1 tick scalping strategies

This is a discussion on 1 tick scalping strategies within the First Steps forums, part of the Reception category; No problem micoll. At that time we also had fast service by telephone and anyway I was working near the ...

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Old Aug 27, 2008, 4:16pm   #31
 
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No problem micoll. At that time we also had fast service by telephone and anyway I was working near the floor in an "upstairs" office.

The problem was that nervous traders interpreted "Carrier lost" -- which normally means that the line is down -- to literary mean an aircraft carrier was lost due to a war situation. Next tick was 100 points away.

Ron
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Old Aug 27, 2008, 4:22pm   #32
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Originally Posted by ronblack View Post
No problem micoll. At that time we also had fast service by telephone and anyway I was working near the floor in an "upstairs" office.

The problem was that nervous traders interpreted "Carrier lost" -- which normally means that the line is down -- to literary mean an aircraft carrier was lost due to a war situation. Next tick was 100 points away.

Ron
I've got a plan, and it involves scissors...

That's kinda funny... from a technical/networking person point of view anyway
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Old Aug 28, 2008, 7:08pm   #33
Joined Dec 2006
forget about scalping bund after 5, i just got caught on 6 tick move on near full size when i was short!! way to ruin my day, bund.
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Old Sep 7, 2008, 9:28pm   #34
 
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Scalping Ticks?

I am a position trader and I have a successful strategy that is automated, I am in a trade for a day tops, I recently rolled out a scalping strategy that produced very good results on a 5 year backtest scalping 1 ticks in the e-mini, the only problem is that I am concerned about slippage I called a few friends looking for anybody scalping 1 ticks using automated strategy, no luck so I Googled "scalping ticks" in search of anyone who is scalping with limit orders or at market to see what kind of success you may of had and this site popped up, obviously you are burdened with the challenge of getting filled on limits but is it feasible?

I generally experience some slippage on the DAX regularly, but I am in for a day so a few points of slippage was ignored largely on my part and the DAX can get rather thin at times. So my biggest question is what type of slippage are any of you scalpers seeing on emini's, and is it safe to assume that slippage is less likely in more liquid markets such as TY, E7...

normally during the backtest I am assuming I will get slippage on every single trade in an effort to try and replicate worst case scenarios, but in this case it is impossible to have a winning strategy on historical tests with slippage included because It is set at 2 ticks of slippage and I am only scalping 1 tick, I also cannot predict when I will get slippage, so it leaves me wondering if the strategy can be automated or if it should be left to 100% discretion or if these results are all an illusion, which brings me to my next question, Do you get slippage pretty frequently? rarely? semi-regularly or what?

I have sat next to plenty of guys who scalped ticks all day, so the style and the issues that come along with that style I am not familiar with, these guys were also tape readers, they did not use any technical's at all and that was a very interesting style of trading with super high frequency..
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Old Sep 8, 2008, 9:12pm   #35
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Scalpers don't use an automated strategy because they're scalpers. That pretty much implies complete discretionary trading. You're not going to find an automated system that works.

In theory, you won't have slippage issues because you just work the bid or offer and if you're hit, you're hit. If not, you miss it. The problem with 1 tick scalping is
a)you have to be right a lot
b)you have to give the market a little room sometimes...ou may make the right call but someone might panic and bail out of 300 or 400 and push the market 2 ticks against you...then it comes right back.

Plus, there are plenty of times when you should not take 1 tick because you're on the right side and the trade is good for 6 ticks or more.
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Old Sep 9, 2008, 8:29am   #36
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so sfl trader what is your setup?, When micro scalping i use a stop 1 tick away from TA pivot (normally 4 tick stop) and go for a 2 tick profit target, like you say though I have to be right around 80% of the time to make a profit and sometimes like you say the trade can be worth more........Be interested to know your style regarding stops and targets.


cheers

jason
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Old Sep 9, 2008, 3:26pm   #37
 
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Originally Posted by SFL Trader View Post
Scalpers don't use an automated strategy because they're scalpers. you may make the right call but someone might panic and bail out of 300 or 400 and push the market 2 ticks against you...then it comes right back.

