1 tick scalping strategies

This is a discussion on 1 tick scalping strategies within the First Steps forums, part of the Reception category; Originally Posted by Aspire Why? Are you being serious?...

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Old Aug 26, 2008, 9:30pm   #25
 
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Originally Posted by Aspire View Post
Why?

Are you being serious?
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Old Aug 26, 2008, 9:44pm   #26
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Yeah, totaly. Surely the point of scalping is to take consistent high probability small winners. why does it matter if the market is thin or not . A tick is a tick whenever and is worth just as much.

Am not trying to be confrontational but am interested to know why you believe I would be missing the whole idea of scalping if trading when the market is thin.
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Old Aug 26, 2008, 10:00pm   #27
 
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Yeah, totaly. Surely the point of scalping is to take consistent high probability small winners. why does it matter if the market is thin or not . A tick is a tick whenever and is worth just as much.

Am not trying to be confrontational but am interested to know why you believe I would be missing the whole idea of scalping if trading when the market is thin.
OK.

Yes, you are absolutely correct, "the point of scalping is to take consistent high probability small winners". That is exactly the point, Ultra-low risk, Ultra-High probability trades. In order to do this you must be proficient at the task because the goal is to consistently achieve a better than 75% win rate with a tight stop. There are not many Ultra-low risk, Ultra-High probability trades in the average day and if anyone claims that there are then they are not doing it right.

When you are scalping for fractions of points you can't afford to have a bad fill and the time you are most likely to get a bad fill is in a thin market. What does it matter if you are only trading 1 lot you might ask? Well it might not matter much at that level. But the idea of scalping is to increase your profits by scaling up your trading unit as you become more confident and proficient at picking the Ultra-low risk, Ultra-High probability trades. When you start trading 100, 250, 500 lots, liquidity will be an issue in a thin market.
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Old Aug 27, 2008, 12:25am   #28
 
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Scalping: the act of losing it all in just one bad trade that looked like a routine one when opened. But suddenly, the following news flashed at the bottom of the computer screen:

"Carrier lost"

this is for those that have been around for a while and know what I am talking about. The rest will know some day...

Ron
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Old Aug 27, 2008, 3:30pm   #29
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Scalping: the act of losing it all in just one bad trade that looked like a routine one when opened. But suddenly, the following news flashed at the bottom of the computer screen:

"Carrier lost"

this is for those that have been around for a while and know what I am talking about. The rest will know some day...

Ron

Only if your method of scalping is taking small winners with big stops or you lack discipline.

And what does losing carriers have to do with anything?
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Old Aug 27, 2008, 3:37pm   #30
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Originally Posted by ronblack View Post
Scalping: the act of losing it all in just one bad trade that looked like a routine one when opened. But suddenly, the following news flashed at the bottom of the computer screen:

"Carrier lost"

this is for those that have been around for a while and know what I am talking about. The rest will know some day...

Ron
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?
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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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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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