How do human scalpers compete with machines today?

[xandman]

Yep still here, doing okay, not really seeing a HFT Issue.

Just run a limit just below the current price, price spikes down, gets you in, spikes up, exit!

In an upward market ofcourse.

Mostly long gamma for short bursts of time?

Always wondered if it was easier to get in a moderately wide bid/ask or just go with high liquidity for consistent stops at market if needed.

 

[wrbtrader]

Scalpers need to be mentally agile and fast to have an edge over fellow scalpers. However, how can human scalpers compete with machines today given that they simply cannot match the speed of machines? Besides, machines don't make careless human errors.

How should scalpers respond to the challenge?

Most retail scalpers are not automated. Thus, seems obvious that they should either get automated or stop scalping and begin using a different trading style.

 

[Turveyd]

Most retail scalpers are not automated. Thus, seems obvious that they should either get automated or stop scalping and begin using a different trading style.

The pressure does drive me nuts, i can and do make good % for a week or two, then i start trading badly have to stop take a week or 6 of them repeat.

Guessing with style is a tricky tricky game lol

 

[wartrace]

Take a look at John Grady on Youtube. He scalps the bonds. I haven't heard of anyone that scalps going for the spread as "scalping" used to be defined. Going for a quick 10 ticks on the 6e or 3 ticks on bonds is what most humans are doing. It is pretty much just order flow trading.

 

[Turveyd]

Take a look at John Grady on Youtube. He scalps the bonds. I haven't heard of anyone that scalps going for the spread as "scalping" used to be defined. Going for a quick 10 ticks on the 6e or 3 ticks on bonds is what most humans are doing. It is pretty much just order flow trading.

Depends on the market conditions to me, if there is a good upward bias then I hold longer, few hours, if market is just sideways then I take my profit on the next stall.

Trying to get as much profit as possible without risking giving too much back or going negative is a tricky art,

 

[wartrace]

Depends on the market conditions to me, if there is a good upward bias then I hold longer, few hours, if market is just sideways then I take my profit on the next stall.

Trying to get as much profit as possible without risking giving too much back or going negative is a tricky art,

There is an old saying that "every trade begins as a scalp" . Of course most guys will stay in if the tape and DOM tells them to.

 

[Turveyd]

There is an old saying that "every trade begins as a scalp" . Of course most guys will stay in if the tape and DOM tells them to.

If you can BE on the Scalp side, but let some run and therefore profit over all via them, well that's the plan

A few weeks ago, had 14profits in a row over a week or so, 23% account growth, charts look the same so not like anythings changed, just burnt out and back to BE trading.

 

[wartrace]

If you can BE on the Scalp side, but let some run and therefore profit over all via them, well that's the plan

A few weeks ago, had 14profits in a row over a week or so, 23% account growth, charts look the same so not like anythings changed, just burnt out and back to BE trading.

Why are you trading off charts? Do you use the tape? The depth of market? I only use two charts in my trading. A footprint to record where trades went off and a 70 tick chart for market structure. I am also using a volume profile on the tick chart. I make 100% of my trading decisions off the tape.

 

[Turveyd]

Why are you trading off charts? Do you use the tape? The depth of market? I only use two charts in my trading. A footprint to record where trades went off and a 70 tick chart for market structure. I am also using a volume profile on the tick chart. I make 100% of my trading decisions off the tape.

I have a range / direction based method, using well 1 Envelope based on 24sma pretty much, I just play this range with the 24's and 120sma's direction.

KISS!!

DOM I tried years ago, goes to fast for me to see anything useable from it.

 

[wartrace]

I have a range / direction based method, using well 1 Envelope based on 24sma pretty much, I just play this range with the 24's and 120sma's direction.

KISS!!

DOM I tried years ago, goes to fast for me to see anything useable from it.

I am not too familiar with equity trading so maybe it doesn't work for that type of product but it works for futures. The problem is most people won't put in the time required to learn it. I spent the better part of a year just watching the tape and the DOM in replay. I have been trading live for the past few months and it has "clicked" for me.