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Indicator to scalp ES for a few ticks


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Indicator to scalp ES for a few ticks

  #11 (permalink)
 podowitz 
Atlanta, GA
 
Experience: Beginner
Platform: Ninja Trader
Trading: es
Posts: 57 since Feb 2012
Thanks Given: 45
Thanks Received: 19


darkmoon47 View Post
Hello,
I am new here. Just wanted to get some help if possible.

Basically, I wanted to get an indicator which solely shows up/down trends.

I basically trade want to trade 5 contracts in ES, with 2 tick PT, a few trades a day.

So, if I have some good indicators, I can be successful. Of course, I am aware of risks as well.

Thank you.

Darkmoon;

All the previous comments are excellent and offer good advice. Probably looking at order flow and T&S are great tools; like any methodology they require learning, training and lots of practice.

There is no single indicator that is predictive, not even on its own able to determine probabilities. However, I think that a scalping strategy may work with a combination of indicators and perhaps a slightly different targeting expectation.

If you target 3-5 ticks on the ES, maybe 6-7 on Crude, 4-5 on the 10 year note, you will be looking at small trades in the $75-100 range. This range may possibly compensate for costs and stop-outs, yielding a small net positive for the day. Maybe.

One simple setup is as follows (I call it POSYS -- Podowitz System, get it!? What arrogance. I use Ninjatrader).
-- Set your Fast Stochastics to 10,39 (K and D respectively). Smoothing is 1. I make all plots transparent except the D.
-- Put an 8 period Exponential MA on your chart
-- Put a 50 period SMA on your chart
-- Add whatever references to Support and Resistance, Supply and Demand, Pivots, High and Low Value areas, Volume Zones, etc....anything that will likely stop price -- that you feel reliable. You don't want to enter a trade with no room for price to move, even when scalping.

Process:
-- ONLY trade in the direction of the trend as indicated by the 50 SMA. Only trade long above it; only trade short below it.
-- Your trade signal LONG is when the D line crosses up over the 20 line. Your trade signal SHORT is when the D line crosses down over the 80 line.
-- Then your Entry is at Market when price crosses the 8 EMA. If you're meticulous about trading with the trend (an upturning 8 EMA, AND an upturning 50 SMA, you should get a few ticks, maybe a point or more (e.g. the ES).
-- Often when the 8 EMA crosses the 50 SMA, there is price movement.
-- Look for price to retrace to the 50 EMA; when it does and resumes the trend, there will be scalping opportunity.
-- Don't Buy at a HIGH; Don't Sell at a LOW.
-- When trying something new, ONLY trade on simulation, track your trades and ONLY go live after you have a consistently high ratio of winning trades to losing trades. Look at a Sharpe Ratio to help quantify.

NOTE: I cobbled this together from a variety of sources. This is just barebones of how I might personally consider scalping using indicators. For normal trading, I add momentum, and other tools, and look at Momentum and Supply and Demand on a higher timeframe. There's also a whole world of price-action based, indicator free methods to learn about, too.

I HAVE NOT BACKTESTED THIS as described (frankly, I don't know how). I have only used it on simulation, and not with the intent of scalping. Mostly, it's just a lot of talk. But it may help you approach scalping using indicators as opposed to a Time & Sales/Order Flow protocol. So Caveat Emptor!

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  #12 (permalink)
darkmoon47
Toronto, ON
 
Posts: 3 since Apr 2017
Thanks Given: 2
Thanks Received: 0

Thank you kindly, dear everyone who replied with wise words.

I do trade with a system consistently. The idea to trade this way was just experimental; I started doing it in SIM mode only, of course.

For everyone here, there are different rules/systems/strategies which you all apply for your trading.

For me, I just try different approaches to maximize my profits. This being one of them, maybe hit or miss, I don't care as it was a paper trade with different rules. I believe in evolving, even though whatever I am using to trade in real account does profit me.

Now that I know what to expect from this strategy, I will keep back testing with other rules I follow.

Thank you again all.

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  #13 (permalink)
 
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 freedomtrader 
N.Texas
 
Experience: Advanced
Platform: NinjaTrader
Broker: Global Futures
Trading: ZB
Posts: 39 since Aug 2010
Thanks Given: 174
Thanks Received: 6


Do yourself a favor and read post 6 & 7 again and again and again. Let it sink in.
Otherwise, do your SIM trading long enough to figure out exactly what kind of trader you are,ie your personality, scalp,day,swing, so on. But do put a limit on the amount of time you SIM. Nothing but nothing can can prepare you for the emotions of "pulling the trigger" ...like pulling the trigger, and managing the trade. Every day is unique. Trading is like fishing. There are a lot of lures out there and they all can catch fish. You just get more confidence from some than others. Find what works for you.
Good "fishing"

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Last Updated on May 14, 2017


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