scalping ES

osho67

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Today for the first time I tried scalping ES on paper trading., I am using Tsim. My profit target was 0.25 and loss target at 0.50. I am using IB.
I made 84 wins and only one loss. Tha commission was 408 . I made gross profit of 1050.This was so easy. The trades were filled in one or two seconds and trade completed in another one or two seconds.
I was also doing buy at bid and sell at ask.

What am I missing? Making profit was so easy. Will the fast execution continue on real time basis. one trade only at a time.

Has anybody tried scalping like this. Commission is very high but so what if you end up making profit. I just have one minute bar chart- no technical indicators and I do the trade looking at the last bar.

Comments very much appreciated . Thanks
 
only disadvantage of sim trading is how realistic is the fill. X_trader simulator counts the bid/ask size and order flow and gives a semi-realistic estimation of when you might get a fill, but its still a bit optimistic.

If your simulator was only taking 1-2 seconds for a fill i'd say thats mega unrealistic. I've traded ES and waited minutes at a time for a limit on the bid/ask to fill - ES is pretty deep and sometimes there are upto 5000 contracts on the bid/ask... you join the queu behind that lot and see how long it takes to fill!
 
In SImulation mode on Tsim , when your price is hit the order will be filled , in reality there may be another 1,000 odd orders in front of you
 
The few times I've traded ES via IB and another interface, I've been filled very very quickly - 1 or 2 seconds I would say. If you're trading with small size this shouldn't present a problem.

EDIT : of course, this is using market orders - limits may take longer, as Arb says.
 
Arbitrageur said:
only disadvantage of sim trading is how realistic is the fill. X_trader simulator counts the bid/ask size and order flow and gives a semi-realistic estimation of when you might get a fill, but its still a bit optimistic.

If your simulator was only taking 1-2 seconds for a fill i'd say thats mega unrealistic. I've traded ES and waited minutes at a time for a limit on the bid/ask to fill - ES is pretty deep and sometimes there are upto 5000 contracts on the bid/ask... you join the queu behind that lot and see how long it takes to fill!


yep.

also think of the time for reporting a fill.

unless you have a direct connection to the exchange, fill confirmation could take 1-2 secs which could make a huge difference if on a regular broadband connection.

most pro scalpers will be looking at at least 30-50% scratches (getting out where you got in), so you still get hit on costs. costs MUST be low low low for scalping anything.
 
osho67 said:
Today for the first time I tried scalping ES on paper trading., I am using Tsim. My profit target was 0.25 and loss target at 0.50. I am using IB.
I made 84 wins and only one loss. Tha commission was 408 . I made gross profit of 1050.This was so easy. The trades were filled in one or two seconds and trade completed in another one or two seconds.
I was also doing buy at bid and sell at ask.

What am I missing? Making profit was so easy. Will the fast execution continue on real time basis. one trade only at a time.

Has anybody tried scalping like this. Commission is very high but so what if you end up making profit. I just have one minute bar chart- no technical indicators and I do the trade looking at the last bar.

Comments very much appreciated . Thanks



this is what they want you to think. you start trading like this and ib earn loads of money is commissions
 
As pointed out above by others you are fooling yourself by buying the bid and selling the ask in a simulator. In real life your chance of getting a fill is minimal unless the price trades trough your bid / ask and then you are no longer buying at bid or selling at ask.

YM is much thinner but it is also a totally different game for scalping because of smaller tick size etc.

Bungle
 
Hi

I think the problem with the simulator is that it uses Last Price (this is on IB). Is there a simulator that closes a trade on Bid or Ask only
 
I use Ninja Trader platform. Has most realistic fills for simulation.... I believe IB offers it ...cost $50.00 per month.......I would echo Dr. Bundle's sentiments about buying the bid and selling the ask...must trade through price 90% of time to get filled.
 
try buying the ask and selling the bid in your simulations ( ie hit and lift) as this is a worst case scenario (almost) and a definite fill, look for 1 - 2 ticks profit es or 3-6 ym. if you make profit consistently on a # of trades per day this way, your laughing!

happy trading
 
osho67 said:
What am I missing?

In answer to your question, you are missing reality.
Slap some money on your trades and welcome to the club.
The nature of your questions will change.
Be careful with a stop that is twice as deep as your profit.
What % accuracy do you think that you will need to bring you into profit after slippage and fees on this basis?
 
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