intra-spread scalping?

O

oddtyme

Howdy all,

I'm new to real time trading, green as broccoli, but have been spending a lot of time on simulators and forums trying to learn how it all works.

I have a scalping strategy that works very well on the simulators - but simulation isn't real life. Can anyone with some real experience tell me if the following is feasible?

I depend on being able to go long at, or slightly above (say .001 or .002) the Bid, and sell the same margin below the Ask, on a high volume stock under $2. Trade volumes are 2500 to 5000.

My routes are limited to ISLD and NTRD due to low fees.

Please tell me if those executions are feasible at that volume?:confused:

Thanks!!
OT
 
I don't think I was being clear. Example, buy at Bid+.001, sell at Ask -.001, for a profit of .008 times 5000 = 40. Depending on commission and routes, I've been able to make it look profitable on the Sims, but like I said, I don't know if I'll get fills.

Again thanks for your help.
OT
 
It is likely that you will only get the fills you don't want in this scenario. In other words, as the market drops you will get filled on your bid, and be left long as the price drops. When the market rises, you will get filled on your ask, and be left short as the price heads north.

The best way to find out is try it with a hundred shares with a cheap per/share broker. It won't cost you much to see how everything really works. If you have luck, keep increasing your size until you run into liquidity problems. I think you will see what I mean.
 
OK, thanks for the feedback. I thought it seemed a bit too easy. Is there such a thing as a /share broker with no base comission? Might be worth playing with in that scenario.

OT
 
Quote from oddtyme:

OK, thanks for the feedback. I thought it seemed a bit too easy. Is there such a thing as a /share broker with no base comission? Might be worth playing with in that scenario.

OT
More...

Check out Interactive Brokers. I am a happy customer.
 
IB is great , but not for doing 5000 share blocks

and trying to be liquidity trader on penny stocks

some prop firms might still provide this option

good luck
 
Quote from SethArb:

IB is great , but not for doing 5000 share blocks

and trying to be liquidity trader on penny stocks

some prop firms might still provide this option

good luck
More...

I think he was asking about a broker that would be affordable to try out his ideas with 100sh lots before going big.
 
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