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Hyper Scalping Profits


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Hyper Scalping Profits

  #11 (permalink)
 
lsubeano's Avatar
 lsubeano 
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good point monpere. I prob. should have communicated that better, but that's part of what I call managing the trade....profit and stop expectations.
I agree, that is bad math to win 30 ticks over a week or two of hyper scalping winners, and then 1 loser wipe all your gains.

I've done some hyper scalping, but this is more of a theoretical discussion as I'm curious what other people think, but it is tempting....with all the volitility in the markets, trading for 5 or 10 ticks in most markets happens in seconds during high volume trading hours.

I personally mostly trade off of daily charts, and scalp.


I believe mastering trade management is key to consistency.


monpere View Post
You never mentioned anything about stops. I feel that is a mistake a lot of traders make in their trading approaches, they concentrate on targets and not on stops (risk). I think about risk first, therefore I think about stops first, then I think about targets. If you get 5 ticks virtually every trade, but your stop is 30 ticks, each stop out requires 6 winners to make up for that stop out. When you take off a few contracts at 3 or 4 ticks on winners, and get a full stop on the whole lot for every loser, you may find the statistics are stacked against you in reality. You have to think of your risk as an integral part of your trading approach.


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  #12 (permalink)
 
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 monpere 
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lsubeano View Post
good point monpere. I prob. should have communicated that better, but that's part of what I call managing the trade....profit and stop expectations.
I agree, that is bad math to win 30 ticks over a week or two of hyper scalping winners, and then 1 loser wipe all your gains.

I've done some hyper scalping, but this is more of a theoretical discussion as I'm curious what other people think, but it is tempting....with all the volitility in the markets, trading for 5 or 10 ticks in most markets happens in seconds during high volume trading hours.

I personally mostly trade off of daily charts, and scalp.


I believe mastering trade management is key to consistency.

All my targets are 10-12 ticks, but my stops are 5-6 ticks, (2:1 ratio) all managed purely by ATM. I've never made a trade that was more 12 tick target in my trading career. You can scalp with 2:1 reward/risk ratio. In my opinion, scalping with less 1:1 r/r is a losing game in the long term.

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Last Updated on September 28, 2011


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