Scalping e-minis

I did a lot of backtesting on this several years ago and found that you could generate very high win ratio's by taking immediate profits and having a somewhat wider stop. The problem is you just don't make any real money and the occasional disaster loser kills you. I will concede that the advent of globex e-mini trading may have made it more possible to trade this way, although I'm still skeptical you can make enough to make it worth the risk. Although e-mini commish seems low at $4.80 a RT, that is still equal to $24 a RT for a full size car, which would be about double what most traders pay. So it definitely becomes a factor if you're settling for $50 wins.

Still, if you can knock off an extra point or two on size everyday, that adds up too. I tend to think PKJR is heading in the right direction in saying the key is to wait for the sure set-up and then do size. I am pretty sure that trading 47 times a day will not work out.
 
AAA - you nailed it..patience and once again patience.. and no random trades...and no trades based on 'feeling'..here is something interesting..if you can net 2 pts a day on 2 big SP (10 eminis) - you are already in $130k range for the year..
 
On the surface, scalping seems wild and crazy - but it is anything but.

If you have patients, and don't get greedy - i.e. go for small reasonable profits - it is safe and sound.

With the advent of auto-entry applications such as BracketTrader or AutoTrader it comes down to one mouse click! I have had trades as short as six seconds, with most lasting no more than one minute.

The true risk/reward is very reasonable. and the win/loss rate is astonishing. Play by the rules, and it is virtually a no lose situation.
 
Tampa,

Don't ever think that having money in the market is a "no-lose" situation.

It may be called a "lower-risk" situation, but a situation that guarantees a profit in any market is non-existant.

aphie
 
Are these Autotrader and Bracket trader apps reliable and where do you get them ? The number of trades some emini traders make is just astonishing how is that possible you need to be at 100% for 6 1/2 hours! Also to me it sounds impossible to get most of your trades going your way without ticking down a bit after entry anyway you would need your quotes to be right on to the second and probably a Globex terminal ( the internet?)for this approach to make sense . :confused:

How much do the profitable emini "scalpers" make per week ? I think most will define scalping as between 30 sec and 5 min. hold. And do you ever hold for a 5 point gain or more ?
 
as i see it by now, there is a critical discretionary element involved.

lets say you're looking for 1 point NQ on a reversal from down to up. you have 3 expanded 1min bars on high volume to the downside. then it stops. you must concentrate and try to buy what seem to be a low ask (and that ask might show only for several seconds)...thats the critical discretionary element IMO(perhaps it is also possible to hit it with a limit order ?)

if you hit it correct, the market should immediately move 1 or 2 ticks your way. so your are b/e or up 1 tick. now the market has to move just another 1 tick...and your limit order is triggered.

just a common observation :)
 
Originally posted by Kicking
Are these Autotrader and Bracket trader apps reliable and where do you get them ? The number of trades some emini traders make is just astonishing how is that possible you need to be at 100% for 6 1/2 hours! Also to me it sounds impossible to get most of your trades going your way without ticking down a bit after entry anyway you would need your quotes to be right on to the second and probably a Globex terminal ( the internet?)for this approach to make sense . :confused:

How much do the profitable emini "scalpers" make per week ? I think most will define scalping as between 30 sec and 5 min. hold. And do you ever hold for a 5 point gain or more ?
More...

Slow down there, guy!

I am a scalper - I make 2 to 4 trades a day. Scalping is nothing more than identifying a high probability situation, and going in for a small piece of the action.

If I hung around for 5 points, I would be a day trader, not a scalper. If I made 100+ trades I'd be a basket case!

A scalper makes his money with size, not volume. It requires discipline and knowledge of how a market usually acts. In my case, these are high probability trades, with a predetermined objective. You take what you can, when you can.

To find Bracket or Auto go to the IB Forum and look under API's for their threads.
 
I did this type of trading for over a year and still do it occasionally. Usually, when I scalp the ES or the NQ, I trade off the 1 min charts, taking 5-10 trades per market per day. I've been profitable, with an occasional down day, but not a down week yet.

To be successful, in addition to having a good method, one needs to pay close attention to the market minute by minute, of course, and be proficient at fast, accurate execution. Trouble is, after a few hours at this, I usually get a headache - it is not an easy thing. But the good thing about this type of trading is that, although there's tension while trading, deeper kinds of stress are way down: nothing to worry about when you are not in a trade, right? :)

A good, friendly place to learn more and meet other traders with similar interests is Woodie's room at PalTalk. Also, if you search this board, you'll find many references and discussions about methods, systems etc.
 
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