
Are you getting an 80% to 90% win rate! and very small profit to loss ratio like 1:1 or less? Then you are most probably scalping...
Or perhaps, you are in the range of 40% win rate but profit to loss ratio is like 3:1 or something. This is definitely not classified as scalping
Either strategy is valid of course and gives positive expectancies, no need to worry about terminologies - scalping or not.
Just see what suites your personality and psychic Better! Some traders are very unconfortable losing and thus opt for a high win rate / low profit ratio performance, others are fine with the opposite, etc...
You alone would know what suites you better.
Cheers
Fadi
Successful people will do what unsuccessful people won't or can't do!
By most accepted definitions I don't think 3 points would qualify as scalping, but really what you can do is look at the average daily range and then figure what your "scalping" on each trade as a percentage of that range. I would say if it's under 10% it's a scalp but this is just a personal way of looking at things.
I really look at it as how long the trade takes as to whether or not it's a scalp. Usually trades that take under 30 minutes to an hour I'd consider scalps. I consider scalps when you're at your computer watching price from the time it goes in to the time it comes out. That's my opinion though.
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Having studied BPA, I see a scalp as anything that is less than a 2:1 reward to risk.
Personally I also tend to think of scalps as small duration trades. Few secs to a few mins in a trade is probably a scalp. For me in my entry and exit is in the same 5 min candle its a scalp.
