Scalping Vs. Runners

J

John9999

Here is an age old issue that I continue to consider.

As a Day Trader... do I scalp or do I go for runners?

I can argue both sides. Scalp is good because I am booking a profit. Runner good because the winning trades are bigger than the losing trades.

Personality wise... I do not wish to trade and trade all day long... so the runner strategy is good for my personality.

what are your thoughts?
 
John9999 said:
Here is an age old issue that I continue to consider.

As a Day Trader... do I scalp or do I go for runners?

I can argue both sides. Scalp is good because I am booking a profit. Runner good because the winning trades are bigger than the losing trades.

Personality wise... I do not wish to trade and trade all day long... so the runner strategy is good for my personality.

what are your thoughts?
More...

Try both. Pursue whichever works best for you.
 
You can do both. In this environement, provided your entries are good, you can lock in profits with a stop and see if your scalps can turn into a runner. :)
 
I don't understand the "pick one" mentality. But that's a different topic.

You already answered your question...
>> Personality wise... I do not wish to trade and trade all day long... so the runner strategy is good for my personality.

Your task is to differentiate the setups that are most appropriate for YOUR desired style and the associated outcome.
 
For me comes down to what is easiest as far as consistent profits and risk management/equity curve, most of my systems for intraday are scalping as I have most of my experience in doing so. Not until last year I been able to make a system I could stand that offered low losing percentages and larger profits in points instead of ticks. But, often times the runners get stopped out at breakeven plus one tick when I could have made 3 ticks, so there is always going to be compromises. So when volatility is above normal, I have equal of 1 scalp and 1 runner, when volatility is less, it is 4 lots for scalping and 1 runner ratio. But scalping is toughest of all aspects of trading imo, most challenging to learn. Have to maintain very low losing percentages.
 
A "runner" is an accident -- *not* something to be relied upon -- and if you aim at it as your primary trading target, you will be bitterly disappointed. And then, broke.

Tick-scalping requires a minimum ATR of 2-3 ticks (and 4-5 is better), such that you can get in and out, all day long, and mill money even if *your* evaluation of the market is wrong.

Longer trades -- specifically intended as 1hr to 24hr holds -- are going to vary according to the underlying being traded, and the macro market. But if you can develop a nice little cohort (new highs, or those above 6m, 3m, 1m, 1w, and 1day highs, for example), and choose the one with nice news, or S&P sector favorability, or (in 2018) something that got fair geopolitical news.... If you can develop such a cohort, you'd have a fair chance of finding a "runner" maybe half the time. ("So, flip a coin and place a close Stop?") Yessum.
 
It depends on the market cycle.

1) If it is ranging horizontal and range is big enough for scalps then I will scalp long and short.

2) If in a BO followed by a tight channel i will take position in direction of tight channel and let it run some.

3) If BO followed by a broad channel then I will scalp long and short.

4) If trending with small PB’s of say 1 to 5 bars even if trend is grinding slow I will take positions on PB’s and add to losing positions on PB’s (i.e. average down). If trend is up I will be taking long positions. If down I will be shorting. In both senarios I will not hestitate to average down. I like to let the position run and I may be in these trades longer than just a few minutes.
 
Just be happy you can survive and bank profit...
es

John9999 said:
Here is an age old issue that I continue to consider.

As a Day Trader... do I scalp or do I go for runners?

I can argue both sides. Scalp is good because I am booking a profit. Runner good because the winning trades are bigger than the losing trades.

Personality wise... I do not wish to trade and trade all day long... so the runner strategy is good for my personality.

what are your thoughts?
More...
 
tommcginnis said:
A "runner" is an accident -- *not* something to be relied upon -- and if you aim at it as your primary trading target, you will be bitterly disappointed. And then, broke.

Tick-scalping requires a minimum ATR of 2-3 ticks (and 4-5 is better), such that you can get in and out, all day long, and mill money even if *your* evaluation of the market is wrong.

Longer trades -- specifically intended as 1hr to 24hr holds -- are going to vary according to the underlying being traded, and the macro market. But if you can develop a nice little cohort (new highs, or those above 6m, 3m, 1m, 1w, and 1day highs, for example), and choose the one with nice news, or S&P sector favorability, or (in 2018) something that got fair geopolitical news.... If you can develop such a cohort, you'd have a fair chance of finding a "runner" maybe half the time. ("So, flip a coin and place a close Stop?") Yessum.
More...

I agree.
Last few days been incredible for runners, but normally a runner is like dropping a dart from three stories and aiming for sheet of paper, eventually it hits and make nice move, and able to read price using charts, Dome, Time and Sales can allow these "runners" get far enough, even if just one tick further, so as not to take a loss, keeping intraday drawdown at a minimum is essential for capital preservation. Taking 70-100 scalp/runner trades a day, 0-5 profitable runners, but really are flukes for me and if trend going for 20-60 minutes plus, adding onto other signals that also have runners. It fun to see something trend, but have to sit on my hands cause trades over a couple minutes is like a lifetime for a old scalper. I will stay in past 3 ticks if Dom/T&S shows might get extra tick or two, but usually never get more than 4 ticks cept this week. When I use to day trade stocks, just loved when overnight carry ES down 10-20 points so stocks gap down, and ES started going back up, I be buying stocks.

Like a gift at end of the day, 2 minutes left till New York closing, got tick short of morning high, you know they not going to stay long over the weekend, New York close, Bamm slam down.
 
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