scalping the e-mini

eagerbeaver · Oct 6, 2005

Anyone have experience consistently scalping for one-to-two points on the es with anything more than, say, five contracts? Is it possible to do this with larger size, say 100 contracts, during regular market hours. Or does slippage become a significant factor?

If you can do it with 100 contracts, what are the practical size limits for such scalpers in "normal" market conditions during regular market hours? 500 contracts? 1000?

And, in case anyone's wondering, no I have no plans in this direction.

It's pure idle curiosity...

MacroEvent · Oct 8, 2005

the only place i have EVER seen someone that could teach you how to SUCCESSFULLY scalp the es on a daily basis is in the hotcomm room for the Institute of Auction Market Theory. Have you ever been in a hotcomm room where the trader ACTUALLY puts up his trade platform DOM for all to see {P&L included} --- that seals the deal as "put up or shut up" trading education for the newer trader.

i spend time in this room most days as i love some of the commentary by Billy who runs the room. Billy also teaches some excellent fundamentals into how the futures market is REALLY traded and he uses top notch entry/trade management --- some of the best i have ever seen before. he is one of the few pit traders that i have seen that makes very successful electronic es trades ---- that is very rare!

if you actually take the time to truly learn his methods and theory you would have to be retarded to not make money scalping on a daily basis --- his methods are excellent!

here is a link to his site ---------

http://www.instituteofauctionmarkettheory.com/index.cfm

here are some of the volume analysis tools he uses through his close alliance with TradeMaven --------

http://www.trademavenllc.com/tm_pages/professional.html

nitro · Oct 8, 2005

Quote from eagerbeaver:

Anyone have experience consistently scalping for one-to-two points on the es with anything more than, say, five contracts? Is it possible to do this with larger size, say 100 contracts, during regular market hours. Or does slippage become a significant factor?

If you can do it with 100 contracts, what are the practical size limits for such scalpers in "normal" market conditions during regular market hours? 500 contracts? 1000?

And, in case anyone's wondering, no I have no plans in this direction. It's pure idle curiosity...

The maximum number of contracts you can do at one time on ES and NQ is 5000.

Is it possible to scalp the SIFs on 500 contracts for 1 or 2 handles consistantly? I think so, but it requires the instinct of a prophet, the discipline of a marine and the courage of a lion - and then you have to be well capitilized.

The thing I have noticed is though, that whenever it is right to try and get 1 or 2, it is often wrong to just take the 1 or 2 because it is worth double that. In other words, even though 1 or 2 handle swings occur four times as many times as 4 handle swings, the expectations are such that 96% of the 1-2 handle swings are noise and "impossible" to trade unless you are a MM (imo), and maybe 75% of the 4 handle swings are possible to trade, 50% of which turn out to be noise-2-handle-moves (and have to be recognized as such,) leaving 25% of which turn into real-4-handle-moves.

nitro

MacroEvent · Oct 8, 2005

Quote from eagerbeaver:

Anyone have experience consistently scalping for one-to-two points on the es with anything more than, say, five contracts? Is it possible to do this with larger size, say 100 contracts, during regular market hours. Or does slippage become a significant factor?

If you can do it with 100 contracts, what are the practical size limits for such scalpers in "normal" market conditions during regular market hours? 500 contracts? 1000?

And, in case anyone's wondering, no I have no plans in this direction. It's pure idle curiosity...

with the es you can easily scalp using position size of 100 to 1000 during the highly active volume periods but during the slow times {like 11:30 to about 1:30 EST} i would say that 100 to 300 would be max. there is not any restrictions from a liquidity standpoint for trading the es with the position size i have mentioned --- the only restrictions possible would be in a traders strategy. the es can handle big position size trades and that is what makes it best imo for trading bigger position trades {not scalping}. now i do now people that trade the es with very large size in scalping methods {2 to 3 ticks per trade} with the size levels i have mentioned, but these are very experienced traders with a long track record and sound trading methods --------- so do not go out monday and put a 1000 lot on to see how you get filled.

easyrider · Oct 8, 2005

Can you make money with 1 contract? If you are consistently profitable just start adding contracts until the market tells you there is a problem.

El OchoCinco · Oct 8, 2005

I started scalping with the E-mini ES last month just 1 contract at a time until I got my "system" down and then moved to 5 contracts and now I am doing 10 contracts per trade. I basically look for 1 point a day based on some indicators and when I get it I pretty much back off unless I see another perfect set-up.

1 point a day with 10 contracts is $500 on $40,000 margin. SO basically everyday I am just turning that same $40,000 margin over and over. I am still fine-tuning my exits and entries but that is the easiest part. It is the daily discipline that I am trying to hone so I can consistently do this.

So I believe it can be done consistently but it aint easy. My goal is just 1 point a day/$500 a day. I have about 3 indicators I use, including the TICK and 1 and 5 minute charts so it requires you to glue your eyes to the screen!

Phil

wilburbear · Oct 8, 2005

Quote from optioncoach:

I started scalping with the E-mini ES last month just 1 contract at a time until I got my "system" down and then moved to 5 contracts and now I am doing 10 contracts per trade. I basically look for 1 point a day based on some indicators and when I get it I pretty much back off unless I see another perfect set-up.

1 point a day with 10 contracts is $500 on $40,000 margin. SO basically everyday I am just turning that same $40,000 margin over and over. I am still fine-tuning my exits and entries but that is the easiest part. It is the daily discipline that I am trying to hone so I can consistently do this.

So I believe it can be done consistently but it aint easy. My goal is just 1 point a day/$500 a day. I have about 3 indicators I use, including the TICK and 1 and 5 minute charts so it requires you to glue your eyes to the screen!

I think the e-mini leads the big S&P contract, and the big S&P contract leads the market. Here's a question for the e-mini traders - what leads the e-mini? Are bonds any good in this regard?

Thanks.

Phil

wilburbear · Oct 8, 2005

Quote from optioncoach:

I started scalping with the E-mini ES last month just 1 contract at a time until I got my "system" down and then moved to 5 contracts and now I am doing 10 contracts per trade. I basically look for 1 point a day based on some indicators and when I get it I pretty much back off unless I see another perfect set-up.

1 point a day with 10 contracts is $500 on $40,000 margin. SO basically everyday I am just turning that same $40,000 margin over and over. I am still fine-tuning my exits and entries but that is the easiest part. It is the daily discipline that I am trying to hone so I can consistently do this.

So I believe it can be done consistently but it aint easy. My goal is just 1 point a day/$500 a day. I have about 3 indicators I use, including the TICK and 1 and 5 minute charts so it requires you to glue your eyes to the screen!

Phil

I screwed up the last post by putting my reply with the original, in bold type. Here it is again. For the e-mini traders - what leads the e-mini? Are bonds any good in this regard?

MacroEvent · Oct 8, 2005

Quote from easyrider:

Can you make money with 1 contract? If you are consistently profitable just start adding contracts until the market tells you there is a problem.

yes this is a true statement imo!

Pabst · Oct 8, 2005

Quote from wilburbear:

Are bonds any good in this regard?

Sometimes.....

Not often enough to have predictive value as an "indicator" though.