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Scalping is not the same as it was even 5-10 years ago. The last time I was on the floor I saw no more than a dozen traders in the Bond pit (10-yrs were slow, 5-yr options I think was busy). Your example doesn't provide enough context. You need a strong level. Once you could place a 1 tick SL (in bonds), it became 3-5. Traders had assistants with headsets arbing, trading pairs, and finally executing orders in the electronic market upstairs. Everybody watched the big locals and the institutions. Notes were deep--that is bids and offers would suddenly appear for 6-8k, then more would hit--so if you were with them fine otherwise you're dead. Electronic interest rate traders start to place orders an hour before the pit opens. You would also either be a member or a lessee so your commissions would be 10 cents up to a certain point then free.
Cisco is about $600/mo. for charts. TT is free if you want to pay retail commissions, otherwise about $500 one exchange.
The 10-year options pit was still pretty active. Some traders went to grains (scalping is scalping). If I want a price I just make sure that a level is going to hold then place a limit order and let the market trade into it. If you are patient you can place orders beforehand or alerts. There are occasions where you can save yourself a few ticks over a market order. Practice with Ym perhaps. Follow the auctions and learn about interest rates. Good luck. BTW, One of the best ways to lose money is by opening your trade in the wrong location, and then placing your stops too close.
Broker: Advantage Futures, Ninja/TT and InvestorRT/IQFeed.
Trading: Treasury futures
Posts: 312 since Nov 2010
Thanks Given: 194
Thanks Received: 912
I'm not yet familiar with Sharky's trading techniques, but I'd like to make a general comment about level 2 market depth in the Treasury complex. A great deal of the trade in Treasuries is yield curve spreading (pairs trading or butterfly trading) or basis trading (cash/futures spreading). Autospreaders generate orders at price levels where traders would like to execute a spread, but often these orders are not at the best bid or offer. When you see big orders above the market they may very well be contingent on some offer in another instrument that is at the best offer, but they will cancel when that offer cancels. Also, a lot of bluffing is going on.
"You don't need a weatherman to know which way the wind blows..."
Do you even think it is worth it for me to be looking at those "perceived " S&R numbers in level II then?
I draw little trend lines on my charts (just ahead of the current price) wherever I see larger size sitting above/below current price... and generally, it appears to be fairly accurate... however, sometimes I see large orders (outside the current price) just come and go.... they are placed then they just disappear.... like you said, bluffers or some other kind of trick.
So my zn classroom was to try to train your minds to see scalp entries, s/r and where price is at all time,this class will move more in the seeing trend, s/r and how to enter real markets for real trades,please this is not gonna be a one on one just some …
Also double click in the search button and it will give you options.First is attachments and that should give you a lot of options in your search in this FANTASTIC forum.
Hi Sharky, do you exclusively trade only ZN? Do you also trade ZB and ZF? Thanks
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