Scalping NQ

[Swan Noir]

Is scalping NQ for six, seven or eight ticks a reasonable thing to do or does the high ratio between tick size and commission (I pay $4.50 RT) make it problematic.

I am still relatively new and trade a single NQ contract at a time looking for three points or a bit more on a five minute chart. I like the $5 tick as it keeps my risk low at this early stage.

BTW ... I am not too interested in opinions as to whether this is a tough time to scalp or being told I should go long and spend the day golfing. I really just want to know if in "ordinary" times NQ is a scalpable contract.

Thanks ...

 

[MrPowerBallad]

The question to ask yourself if you want to scalp the NQ for 8 ticks is where do you place your stop? It better not be more than 8 ticks, or else you'll probably lose money over time. IMO, an 8 tick stop on the NQ is too difficult, and you should really be looking at profits and stops in the 15-20 tick range if you insist on taking profits quick, especially if you are new to the contract.

 

[Swan Noir]

It appears that there are some scalpers that risk 8 ticks to make 4 or 5 and win on 70%+ of their trades.

I take it you are skeptical that it can be done consistently?

Quote from MrPowerBallad:

It better not be more than 8 ticks, or else you'll probably lose money over time.

 

[Billy Thunder]

Quote from Swan Noir:

It appears that there are some scalpers that risk 8 ticks to make 4 or 5 and win on 70%+ of their trades.

I take it you are skeptical that it can be done consistently?

Scalping with a 8 tick stop, your comm rate and 5 tick profit and a 70% win rate, you end up with $100 profit per contract with 100 round turn trades. With taking 4 ticks profit, you end up with $250 lose per contract. It can be done consistently, I've done it with CL for the past year, with a 5 tick stop and taking profit at 5 ticks, with a win rate of over 70%.

 

[Kovacs]

In my experience, NQ breakouts on long timeframes (30 min or higher) combined with S&R analysis is easier than scalping.

It's a more orderly instrument. My view is scalping NQ would leave a lot of money on the table with disproportionate risk.

 

[Swan Noir]

I assume you mean more orderly than ES?
What size stop would you typically use on 30 minute breakouts?

Quote from Kovacs:

It's a more orderly instrument.

[/B]

 

[trading_time]

NQ is my main trading vehicle at this time. My standard preset stop is 8 ticks, and standard preset target 8 ticks. My commissions are $4.60RT This setup can be profitable, but it all depends on your entry. I often move targets up to 12 or 16 ticks when I feel it will go better then my 8 target - trail stops to protect.

I went long this morning right after the dip at open @ 1760. All other markets failed to dip (DAX, ES, YM, (ER) was actually trading up) signifying strength and a false dip in NQ.

TT

 

[deaddog]

Quote from Swan Noir:

It appears that there are some scalpers that risk 8 ticks to make 4 or 5 and win on 70%+ of their trades.

I take it you are skeptical that it can be done consistently?

If a trader trades 1 contract and has a 70% win ratio he will gain about $2 per trade and pay $4.50 for commisssion.

You have to trade 50 contracts to make $100 and your broker makes $225

 

[ES.Dreamer]

Quote from MrPowerBallad:

The question to ask yourself if you want to scalp the NQ for 8 ticks is where do you place your stop? It better not be more than 8 ticks, or else you'll probably lose money over time.

Time over time I have to listen to this.

Who says we must risk less than our reward to be consistently profitable ?

Only thing that matters is expectancy.

ESD

 

[Swan Noir]

Quote from deaddog:

If a trader trades 1 contract and has a 70% win ratio he will gain about $2 per trade and pay $4.50 for commisssion.

You have to trade 50 contracts to make $100 and your broker makes $225

First of all I did not refer to a 70% win rate ... I said "70%+ of their trades". Note the plus. That type of trader will frequently move his stop up 3 or 4 ticks if he is one tick short of his goal and the market just hamgs there.

And lastly my original question was 6,7 or 8 ticks. I was never intending to try it for less.