What market is best for scalping?

R

robthequant

What market, broker, and instrument combination is the best for scalping from your experience?

It can be any market: bonds, stocks, futures, FX, you name it.

Regardless of strategy, or trading method, in terms of tick to trading cost ratio and volatility that is conductive to capture 1-5 ticks and be able to make profits.
 
These days you need nothing more than ES, CL and NQ, like SimpleMeLike already said. Best example is today, I think that should be enough volatility, action and volume for anybody.

But these markets will not always stay like this, it will slow down again, sooner or later. The action will move to other markets, and it is good to get familiar with them so you dont always arrive too late at the party.

From my own experience, FDAX, FESX, FGBL, FGBM, ZN, ZB, GC, 6e and 6b in addition to the already mentioned ES, CL and NQ, all these markets together will make sure that you will always have some good action to deal with.
 
CALLumbus said:
From my own experience, FDAX, FESX, FGBL, FGBM, ZN, ZB, GC, 6e and 6b in addition to the already mentioned ES, CL and NQ, all these markets together will make sure that you will always have some good action to deal with.
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FESX? Wait what?

no freaking way. Forget it. you probably have never looked at these markets or you wouldn't say that.
 
robthequant said:
What market, broker, and instrument combination is the best for scalping from your experience?

It can be any market: bonds, stocks, futures, FX, you name it.

Regardless of strategy, or trading method, in terms of tick to trading cost ratio and volatility that is conductive to capture 1-5 ticks and be able to make profits.
More...

It wil change every month or every week. Thus, even if you're subscribing to all the markets in the world (costs exceeding > $500 per month)...you couldn't possibly learn each & every market in the world to be able to successfully trade one whenever it stops being the "best for scalping" and something else becomes the "best for scalping"...

Like I stated above, it will change every month or every week.

By they way, I met someone once that had on his monitors most key markets of bonds, futures and forex. He had 8 monitors and paying excess $500 dollars per month in data subscription feeds. :rolleyes:

He was a profitable scalper (automated) but the costs and fees was eventually too much for him.

Wear a condom or pull out in time...you will find a different hot one every week/month.

wrbtrader
 
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traderslair said:
FESX? Wait what?

no freaking way. Forget it. you probably have never looked at these markets or you wouldn't say that.
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For a long time I traded mostly FDAX and FESX. What do you not like about it ? Too little volume, lol ? FESX only moves a few handful of ticks on many days, but of course you dont trade such a market, the FESX, or a ZN, the same way that you would trade the FDAX or NQ.

Thats exactly what my post was about: dont be a one trick pony. Be adaptive, learn to trade different types of markets, so you dont have to rely on trading ES during those 6 points range sessions that will come back for sure.

If you still believe that FESX is not a great instrument for short term trading, then maybe have a look what for example the London prop firms mostly trade: FESX and FGBL. I guess they know what they are doing.
 
robthequant said:
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Regardless of strategy, or trading method, in terms of tick to trading cost ratio and volatility that is conductive to capture 1-5 ticks and be able to make profits.
More...

If you have the guts, you can give CME's RB and HO a try. In terms of scalability and movement they cannot be matched. Period. $4.20 per tick on them, but don't let that fool you. Use caution with them. They are evil nasty gremlins that can make you rich or poor VERY QUICKLY if you throw caution to the wind. Spreads are awful comparatively, movement is jerky, but when you catch a run there, you are in heaven. Stops mandatory. Period.
 
thanks everyone, so far I have this list:

  • CME ES S&P 500 Index futures
  • CME CL Crude oil futures
  • CME NQ E-mini NASDAQ-100 Futures
  • CME 6b GBP/USD Futures (British Pound)
  • CME 6e EUR/USD Futures (Euro FX)
  • CME GC Gold Futures
  • CME ZB U.S. Treasury Bond Futures
  • CME ZN 10-Year U.S. Treasury Note Futures
  • EUREX FDAX DAX Index futures
  • EUREX FGBM Euro-Bobl Futures
  • EUREX FGBL Euro-Bund Futures
  • EUREX FESX EURO STOXX 50® Index Futures
What broker offers the lowers pricing on these?
 
robthequant said:
thanks everyone, so far I have this list:

  • CME ES S&P 500 Index futures
  • CME CL Crude oil futures
  • CME NQ E-mini NASDAQ-100 Futures
  • CME 6b GBP/USD Futures (British Pound)
  • CME 6e EUR/USD Futures (Euro FX)
  • CME GC Gold Futures
  • CME ZB U.S. Treasury Bond Futures
  • CME ZN 10-Year U.S. Treasury Note Futures
  • EUREX FDAX DAX Index futures
  • EUREX FGBM Euro-Bobl Futures
  • EUREX FGBL Euro-Bund Futures
  • EUREX FESX EURO STOXX 50® Index Futures
What broker offers the lowers pricing on these?
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Here is a better approach to the issue...Instead of asking us Jabba-the-Hutts here, go find a free trading package that allows you live access to those data streams. Go ahead and trade them on sim, try out your plan? Don't take the consensus of a room full of people and think that their answer might be the only one for you.

Your brain is your own, and may not work like anyone else's. By restricting yourself to only what other people say, you miss out on opportunities.

There was a time a couple years ago that I really got into Live Cattle at the CME. The traders I spoke with thought I was nuts, because they were all ES-types. I was like, "bugger off, the thing moves somewhat predictably, in a fashion I like, and has close limits."

It all comes down to what you will feel comfortable with, and the only way to figure it out is to try. That is also how I found MGC to be the holy grail for newbies wanting to learn the mechanics of trading without losing their shit, and in them trying out metal strats. It's a beautiful instrument to work with on metal strats. Liquid and volatile enough to move, with no arbitrage to speak of with its big daddy. Golden. (No pun intended. 8-) )
 
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