Webinar: FuturesTrader71 (FT71) Morad Askar on Getting Started Scalping

October 24th, 2014, 11:12 AM

Koepisch

Many thanks to @FuturesTrader71 presenting this webinar. Looking down to the single trade stats is my way to go too and i could confirm many of my own thoughts.

Thanks, Koepisch. I hope you found it useful. Thanks again to Big Mike for inviting me on.

I'm also very happy that my partner Anthony and Mike have worked out an arrangement to support this site by becoming a sponsor under Stage 5 Trading. We have wanted to do something with futures.io (formerly BMT) for a while and now is the time.

Cheers!

October 24th, 2014, 11:33 AM

steelchueh

If I am a leasing member,, do I have to trade over 2000 per month?
If I trade 20 a day, 400 a month,, then 325/400 + 0.93 = 1.7425 per round.. ,, might lower current fee up to 50%.
Is the above right?
Thanks

Hi Steelcheuh,

Using the Excel Solver feature and setting the cost per year for non-member equal to a leasing member, it shows that the break-even point at current leasing rates ($325 per month for IOM seat + $2000 application fee) is 353 roundturns per month for the 1st year. This translates to around to around 17 roundturns per day. Remember this includes the application fee that would be a cost on the 1st year.

After 3 years, the breakeven point is 274 roundturns per month or 13 roundturns per year.

Owning a seat for 3 years only makes sense if you are doing 308 roundturns per month.

Hope that makes sense.

FT71

October 24th, 2014, 11:35 AM

tulanch

Wondering FT71 thoughts on ASK and BID size changes as indication of a potential move given the proper market context

This is very hard to read in this market. It used to be very readable and useful back in 2000-2004, but it is just noise now. There are systems that are executing size while flashing fake bid/ask but still executing so are not subject to violations of Rule 575.

In short, not very useful....

October 24th, 2014, 11:37 AM

FuturesTrader71

Hi Steelcheuh,

Using the Excel Solver feature and setting the cost per year for non-member equal to a leasing member, it shows that the break-even point at current leasing rates ($325 per month for IOM seat + $2000 application fee) is 353 roundturns per month for the 1st year. This translates to around to around 17 roundturns per day. Remember this includes the application fee that would be a cost on the 1st year.

After 3 years, the breakeven point is 274 roundturns per month or 13 roundturns per year.

Owning a seat for 3 years only makes sense if you are doing 308 roundturns per month.

Hope that makes sense.

FT71

Don't forget the CME professional fees, depending on your setup it could be substantial with multiple front ends -- based on my current understanding.

Mike

October 24th, 2014, 12:07 PM

Shamal

Mike: Thank you for posting the screen shots, makes it much easier! I like everything that Morad does in webinars, he's a thoughtful hardworking guy, and been a great person to learn from. This webinar is no exception, a fine piece of work, well researched and he's speaking the truth, for me; one that is hard to look in the eye, sometimes. I still see room for day traders to scalp / day trade, if they can find a comfortable setup that works and makes money. Adapting to the HFT techniques and tricks is an ongoing challenge for everyone in the shorter time frames.
The # 1 thing I took from this was not letting a loser run, and spoil a string of very good trades. I've done that too many times, and it's the emotional capital that I think may be the real cost, outside of the capital loss. His analysis of expenses is very helpful for us all, I would think.
The definition of scalping can vary a bit, many see it as the 2-4 tick trades, working inside the algo rotations. I believe I saw Morad working what I would call trades, not scalps, looking to get 4-6 point moves or better. Regardless the man is a wonderful asset for me, here at futures.io (formerly BMT).
Thank you for having him again, Mike !

Awesome feedback, Shamal. Thank you! And I agree that scalping is relative as far as time frame or price targets.

Since 2009, I have taken it upon myself to come out into the public and really stand up for what trading really is (this happened after I wasted $2,500 on a seminar that was worthless). My goal is to keep traders involved with the market but in a sustainable way. This is what this is about for me. This job is not easy, but it truly is simple. Our minds like to complicate it and bring certainty into an arena that lives on probabilities alone.

Wishing you the best of luck.

