What market is best for scalping?

forexchief.PNG
 
robthequant said:
Yes, any robot profitable trading against Forex non-ECN will be rendered unprofitable by the broker. Anyone who is trading against these companies especially scalping and making serious money is basically extracting their revenue.

One time I was at the Chelsea piers in Manhattan and saw huge brand new yacht with a helicopter on top. These things cost like +$15 million. Just out of curiosity I googled who own the helicopter+yacht by the registration number. And it was one of these Forex brokers who provide "exchange" to trade. More like a casino that trades against clients...
More...
it is the same at the CME..member ship has its advantages
 
REDP1800 said:
know ZERO about fx trading.. alway been scard since it is unregulated and hundreds of liquidity pools..
More...
I am not an expert, but I assume that everything you are "not happy" about CME times 100 :) They are bucket shops at the worst and "payment for order flow" pass through entities at the best, imho.
 
qlai said:
I am not an expert, but I assume that everything you are "not happy" about CME times 100 :) They are bucket shops at the worst and "payment for order flow" pass through entities at the best, imho.
More...
Let me be clear. I am not someone who is mad about my losses and I am not blaming CME. I don't blame them when I win and I don't blame when I lose. however, the CME acts so high and mighty as if the market is the cleanest in the world and nothing illegla or rule bending ever happens. ha ha ha
 
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...

You're kinda asking a misguided question for a number of reasons.

IMHO your two most important considerations are: 1. the capital for margin you have available to you, and 2. your trading system edge.

Item 1. is known for all the markets you listed. Item 2. will be quite variable and highly reliant upon your skills and competency for all the markets you listed. A trading system that works for CL may very well suck for ES.

Another thought: your "list" discounts the possibility for leverage assistance in a low volatility product name. You trade the markets you are very good in. Being very good in a specific market is priority one if you want to be a competent scalper. Let's say, for the sake of discussion - that happens to be the US Five Year Note Future. You have up OnTR and OffTR cash feeds, all the other related short dated and long dated Treasuries, an excellent grasp on the technicals and fundamentals that move the US Five Year; it's your game. You're supremely confident with the Fives and you are very good at managing the order queue and working bids and offers in that market. Let's say for the sake of discussion that you can take 3 pips out of the US Fives per day on average. That's $23.44 (rounded). If you've got a $125K account I would imagine that Advantage Futures would probably let you take a 100 lot intraday if you're going to be flat at the close. The SPAN margin on a one lot in the ZF is quite less than CL for obvious volatility reasons.

So, can you make a living on $2,344 per day? Sure.

You can trade 100 lots in a low vol market or 2 lots in a high vol market. You can lease a CBOT AM for $343 per month or a NYMEX seat for something like $423 per month if the volume justifies it.

Point being - expertise trumps everything. Trade what you are very good at.
 
qlai said:
Thank you for answering. I always assumed that in FX, robots that make money will be shut down (or restricted) as they start adding size. ForexChief is it's own liquidity provider?
More...
Yes they are. They also provide liquidity for other brokers.
 
LloydPhill said:
Yes they are.
More...
I don't understand how people trade with these bucket shops. Maybe if you trade peanut account, they don't care. But as you start trading more money, how can you trust them? For example, if you get stopped, do you have any way to see if the pair actually traded at that level anywhere else?
 
Forex market is probably the most comfortable for Scalping. It's created for intraday trading and that's where scalpers feel pretty nice :rolleyes:. And you can confirm from that by opening a practice account. It's asolutely free, for instance here.
 
You must log in or register to reply here.
Back
Top