Scalp Strategy that works

C

Cazza La Randa

I found that this scalp strategy works fine

I scalp the ES 4/6 times per day (with 20 lots)

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Min. 2 lots

Stop/Profit Rules (Low medium price range):

Profit_1 = 1,75
Profit_2 = 3,75

Loss = 2,25

Price Change 2,0 (when the first target is met)

Stop Change 2,75



Winning trades +/- (75%)
Losing Trades +/- (25%)

as follows:

A*) % of trades with both targets met = 25%

B)* % of trades with one target met = 50%

C) % of losing trades 25%.


So I have:

A*) (1,75 + 3,75) x 2.5 (25%) =13.75 points profits

B*) (1,75 + 0,50) X 5 (50%) = 11.25 points profits

C*) (-2.25) X 2.5 = -5.625 points profits


Total profit per 10 trades with 2 lots:

(13.75 + 11,25) - 5.625 = 19.375

19.375 x $50 = 968.75

Commission = 4,5 x 20 = $ 90


Net gain 878.75



Comments? Just curious to see what is your strategy
 
I made 464 trades since early April

Of course you have to adapt the size of lots and/or stop, based on daily price range

Personally, I reduced the number of lots when the range was wild, raising stops and profit targets
 
Quote from FaceOff:

Shouldn't C be doubled (since you are being stopped out of 2 contracts)?
More...

Yes

My mistake

Min. 2 lots

Stop/Profit Rules (Low medium price range):

Profit_1 = 1,75
Profit_2 = 3,75

Loss = 2,25

Price Change 2,0 (when the first target is met)

Stop Change 2,75



Winning trades +/- (75%)
Losing Trades +/- (25%)

as follows:

A*) % of trades with both targets met = 25%

B)* % of trades with one target met = 50%

C) % of losing trades 25%.


So I have:

A*) (1,75 + 3,75) x 2.5 (25%) =13.75 points profits

B*) (1,75 + 0,50) X 5 (50%) = 11.25 points profits

C*) (-2.25*2) X 2.5 = -11.25 points loss


Total profit per 10 trades with 2 lots:

(13.75 + 11,25) - 11.25 = 13.75

13.75 x $50 = 687.5

Commission = 4,5 x 20 = $ 90


Net gain 597.5
 
Wouldn't you be better off just going for target 1? If so a one contract strategy with you results would look like this:
A. 1.75 * 7.5 (75%) = 13.125
B. -2.25 *2.5 (25%) = -5.625
13.125 -5.625 = 7.5 gain per contract

as opposed to 13.75 gain for a 2 contracts or 6.875 per contract.

I could be wrong here, check the numbers.
 
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