Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
This works if your entries are perfect and your win rate is incredibly high. It's highly unlikely to have both of these things(not impossible, just improbable). You'd want to do this on an instrument with very high tick values, like US treasuries.
I think you may need some more advanced semi-algorithmic order entry and stop loss too. I found when trying to scalp a few ticks I could do pretty well. However, I could read via the tape that the market was trading very efficiently because when my stop would be hit the other traders would not be. The efficiency of the markets suggest that very few if any retail traders are doing this.
The problem is if you try this with a normal exchange stop loss or whatever, you will be selling out to the top of book. You would need to use a more advanced stop that only triggers when the probability of price at least touching the next price is very high or some sort of automated strategy that moves your take profit limit right to your stop level as soon as your stop level is cleared.
Generally for point/click scalpers, scalping becomes much easier when the markets are more volatile.
It sounds like R Trader has a feature called R Trader Bass designed to detect micro-instances where the spread widens by a set number of ticks and then to offer on both sides. They also have what sounds like a book stuffing algo. It sounds like they detect when the order flow is high and then stuff the book on the opposite side a few ticks below.
This is certainly interesting stuff. I have been working/thinking about similar ideas for a long time. However, I have also imagined there would be a discretionary component which would allow the trader at least some input, i.e. graybox.
However, I'm just trying to figure out if this can really work. I haven't tried it but it just seems that without some ability to add some of your own "edge" or ability to read the market the jumping to fill the bid wouldn't be a very sound idea. I mean let's just take a moment to consider the other market makers have more intelligence and have let the spread widen.
I'm curious to hear from anyone using either of these products. If one could use their market read or trading ability with these products then that would be very interesting. If it is just a "dumb" algo then I'm still interested to learn if it can really work.
You're welcome! I think for retail scalping what is more likely to work is to think of a scalp in terms of risk but not in terms of frequency. Think lower frequency, bigger size, higher R.
While many answers in this thread attempt to analyze what's possible or not, few are addressing the real issue: OP is scared to take a loss. Going for just 1 tick profits is where all beginners start out. They don't realize that they'll never be able to accumulate enough profits before suffering a 5 - 10 tick loss and so on until the account bleeds to death. Kudos to posters advising OP not to do this, but it won't help unless OP understands the reasons behind it.
Sent from my SM-G930F using Tapatalk
Telegram BPA Chat: https://t.me/+l3drbT3kYGc2Mjkx
We trade using Al Brooks Price Action and record our entries/exits in public for accountability.