What kind of techniques do heavy scalpers use?

[john99]

Quote from johnpinochet:

I've come to some conclusions recently about day trading. I think making day trading as routine, methodical, and dare I say boring as possible, is the only way to long-term success. I think also regarding value, it isn't only value of price, i.e. are we at the bottom or top of a range. It is also about the value of time and frequency of trades. Maximize your use of time and minimize your frequency of trades.

I agree. Trading should be boring in a way to where it "doesn't" get your adrenaline pumping. This is done through correct position sizing for your account size. Position size should be set at a level to where you don't have to hesitate when taking a trade. Trading too large of size causes fear in traders, and fear equals losses in the long run.

PS.- Nice to see other bond traders. I see this as a sign you have been trading for some time and you know how to trade.

 

[gurucandidate]

from frank-london:

"The EC, ER2,BP, YM all have alot more daily range and intra day swings. "

Also, don't forget CL. It is great for scalping. It bounces around more then ER2.

I am a scalper in CL (in fact I started a thread under Energy Futures called: Some Observations on Scalping Crude) and I am migrating back and forth between ER2 and CL depending on where the higher tension is.

Regards,

GC

 

[frank_london]

this was just posted in another forum http://www.youtube.com/watch?v=BtJ2BZ2vCm0
and i thoght it would be relevent here its kind of hard to see though

 

[Bernard111]

Quote from frank_london:

on the bonds

frank_london, can you please PM about about to access to $2.60 rt on bonds for the retail trader?....

Thank you,
B.

 

[jack hershey]

Quote from Charly:

Thats a bit much Jack - although quite funny. in the end.

>>>The futures index I trade lags well behind the cash index and the futures index that I monitor to be able to trade my lagging index.<<<

Is it allowed to ask which lagging future(s) you are talking about?

Thanks.
Charly

Sorry I missed this.

I was in Chicago just after thiswas posted.

I trade the ES and I use the YM and INDU which lead the ES during "end effects" MODE. During the continue mode it does not matter since during all of continue I am just piling up profits for price change.

Later in 2007, the journals will move to expert and then all of this will be taken up in detail.

 

[jack hershey]

Quote from dcraig:

It seems to me that this is a proposition that could be tested by analysing the data. Such being the case, there is no need for it to be "controversial" at all. If nobody can be bothered doing this, then I suggest that this thread not be polluted by a Pythonesque exchange of "this is not argument, this is contradiction".

To best understand making money using leading indicators at turns, it is a good idea to make comstasias of the platform your are trading on.

today it is necessary to have several platforms and several codied additions to see what is going on.

If you do not have anything to see or the automated treading software, it is not possible to "see" anything.

Once you have these things then the data base keeps a record of the market operations.

There is no controversy when the market is seen. There is a lot of contraversary coming from people who do not have trading displays and software that works for seeing the markets.

At some point there is a consideration of how trading is done.

Most people who do not get or understand what is on the table use price to trade and they are oriented to probabilitiy considerations as well.

On the other hand people who use our approach are using time to trade. We look at the lead time and the persistance of the signals. Raw data is used and not snapshots it turns out.

 

[jack hershey]

Quote from dcraig:

I would put it more strongly than that. It is a proposition that could be tested statistically. As you say it is possible to show charts in support of any assertion.

What is best toconsider is using charts to make money.

There is a big difference between being "right" and being rich.

To be rich you make the market, which is always right, work for you be being able to see what the market is saying.

It is also a wise idea to display what is going on and the have that totally backed by software.

Proving that you are not seeing what the timing of trading is, is not very important.

What is important is to get on the right track to take all that the market offers.

 

[jack hershey]

Quote from frank_london:

I know for a fact that there are no constant relationships in the market. There are things that last for a short time then disappear though. If you are still trying to figure this out you are way behind in the game.

Luckily, there is an alternative to your viewpoint.

The relationships are measurable and they demonstrate a sequential relationship.

It is like the second hand of a clock counting off the time in a very standard manner.

We see it. We use it. We extract the profits.

you do not agree. That is just the way it is.

 

[jack hershey]

Quote from john99:

When there is economic news I see ZN being leading index (most the time trading inversly to stock indices), then ES, YM, ER2, NQ. Overall NQ lags. Track the time and sales tommorow on the CPI number and lets see who makes the first move.

lol...

 

[jack hershey]

Quote from jem:

Jack said


the futures index I trade lags well behind the cash index and the futures index that I monitor to be able to trade my lagging index. All of this is a very fortunate circumstance for me.


first of all jack I once did quite a lot of research on this issue.


Where is your cash quote coming from. Is is dynamic or are you getting updates. How frequent are your updates. last time I checked qcharts cash quote updated stochastically - periodically. It is not a dynamic caluculation.

currently we calc it from the stocks directly.

do you know who has a faster quote?

No but we do know our calc precedes the feeds of the index for cash. That is good enough for us.

Where do they get their "fast cash" from? (or at least they used to get it when I did the research)

color=green] Wish I knew who they was[/color]

does anyone have a way to calculate an even faster cash?

Yes we do

How come you did not explain to your students that your "leading indicator" is derived from a snap shot of the past.

We use streaming data. That is not a snap shot. And I do agree that we have a way of calc ing the tails on the dist of the streaming in very short periods.