FT

October 24th, 2014, 12:13 PM

TurismoTek

Great stuff,

Thanks Mike and FuturesTrader71,

Most interesting was the regressive sizing. That is awesome information for an intraday trader.

Also, respect for FT71 for the way the -48 ticks didn't affect him and his composed, in control approach.

For next time - I'd time to see some more scalping, but using FuturesTrader71's actual platform and him prepared to show us as best as possible his actual scalping activities, or as close to such as possible.

Also, "I'm missing a tick stream and a market flow" can this comment be explained with a bit more detail?

Overall: Really interesting to hear what FuturesTrader71 had to say about scalping!

Cheers guys,
Turismo

Thanks Turismo.

I came into trading as a scalper, so this is an area that I know extremely well.

As far as the tick stream/market flow, my comment here relates to the fact that I was running the reply at 10x speed so that the trades were moving away from my objective faster than normal. I was missing a tick stream that would show me the velocity of the prints in any given direction (helps show aggressiveness and interest) as well as a volume delta chart to show which way size is firing off more.

Also, I scalp in the context of my key trading ideas for the day. I chose 10/13 to trade at random. I don't think a demonstration is valid where I hand pick the day and the setup/context since I already know what will happen and it seems to me to be a fake way of demonstrating how things run in real time. I would have preferred to have someone request a day and time at random but I don't have much replay data in Ninja (my main trading platform is the S5 Trader, so Ninja is not a comfortable tool for me).

However, given a chart with profiles and the key levels that I mark, I think it would be easier for me to outline what I expect vs. what is happening and why I'm reacting to it. I'm covering this all in the upcoming Trader Development Program I'm initiating over the next few months. This will be much clearer at that point and it is more usable information, in my opinion.

Best regards,
FT71

October 24th, 2014, 12:21 PM

OpalDragon

Where did Morad say that you can get the Trade Analyser..? Can we buy that somewhere?

Thanks in advance!

Hi OpalDragon,

Just like Mike said, it is a prop tool that is only available to S5's traders. You can get more info on my brokerage here.

October 24th, 2014, 12:24 PM

kurucz

The webinar had the right focus.

The most important topic for me was the S5 Trade Analyzer tool. Some of the functions are already implemented in NT in the Account Performance section. Like MFE MAE Profit CumProfit. But not the Theoretial Average. And you have to generate it every time. The S5 tool seems to be in realtime.

There are so many programmers here in the forum. Somebody should code this. A new indicator project. The alternative would be that S5 sells it. Or some interested Traders in the forum do a crowdfunding to get the tool created.

Or you can simply join Stage 5 Trading and have it for free. The product is proprietary and it was created by me for my prop shop/ prop traders. The results of the TA are stored by our online trading clients and are sent to me when they are seeking analysis or help. This is the real value of the tool above and beyond what it is telling you in real time while you trade.

Oh... and the S5 TA has copyrights.

October 24th, 2014, 12:26 PM

podski

FT71 is a great presenter and is remarkably consistent in both style and content. He is very "on message".

This was another great Webinar.

The live trading idea is good. However it was all a little bit freestyle. No real plan outlined, no stops, wrong charts, new product etc. I of course understand that the point was to give a general idea and to demonstrate the Analyzer (great idea that fills a massive hole in the Ninja 7 basic functionality). Don't get me wrong .. it served the purpose very well but if we were to see more of that it needs more context.

In summary, it's interesting to see a little more live trading but to base it on a more structured plan.

p

Excellent points! Yes, this wasn't meant to be a "let's look at my scalping plan and copy it" but more on the basics of scalping and the tools that I use. Context was definitely missing but that was on purpose. The goal was to show that cutting losses/managing risk allows for the opportunity to catch a runner that makes the risk worthwhile.

October 24th, 2014, 12:27 PM

Big Mike

Don't forget the CME professional fees, depending on your setup it could be substantial with multiple front ends -- based on my current understanding.

Mike

I'm not 100% sure but as a member, there is a break on fees. Anthony would know better.

Webinar: FuturesTrader71 (FT71) Morad Askar on Getting Started Scalping

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Webinar: FuturesTrader71 (FT71) Morad Askar on Getting Started Scalping