The Ultimate DAX Scalping Discussion Thread!

When your ready to really trade....post that log

Michael B.



Quote from Scientist:

No and yes.

No, scalpers don't always use fixed profit targets or stops. More flexibility is a good idea. I hardly use fixed parameters, I try to go with the flow and take what the market is willing to give me. As you can see in that log, at times I would take only a couple of ticks, at other times I would take several points. I think this flexibility is required to do really well, because it gives you opportunity to make large extra profits when time comes. I see no reason to sell a long just because a "target" is hit. I sell a long because it's time to sell. Vice versa for short.

I suppose the essence of my current trading approach is to hold onto things as long as possible. If I can let a scalp turn into a longer, "swing" trade, I will. Quite often, when I've got enough wiggle room to start with, I'll hold on and ride a move for 10, 20 or more points. Then I might pat myself on the back, call it quits and party. But to the downside, I hardly have any tolerance. Most of the time, I will get out if the trade only goes 1-3T against me. It has to be right from the beginning. As I get "wiggle room", I will trail to breakeven ASAP. Essentially, this approach works so well for me because all my losing trades close out at a tiny loss, while winners are being let run until I decide that it's time to reverse, not earlier. If you do this for any amount of time, you must make profits. Another edge I have is a high hitrate, because of the momentum and inefficiences which only scalping offers. My hitrate is currently around 70-90% most days. If my hit rate drops below 70% for 3 days in a row, I will have a "crisis control brainstorming session", which basically means I'll sit down, tearing the market into a million pieces and putting it all together again, until I have a higher rate and expectancy than before. Think of it as a kind of renaissance of trading approach. Sometimes, this session may last 3 days and 3 nights, but this is what keeps me ahead. It is not recommended for elderly traders.

As for time stops - Yes, but kind of instinctively. And "breaking rules" if market goes in your favor - Yes. And no, because breaking "rules", such as targets, when the market really walks in my favor is my main rule. But my loss-rules are iron clad and unviolatable. Letting losses run is the greatest blunder any trader can commit. I would rather screw up my hit rate than increase my average loss-per-trade. Just look at that silly bund trade I did today. It cost me EUR 340, because I let it run 2T more against me. Assuming that something will "come back" is stupid, because the more it goes against you, the more that direction is confirmed and your original direction negated.

Remember that the markets are essentially random and probabilities aside, you simply can't know what's going to happen. So trading isn't about being right. It's about being profitable. Or at best, being "wrong" small, and being "right" big. High-performance trading isn't about being a good winner, it's about being a really good loser.

Only when you fully accept and literally expect with every trade that it will probably lose, only then can you be fully proficient. When I enter a trade, I expect it to be wrong from the very beginning - until I'm proven wrong.

Scientist.
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Quote from roberk:

I see the lines on the chart . Could you expalin them. They look like good levels to trade off.
What are yoda pivots?
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Oh, I've explained that before. Do a search on it. They're just more pivots than the usual ones, 9 levels instead of just 3 or 5. I think you can find them on woodie's site. However, I generally still divide them into half-divisions once more, if the between-range is large.

Sorry, I can't attach the file type (.efs), but here's Woodie's site: http://www.woodiescciclub.com

There are some good tools on there, and it's free.

By the way - Regarding the fib levels; I hardly use fib tool, I do that with bare eye, it's quite easy to see after a while.

S
 
Quote from roberk:

The advantage of this tactic is that it lowers risk. see file.
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Why dont you trade this strategy for awhile and see what happens. The decision of when to close one or the other is subject to the same risks as any normal trade with twice the commissions. Please start another thread and keep us posted.
 
Quote from ElectricSavant:

When your ready to really trade....post that log

Michael B.
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LOL! A live log? You mean you want to see exactly what I'm doing and making??? At what price? :D

Yesterday, you said:

Quote from ElectricSavant: ...do I need to say more?

I really do not want to go into anymore detail....but my percentage that I risk is less than a whole number...

