Scalping the FTSE

This is a discussion on Scalping the FTSE within the First Steps forums, part of the Reception category; Hi guys, first post here. Basically, I've been getting rather interested in scalping the FTSE 100. (At least I believe ...

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Old May 18, 2010, 1:59pm   #1
 
7 Posts
Joined May 2010
Scalping the FTSE

Hi guys, first post here.

Basically, I've been getting rather interested in scalping the FTSE 100. (At least I believe that's what it's called) I've got a spreadbetting account with IG and iii.co.uk and doing some 50p trades on the latter. I've lost one bet where I forgot I was using my new mouse and that the buttons are bigger and accidently closed a loser . Apart from that, I haven't had a single loser, and the same with paper trading. Now I don't seriously believe for a minute that'll remain the case for much longer, just been very lucky, but I find it rather boring.

Which brings me onto plan B. Create a bot that does it automatically according to my rules. Only problem is, interfacing with the SB company. IG index isn't too tricky, it's the flash based ones that'd need a screenscraper etc.

Has anyone overcome this before, or does anyone have a recommendation of a broker that has an API I can use and tight spreads etc.
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Old May 18, 2010, 2:41pm   #2
Joined Dec 2007
Re: Scalping the FTSE

Hi Nick,

I know absolutely nothing about creating a bot so I can't help you there.

But one thing I can help with is scalping and spreadbetting. They simply don't mix.

If you want to scalp in the truest sense, you should trade direct market.

I honestly don't think there will be one person on the forum who either makes money scalping using a spreadbetting account, or disagrees when I say you'd be better off trading Direct Market Access.

Hope this helps,

Good luck.
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Old May 18, 2010, 2:56pm   #3
 
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Joined May 2010
Re: Scalping the FTSE

nick_uk started this thread Thank you for responding

I don't need help in creating the bot as such, my problem is more this:

I've been reading about DMA, and agree it's the best way to go due to tighter spreads, probably better fulfillment etc, but then thought what do you actually buy and sell for the FTSE 100? Is there a broker you'd recommend for this?
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Old May 18, 2010, 3:24pm   #4
Joined Oct 2006
Re: Scalping the FTSE

You buy and sell a futures contract, sounds more complicated than it really is. If you think it will go up you buy a contract, if you think its going down you sell a contract. You will probably need about $500 to trade one contract with a proper broker. Look at the Global Futures website, they have a live chat feature and you can ask them about commissions etc. Remember you wont be paying them a spread and they wont mess about with slippage like a SB provider will. Paulie is right, forget about scalping and spreadbetting, in my opinion forget about spreadbetting at all, waste of time.
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Old May 18, 2010, 3:25pm   #5
Joined Oct 2006
Re: Scalping the FTSE

Ask Global for a demo account of their GSTrainer platform, that has free charting with live data, you can get the FTSE on it. They have something called Strategy Runner which is designed for automated trading, dont know much more about it as I trade manually.
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Old May 18, 2010, 3:41pm   #6
Joined Dec 2007
Re: Scalping the FTSE

From your first post (you mention only one loss so far), I'd recommend that rather than thinking about jumping straight in and finding a DMA broker, you keep watching the markets, learning, reading books, reading forums. Demo, backtest. Demo again.

It's a looooong long process to become successful as a trader.

And sorry to say this, but if you find the process boring already (and therefore looking for excitement) you are unlikely to succeed.

Good luck
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Old May 18, 2010, 3:52pm   #7
 
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Joined May 2010
Re: Scalping the FTSE

nick_uk started this thread I'm a programmer at heart, I like to analyse things, program etc. I've been watching the markets for a couple of years, doing the paper trading on and off, and want to make software, bots etc and do it that way, as it's what I enjoy.
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Old May 18, 2010, 4:04pm   #8
Joined Oct 2006
Re: Scalping the FTSE

Quote:
Originally Posted by nick_uk View Post
I'm a programmer at heart, I like to analyse things, program etc. I've been watching the markets for a couple of years, doing the paper trading on and off, and want to make software, bots etc and do it that way, as it's what I enjoy.
You might want to look at tradestation, its a bit expensive but you can program pretty much anything and run backtests. I think Strategy Runner will be more limited but you can get a free demo, if programming is what interests you then you can write a trading system in SR and publish it, people might even pay you to trade it if its profitable.
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