how do scalpers survive bad ticks

[konviction]

Ive been watching spy on 233 tick charts, and even for something with this much volume, ive seen a few bad ticks for 12 to 20+ cents. As scalpers, do you place stops hoping this bad ticks dont get you out ?

 

[crgarcia]

Quote from konviction:

Ive been watching spy on 233 tick charts, and even for something with this much volume, ive seen a few bad ticks for 12 to 20+ cents. As scalpers, do you place stops hoping this bad ticks dont get you out ?

They don't

99.99% of scalpers blowup rather quickly.

 

[Steelers Baby]

Quote from konviction:

Ive been watching spy on 233 tick charts, and even for something with this much volume, ive seen a few bad ticks for 12 to 20+ cents. As scalpers, do you place stops hoping this bad ticks dont get you out ?

Any trading platform worth its salt has ways to filter against bad/out of market prints, so that they do not cause stop-outs. It has never even been an issue for me.

 

[SethArb]

trade small and manage your risk

and macro hedge yourself when you see the green shoots

good luck gentlemen


http://img.timeinc.net/time/daily/2009/0905/green_shoots_0521.jpg

 

[trader#21]

any good system does not forces out on a single bad print.

anyways most good scalpers i know do not rely on stop-loss orders as for slippage... prefer hitting out themselves.

**getting out lightning fast if its not moving in your favor is the first premise of scalping.

 

[Little Joey]

Quote from konviction:

Ive been watching spy on 233 tick charts, and even for something with this much volume, ive seen a few bad ticks for 12 to 20+ cents. As scalpers, do you place stops hoping this bad ticks dont get you out ?

My mommy told me just yesterdday not to rdie my bikecycle through the short cut in the woods coming from from skool. when i ask her "how come mommy?" She told me "Little Joey, there are deeer TICKS in those woods and if you get one you can get real sick with lime disasase.

I guess then ticks are no good anywhere

 

[NoDoji]

Quote from konviction:

Ive been watching spy on 233 tick charts, and even for something with this much volume, ive seen a few bad ticks for 12 to 20+ cents. As scalpers, do you place stops hoping this bad ticks dont get you out ?

I think what you're seeing on those spikes are latent prints, which should have no effect on stop or limit orders. They never affected any of my trades, though I encounter them all the time.

 

[trend2009]

you can filter out bad ticks by only accepting tick within the inside quote. any outside ticks could be considered outside executions.

 

[IronFist]

i was under the impression that those weren't actual prints and just software glitches.

Yahoo Finance shows stuff like that a lot for SPY. Sometimes it ruins the perspective of the charts. Like there will be one print that is 5 dollars higher than where price actually traded. I don't think anyone actually got a fill there.

 

[MohdSalleh]

if u are a true scalper, ur stops are mental stops never hard stops. hard stops take too much time