Michael B.
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And you want me to post an entire log? :D

I think I'll have to really think about that. There is of course a certain temptation to "swing dick" and brag a bit, but I think I can resist that. At the time I started this thread, I promised to myself I wouldn't be posting logs. I've already broken that rule once! There's several good reasons why:

- Many people will read it, and might get some clues of my painfully-devised strategies. Why give it away for free?
- People may also develop counter-strategies.
- I don't want to brag and I don't want to step on anyone's feet.
- I don't need more "fans", or people PM'ing me. (undesirable)
- An equal amount of people will probably be p*ssed off. (also undesirable)
- There's absolutely no benefit to be derived from it, other than maybe proving something, but why prove anything?

So yes, it's a tough call. I mean, anybody else here posting live logs? How about you, electric? easyrider? roberk? t4s? Baruch? :p

Posting that previous log was plenty. Posting live logs with dozens of trades publicly is like taking your clothes off in a shopping mall, no matter how good you are or how big your dick is. Anybody disagree?

Until somebody manages to talk me out of these points, I stand firm and maintain it's better not to talk to people about exactly what $ I'm making or doing in the markets. Nobody (!) else on ET does. Not even the hedge fund managers. There's a fine line between hints and full disclosure. We're all friends, but in a way, we're all enemies, too. Nothing's free.

P.S: And by the way, this thread isn't free, either. I want to get some value outta here, or I'll leave. :cool:
 
Quote from Scientist:

LOL! A live log? You mean you want to see exactly what I'm doing and making??? At what price? :D
So yes, it's a tough call. I mean, anybody else here posting live logs? How about you, electric? easyrider? roberk? t4s? Baruch? :p

.
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Scientist,

I might post a journal soon, mostly as a discipline and hoping that the wiser heads like you and Michael and all will pull it apart.
I have a (naive?) belief that giving out what I learn, if it is genuinely helpful , is part of what makes a man grow: Buddhist philosophy that I picked up after a decade living in Asia. (And easy for me to say as a still losing trader).
I really appreciate whatever you can offer; which is already much!
 
Quote from easyrider:

Why dont you trade this strategy for awhile and see what happens. The decision of when to close one or the other is subject to the same risks as any normal trade with twice the commissions. Please start another thread and keep us posted.
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========
I might do that oneday but for now I am more interested in scalping. I'll keep it in mind and let you know.
 
YAAAAYYY! Did you folks just see that DAX move???

I got in for the ride at 54 and sat in, covered 84!!!
See what I mean with "don't have fixed targets"?

Yaaay yay yay yay!!! That's why I love the DAX!

Well, I'm off & down the city strip for a roll today.

Have Fun & C Yous all L8R... :)
 
I don't believe you trade at all.....

Michael B.



Quote from Scientist:

LOL! A live log? You mean you want to see exactly what I'm doing and making??? At what price? :D

Yesterday, you said:

And you want me to post an entire log? :D

I think I'll have to really think about that. There is of course a certain temptation to "swing dick" and brag a bit, but I think I can resist that. At the time I started this thread, I promised to myself I wouldn't be posting logs. I've already broken that rule once! There's several good reasons why:

- Many people will read it, and might get some clues of my painfully-devised strategies. Why give it away for free?
- People may also develop counter-strategies.
- I don't want to brag and I don't want to step on anyone's feet.
- I don't need more "fans", or people PM'ing me. (undesirable)
- An equal amount of people will probably be p*ssed off. (also undesirable)
- There's absolutely no benefit to be derived from it, other than maybe proving something, but why prove anything?

So yes, it's a tough call. I mean, anybody else here posting live logs? How about you, electric? easyrider? roberk? t4s? Baruch? :p

Posting that previous log was plenty. Posting live logs with dozens of trades publicly is like taking your clothes off in a shopping mall, no matter how good you are or how big your dick is. Anybody disagree?

Until somebody manages to talk me out of these points, I stand firm and maintain it's better not to talk to people about exactly what $ I'm making or doing in the markets. Nobody (!) else on ET does. Not even the hedge fund managers. There's a fine line between hints and full disclosure. We're all friends, but in a way, we're all enemies, too. Nothing's free.

P.S: And by the way, this thread isn't free, either. I want to get some value outta here, or I'll leave. :cool:
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