Scalping_My Way with ACV

Hi Bill,

Thanks very much for your detailed reply. Pretty much how I was doing things. Every now and then though I get into trouble. What happens is the trade dosent go my way (OK no problem there). Rather than just cut it I try and 'finess' the exit by waiting for price to come back a little this usually means you can scratch or maybe take a 1 or 2 tick loss.

Of course every now and then things rip and I end up taking a large part of those 10 ticks as a loss. Despite being able to hit a pretty high winning average these tend to come 2 or 3 at a time (suggesting there is an emotional/dicipline problem).

Anyway if you have the time I'd be really greatful if you could explain a little about trades that don't go in your direction.

Do you just bail or go for price improvement to scratch for a smaller loss? What tips you off? What about if you are strabucks trading on ACV alone?

Anyway thanks again for the thread it introduced a way of looking at the DOM that had never occured to me before.

Cheers,
Nick.
 
Blowfish - the best way to combat the problem you mention is to have a more specific plan. When price is against you say 5 ticks....what is the EXACT plan? When price is against you say 7 ticks....what is the EXACT plan? When price is against you say 11 ticks and you didn't have a specific enough plan at 5 ticks.....why are you still in the trade?

Get what I mean......refine this process in your trading and you can trade with comfort because you have a SPECIFIC plan for any scenario (one that is fully written down and followed with no questions asked).......do this and you will no longer have fear of the "unknown", as there will never again be an "unknown". The utmost in discipline is a major factor in extended profitable outcomes.
 
Quote from BlowFish:

Hi Bill,

Thanks very much for your detailed reply. Pretty much how I was doing things. Every now and then though I get into trouble. What happens is the trade dosent go my way (OK no problem there). Rather than just cut it I try and 'finess' the exit by waiting for price to come back a little this usually means you can scratch or maybe take a 1 or 2 tick loss.

Of course every now and then things rip and I end up taking a large part of those 10 ticks as a loss. Despite being able to hit a pretty high winning average these tend to come 2 or 3 at a time (suggesting there is an emotional/dicipline problem).

Anyway if you have the time I'd be really greatful if you could explain a little about trades that don't go in your direction.

Do you just bail or go for price improvement to scratch for a smaller loss? What tips you off? What about if you are strabucks trading on ACV alone?

Anyway thanks again for the thread it introduced a way of looking at the DOM that had never occured to me before.

Cheers,
Nick.
More...

Nick,

Here is a quick visual explanation....don’t have much time....market getting ready to open. In the case of trading the ACV....while at Starbucks....well....I would just go order another Frap....with a couple of shots....then pray. Really....I watch Price very carefully....if it starts killing me....I just hit close....take my loss. Usually....most days....I also have some short Trend trades....sometimes long Trend trades....to go with my 1 or 2 ticks trades....so that helps ease the pain.

Gotta go....market opening in a few minutes.

Bill
(in beautiful Seattle)
VSTscalper
 

Attachments

VST - Do you at all plot your own MP levels for the ER2 prior to each trade day to help pick the most optimal locations to scalp from?

I see one exceptional set-up from your chart example if MP was involved as a consideration.
 
Thanks to both of you,

Using previous swing highs/lows makes sense....except of course everyone knows thats exactly where all (well a huge majority) of the stops are :-) I guess one can always add a few ticks.

5 I take on board exactly what you say. I pretty well know when a trade has gone against me but it isn't a simple matter of a fixed 5 7 or 10 ticks. Its not even when the previous swing you entered against is tested.....though that sure as hell is a red flag. Often those levels are tested and very quickly rejected. (with a scalp it can be all over in a blink and before you know it you are points in profit) Its when that swing is tested and price is not rejected that ist time to get out.

Supporting your suggestion, the times I get really caned is when there is a high momentum thrust through the level and unless you have a fixed stop you have little chance of exiting gracefully. Even with a resting stop you can get maybe half a dozen ticks slippage on the DAX. These sort of moves nearly always correct....however when they dont .....

Im really not sure what is the 'best' way to deal with things. Of course there is no 'best' way. Its just the ego wanting to be right perhap. I do feel a certain degree of discretion (rather than a stop actually resting in the market) will produce the best results.

Of course one still needs rules, I wonder if something like "exit on a bar that closes in violation of my stop level) Will give more structure to my trades (which If I am honest I need) whilst still protecting a bit against those stopped out by 1 tick trades which I think are probably everyones least favourite. (i.e. the whole trade premise was correct but you just get jiggled out).