That makes sense..... Currently the setup is a breakout of Fibs on multiple time frames, the system enters market on breakout and immediately places a limit to exit 1 tick away from entry, I have a 4 tick stop. 83% wins but a sick amount of trades 5000 in 1 year, 25000 in 5 years.
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Last edited by Net Trader; Sep 9, 2008 at 3:36pm.
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Old Oct 8, 2008, 7:52pm   #38
 
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hhahahhahahahahahahahahahhhahahhahahahahahaha,,,,, ,,,,

This is the HOLY GRAIL for scalping.....

I have really a super scalping system for one tick profit. here it is:

01. Go for a broker who charge only 5 or 6 USD commision. (yes there is One who is charging,, My broker.... I wont tell you the name, you have to search for it)

02. Now trade 6J (Japenese Yen currency Futures)

03. My Broker's Software allows me to use Bracket order that automatically buy/sell @ Market and within micro seconds places the limit for profit.. I have predefined the limit like 0.001 this is known as 1 tick for Yen.

04. Now I look candle sticks for 5 min Chart.

05. I just take a general look for the trend. I go with the trend.

06. When ever candle goes opposite to trend ,,, there I make Buy/Sell for the current trend.

07. Within seconds I earn 5 dollars.. 20 trades per day ..... 2500 USD /month without commision.


All you have to do is to search for that broker. I wont tell the name.. But it exits....

Pray for me....
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Old Oct 8, 2008, 8:42pm   #39
Joined Jul 2008
scalping... i cant think of a worse way to spend my day... i take my hat off to any of you that do this type of trading... i prefer the easy life with a trade here and trade there for nice runners and bread and butter type trades... best still i have time to enjoy life..
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Old Oct 28, 2008, 8:27pm   #40
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Originally Posted by jayjay121 View Post
so sfl trader what is your setup?, When micro scalping i use a stop 1 tick away from TA pivot (normally 4 tick stop) and go for a 2 tick profit target, like you say though I have to be right around 80% of the time to make a profit and sometimes like you say the trade can be worth more........Be interested to know your style regarding stops and targets.


cheers

jason
My stop is where I know I'm wrong. This is usually never one tick away. I tend to pick spots where I know my call is probably wrong if the market goes 3 or 4 ticks against me. Don't really ever have a target. I just ride the momentum and when it slows down, I get out. In terms of setups, I look for places where I know people are going to bail. If the market is going up and I know, most likely, some shorts are going to bail out if it goes through a certain price, then I'm looking to buy there.
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Old Oct 28, 2008, 8:31pm   #41
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Originally Posted by Net Trader View Post
That makes sense..... Currently the setup is a breakout of Fibs on multiple time frames, the system enters market on breakout and immediately places a limit to exit 1 tick away from entry, I have a 4 tick stop. 83% wins but a sick amount of trades 5000 in 1 year, 25000 in 5 years.
You will do a sick amount of trades and you must have ultra-low commissions. Even still, you're not being realistic. Backtesting is pretty worthless. I know from experience. How do you decide to take a 1 tic loss? If it's 500 bid by 250 offer and you're short and 150 print into the 250, do you exit? Do you wait for that price to go bid and then work the bid? If you don't get filled on that bid, do you hit the next price within a certain time frame?

The market is going to fluctuate and you really do need to give it more room as well as shoot for bigger winning trades.
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Old Jun 14, 2009, 5:00am   #42
 
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Originally Posted by rnicoll View Post
So... use a platform that lets you put your entry and exit trades in as a bundle? When the entry trade executes, stop-loss and profit target are put into the market as one-cancels-another orders and you're done, no?
Use a server based platform and you won't need to worry about lockups. Use this in conjunction with OCO orders and your good to go.
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