Scalp on 1 Minute?

[evostik]

Hi

Several years ago, (along with another member of this board) I used to trade a simple method that only used AAPL and RIMM. Basically (for Longs), if INDU turned up from OS and the stock was also OS then I would enter. Obviously there were Money Management and other criteria wrapped around this but that was the basic entry trigger. It was, in fact, based around Grey1's methods.

The system had a reasonable positive Expectancy while it lasted but then AAPL got too big (spread widened too much) and RIMM imploded. Anyhow, I was wondering if anyone trades successfully along these lines now and, if so, which stocks do you find suitable.

Cheers
Steve

 

[amit1986]

Scalping is still possible, but not scalping only for the sake of scalping. Some of my trades may last for a few seconds and I might be able to get a few cents per share, but upon entering, I am mostly not setting targets. I only get out when momentum dies and if it dies quickly, then the trade effectively becomes a scalp.

RIMM is still scalp-able on days when it is not restricted and trending. But my point is that pure scalping has become difficult in this type of market, if not impossible. Most scalpers use order flow, so perhaps reading order flow to get in/out when it stops going your way is the best way to go. Sometimes you'll get modest scalps, but other times you will get some handsome gains.

A lot of stocks that used to be great for scalping (ASML, ZUMZ, etc...) for me one or two years ago are now too difficult to scalp - too erratic with wide spreads. I have adapted, though. I've noticed lately my trades, on average, are lasting longer. So, in a way, scalping has naturally faded from my tools, but occasionally, I do find myself being in trades for a few seconds only.

 

[Trader333]

Steve,

I remember another approach was to rank the OS and OB stocks relative to INDU and then either go long or short the highest or lowest ranking stocks at the point where INDU became OS or OB based on the prevailing trend of the day. This worked very well and was why we were all using Radarscreen at the time.



Paul

 

[evostik]

Scalping is still possible, but not scalping only for the sake of scalping. Some of my trades may last for a few seconds and I might be able to get a few cents per share, but upon entering, I am mostly not setting targets. I only get out when momentum dies and if it dies quickly, then the trade effectively becomes a scalp.

RIMM is still scalp-able on days when it is not restricted and trending. But my point is that pure scalping has become difficult in this type of market, if not impossible. Most scalpers use order flow, so perhaps reading order flow to get in/out when it stops going your way is the best way to go. Sometimes you'll get modest scalps, but other times you will get some handsome gains.

A lot of stocks that used to be great for scalping (ASML, ZUMZ, etc...) for me one or two years ago are now too difficult to scalp - too erratic with wide spreads. I have adapted, though. I've noticed lately my trades, on average, are lasting longer. So, in a way, scalping has naturally faded from my tools, but occasionally, I do find myself being in trades for a few seconds only.

Thanks for the reply Amit. It's the current volatility that makes me uneasy holding overnight, hence looking at scalping again. I am pretty much exclusively trading the methodology outlined in Mr Chart's thread at the moment because, as I said, the methodology I was comfortable with a couple of years ago just doesn't work now.

Cheers
Steve

 

[evostik]

Steve,

I remember another approach was to rank the OS and OB stocks relative to INDU and then either go long or short the highest or lowest ranking stocks at the point where INDU became OS or OB based on the prevailing trend of the day. This worked very well and was why we were all using Radarscreen at the time.



Paul

Hi Paul.

Sure, I remember that well. In fact I stumbled over my notes covering that the other day. I also found your recording of one of the Pal Talk sessions we did.

I don't use TS2Ki anymore (or Tradestation as a broker) so I don't have Radarscreen (well, I have the software somewhere). I guess I could create something similar with my set up (IB and Ninjatrader) but I never really gone tuned into the methodology properly. Did you? I wonder if anyone here is trading that way now?

Anyway, nice to hear from you. I hope you are well.

Cheers
Steve

 

[GlenGary]

As a scalper myself, Im in trades, " Hopefully " for 5-10 seconds. If I dont close my trade with-in 30 seconds, I made a bad call.

Just my opinion, Im scalping for 1-3 pips, stick and move, or jump on big candles, which is why I use Tick charts, and 10 second charts. I trade Oanda, so I use the 10 second chart for my entry, as I see EVERY pip valuable as the next. I NEED to get on the start of the drop or rise, right from the start.. Precision, ( Spelling horrid, but might be right,lol ).. As soon as that ticker starts the move, I want in the trade.

So, I entry on Ticker/MT4, and 10 second chart, 10 minute Inside bar, 5 minute inside bar, then go from there.

The Inside bar, is, well, the secret, Shhhhhhhhhhh, dont tell no one..

Great Profits to ya,

 

[markyb0y]

Hi GlenGary,

Your post caught my attention because of your style.

Particularly your duration of trade of 5-10 seconds. I like the sound of your trading method!

I too prefer a short quick fire style of trading. I know almost immediately if I got it wrong and drop it like a hot potato!

I have been using spread betting companies but they dont like this style.

As far as I can tell if you do more than a few trades this style needs a very low cost per trade.

I'm currently looking for another provider. Can I ask what broker you use / What are your costs per trade?? What markets do you trade??

Cheers

Mark