Maybe this should go somehwere else as its not really to do with ACV. It is I think one of the most critical aspects of trading and despite doing 'OK' I dont think I have it just right yet.

Cheers and thanks again,
Nick.
 
Quote from MajorUrsa:

..
Again, this is counterintuitive to me: how would you stop a downtrend by adding orders to the offerside?..

Thanks for any help,

Ursa..
More...

interesting enough, it conforms to Newton's third law

"more massive objects will attract each other with a greater gravitational force. So as the mass of either object increases, the force of gravitational attraction between them also increases. If the mass of one of the objects is doubled, then the force of gravity between them is doubled"
 
To all,

This is my charts set-up. I used to have T&S on the chart also....but have taken that off as well. For me....less to look at is better. I have enough information with the chart and the ACV.

I reached my net daily goal....about 7:42 a.m. Pacific Time....so I stopped trading. That is a Rule that I follow....which helps me maintain my Discipline. Without my Rules_Discipline....I would have been out of trading many years ago.
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Information about charts.............

610 tick chart to the Left....for Trending
20 tick chart to the Right....for Scalping

Horizontal Lines on TripleWave:

Wild Extreme OB_OB....top and bottom = Dark Cyan
Extreme OB_OS....middle = Red and Green
OB_OS....nearest the zeroline = Dark Magenta
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On the 20 tick chart....you can see the numbers 1 thru 5....which shows 5 easy 2 tick Scalps.....but I was done trading. Just wanted to show some signals. I trade OB_OS a lot....one of my favorite trades....with a very high success rate.

The....indicator with the Blue Dots....is my Scalp Reversal....and the Green_Red is my TripleWave. The....Horizontal Lines....on the TripleWave....which are kind of wavy....tell me when Price is OB_OS....Extreme OB_OS....and Wild Extreme OB_OS.
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The following Rules state:

If the Indicator is....crossing over the Wild Extreme OB....then you can hit a Market order while the Dots are still Green on the TripleWave....to go Short.

If the Indicator is....crossing under the Wild Extreme OS....then you can hit a Market order while the Dots are still Red on the TripleWave....to go Long.

By going Short when the Dots are still Green or by going Long when the Dots are still Red....this will often get you in with a Better Price....getting rid of Slippage. You are going against the Momentum....but at the Wild Extreme....Prices will just about always Reverse....enough to easily get your 2 ticks. If you do this trade....with the Trend on the 610....it is very successful most of the time. Nothing is perfect....you can lose trading this way....but I always trade the high percentage trades.

Above....Extreme OB_Below Wild Extreme_OB.... then I must wait for the Blue Dots to....Stop....and the Triple Wave must turn to a Red Dot....before I can go Short.

Below....Extreme OS_Above Wild Extreme_OS.... then I must wait for the Blue Dots to....Stop....and the Triple Wave must turn to a Green Dot....before I can Long.

Between Zeroline_OB or OS....then need to be careful....pick your trades wisely.

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Trend is smooth....on the 610....Ride the Trend
Trend is choppy....on the 610....Scalp the Trend

Range on the 610....if large enough....go for 2 ticks....on the 20 tick chart

Market fast....usually Trend is smooth....can Ride the Trend

Market slow....usually Trend is choppy....often goes into a Range Condition....Scalp only

Market at a crawl....1 tick and smaller contracts....or don't trade at all
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When you add the ACV to this....even better. I would not recommend using the ACV by itself. I do trade with the ACV....without charts....but I have been doing this for years....and I think I can read it fairly well....and I....Do Screw Up sometimes....reading it. I still prefer to use the ACV with charts....but it really is an adrenaline rush....without charts....haha. Hell....that sounds like gambling.

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My Disciplined approach to trading....is based on Strict Rules....that Must be followed. If I don't follow my Rules....I will lose. As I said before....my Motto is....Discipline plus Simplicity equals Success. A trader can have the best charts and indicators in the world....but if he or she doesn't follow their Rules....the charts and indicators mean nothing.

Hope this helps someone.

Bill
(in beautiful Seattle)
VSTscalper
 

Attachments

Quote from 5Pillars:

VST - Do you at all plot your own MP levels for the ER2 prior to each trade day to help pick the most optimal locations to scalp from?

I see one exceptional set-up from your chart example if MP was involved as a consideration.
More...

5Pillars,

I have never used MP. Can you show the MP for set-up?

VSTscalper
 
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