10 min Cable scalp

[Jason101]

Hi,

I have been back testing cable scalping on the 10 min time frame and I am contemplating taking it live.

In order to do this I will need a s/b company that will allow me to place a 5 pip trailing stop loss. (And a spread of around 3pips (round trip) with 24h trading.

At the moment I am with IG which have a minimum of 10 pips on an automatic trailing stop.

I am aware that this type of trade may not be most suited to spread betting but spread betting is what I am use to.

Any thoughts?

Thanks
Jason

 

[Phil Mibbutz]

Try GFT.

 

[Jason101]

Thanks,

I will give them a call.

Jason

 

[Jason101]

Just got off the phone with GFT.

I can confirm there cable and Euro/major spreads are between 1-3 pips, depending on volatility.
The other majors are at 2-4.

They do offer a no lower limit stop loss and a no lower limit initial stop.

My only reservations with them are that they require a deposit of $2500 (or £1600) to open an account.
I have accounts with ETX and Ig, but I wanted a new account to live test scalping. For which at a certain point in the trade a trailing stop of around 5 pips would be required.
Now considering this is a trial at scalping (I usually swing) I feel it is a lot of money to tie up in something that may not come to anything.

I thought about opening an account and then withdrawing £1200, but GFT said you need a minimum of £400 on deposit to keep an open position. At this point I got a bit fed up with the telephone conversation.

So if any one knows of any other spread betting firms that would offer a low cable spread and auto trailing stops of at least 5 pips. It would be great to hear from you.

Thanks
Jason

I may re- post a version of this in the GFT thread too. It seems relevant.

 

[Jason101]

Oh and another doubt I have is that on the GFT thread, someone said that, if their position is not filled, instead of returning it unfilled. GFT will wait and fill it at a price not so advantages to you.

Jason

 

[Phil Mibbutz]

As far as I remember, you only need enough in your account to cover the normal margin, which wouldn't be anywhere near £4000 for a small stake. You'd be able to try your strat using £1 per point/pip with a few hundred quid.
Incidentally, if your method involves trading directly from charts you might have a problem with Dealbook!

 

[Jason101]

I thought about opening an account and then withdrawing £1200, but GFT said you need a minimum of £4000 on deposit to keep an open position. At this point I got a bit fed up with the telephone conversation.

Sorry Phil, this was a typo, it should have read "a minimum of £400".

So this means that in addition to the amount of money used to trial, you need an additional £400.

 

[Phil Mibbutz]

Sorry Phil, this was a typo, it should have read "a minimum of £400".

So this means that in addition to the amount of money used to trial, you need an additional £400.

Have to say that even at £1 per point I think you'll have to be prepared to use that sort of sum finding out if something works.

 

[alan5616]

Oh and another doubt I have is that on the GFT thread, someone said that, if their position is not filled, instead of returning it unfilled. GFT will wait and fill it at a price not so advantages to you.

Jason

Hi Jason,

GFT do have an option, via their DealBook 360 trading platform, to select how much slippage you are prepared to accept. In a fast moving market, if you have selected the number 2, you should not get filled more than 2 pips away from where you wanted to place your initial trade.

 

[Jason101]

Have to say that even at £1 per point I think you'll have to be prepared to use that sort of sum finding out if something works.

I would be happy with about 60 trades over different time periods as a trial. If I get any less than 50% failed trades, then I would abandon my scalping ideas. The average initial stop loss would be 15 pips, this equates to a £450 trial.

If I used GFT, I would need to have £850 in the account just to experiment, let alone first putting in £1600, just withdraw £750.

It seems a bit un-necessary, if there is another S.B Co out there that offers stops of at least 5 pips and offers trailing stops.

Kind Regards
Jason

 

[Jason101]

Hi Jason,

GFT do have an option, via their DealBook 360 trading platform, to select how much slippage you are prepared to accept. In a fast moving market, if you have selected the number 2, you should not get filled more than 2 pips away from where you wanted to place your initial trade.

Thanks Alan,

That is a pretty impressive feature for a spread betting outfit.
That would be very helpful for scalping.

Jason

 

[Phil Mibbutz]

Thanks Alan,

That is a pretty impressive feature for a spread betting outfit.
That would be very helpful for scalping.

Jason

Not if it means you just don't get filled...

 

[alan5616]

Not if it means you just don't get filled...

True. But, from what I know, their re-quote percentage is very low. I'm making 1-3 trades a day and have yet to be re-quoted or, suffered any slippage. If I was a scalper, seeking a SB company, I would, certainly, consider GFT. I use their DealBook Web trading platform which I rate highly. It's very simple and faster than many others that I have used.

 

[ibex666]

scalping and sb ???? the two dont mix !!!!! be carefull

 

[Jason101]

scalping and sb ???? the two dont mix !!!!! be carefull

I know. I am not looking to scalp in the truest sense of the word. I know, it does sounds a little tricky, I am looking to risk 15 pips to gain 30+, The big need is to be aggressively trailing a tight stop of around 5 pips from the 15 pip profit position. This is why the right spread bet co. is key.