The Ultimate DAX Scalping Discussion Thread!

Thanks velocity_trader for the kind reply. So kind of u.

By the way any chance u are the author of the course offered by tradingmarkets.com teachin Dax trading?

If yes, what really u teach in that course? Some scalping techniques or catching thoe 8-10 moves on Dax which happens all the time.

I am more a person who does 'all in all out' sort of trading. Aim for fixed size of targets and i always have a fixed size stop loss. When i see the setup forming, i just enter with limit orders and then i let the market give me my targets or hit my stops. However doing so, i miss some huge runs on dax. Moreover my techinque is a sort of dont watch really for the trend, having said that, it allows u to take bot trend and counta trend moves. I guess thats not the issue since scalping dont need u to be at the trend all the time IMHO.....

Thanks
 
How does one calculate the Risk Reward Ratio when writting options ? If I was to sell 1 x Dax 3900 Sep 04 Calls @ 20 points converted to $AU (multiplied by $8.00) the max profit would then be $160.00AU and I would of used $2000.00 Margin over a period of 35 DTE. If sold naked I would have an unlimited loss but I always roll if the market hits 100 points to my strike. At that point how does one calculate my options so I can workout my Loss ?

cul..Steve
 
Quote from velocity_trader:

Five contracts is not a problems and ten shouldn't be either.

In a market that is moving against you it might cost you a couple extra ticks on a few contracts of a 10 if you get out at the market.

You will also find that in slower markets if you offer 10 or more at a price you will get partal fill about half of the time.

In the grand scheme of things, it shouldn'e effect your trading much.
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Hi
Thanks velocity_trader for the kind reply. So kind of u.

By the way any chance u are the author of the course offered by tradingmarkets.com teachin Dax trading?

If yes, what really u teach in that course? Some scalping techniques or catching thoe 8-10 moves on Dax which happens all the time.

I am more a person who does 'all in all out' sort of trading. Aim for fixed size of targets and i always have a fixed size stop loss. When i see the setup forming, i just enter with limit orders and then i let the market give me my targets or hit my stops. However doing so, i miss some huge runs on dax. Moreover my techinque is a sort of dont watch really for the trend, having said that, it allows u to take bot trend and counta trend moves. I guess thats not the issue since scalping dont need u to be at the trend all the time IMHO.....
 
can anyone tell me while trading DAx, suppose u trading 5 cts at a time, is it true that if u have a hard stop of lets say 3 points and price comes down to 2.5 points , u are most liky to get stopped since the ppl on the floor will come a lil down a tick to sweeep u out aswel. I heard they can see the stops and u can get stopped if u have hard stops in place.

Thanks
 
there is no "floor" in the dax, unlike SP. All electronic, unless you are talking about underlying stocks in Dax index which I think there is a floor trading session.

Depends where you're stops are, whether they are in a relevant place. But, if you see a prior H as 25, and you plan to short it near there, the mkt will often trade 0.5 point above regardless of what happens afterwards.
 
Quote from harris_tch:

can anyone tell me while trading DAx, suppose u trading 5 cts at a time, is it true that if u have a hard stop of lets say 3 points and price comes down to 2.5 points , u are most liky to get stopped since the ppl on the floor will come a lil down a tick to sweeep u out aswel. I heard they can see the stops and u can get stopped if u have hard stops in place.

Thanks
More...
Regardless of your number of contracts, all markets and particularly the DAX, will typically try to take out prior levels by at least another tick, sometimes more, just to see (and potentially sweep) any stops there. However, I would not think that even if those orders were visible, a 5-lot would attract anyone to take the risk of gunning for a stop. There is tremendous potential reward in gunning stops, but only if you know there's going to be at least let's say 100+ contracts sitting on those stop levels. Why? Because if you take out a 5-lot stop, you're not gonna create much of a stop-run. So why bother.

Generally speaking though, I would not recommend putting your stop 1 tick from a prior high/low, in any market. That is a beginner's jester play IMHO. Make sure you have your stop at least a few ticks away, or at a level where you know you're definitely "wrong". That is of course only if you're a discretionary trader. If you use systematic stops, then well, all you have to do is go with the system.

Enjoy!
S
 
Quote from GeeTO69:

does everyone know scientists is also a successful business man? it is true..!

this man can do it all!!
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LOL! Hi GeeTO and welcome. This is still a clean thread, so stay on topic, please. :cool:
 
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