Ftse Professional Scalping

[cryten]

vicious and appaling wh\t a crock o shyte someone whos talking about scalping via spread betting if an indicater points up is obviously going to get some stick if hes tsalking about teaching people

Well that's a shame especially as I know enough traders who manage to do just that. But Yeah Price action man, indicators are useless and only pros use fibs and PA. Which is rubbish if that were the case we would have all cottoned on and be minted by now, the reason it's not is the same with indicators, there is some skill required for this game whatever way you wish to play it.

Anyway bored of the same old disgruntled keyboard warrior schpeel. Ciao!

 

[Aspire]

Personally, for what it's worth, I'm dubious.

I scalp FTSE futures for a living and results suggest I'm reasonably good at it.... but

1) If I had to use a SB firm instead of TT I would be fcucked

2) I'm yet to be convinced there is an indicator which can help me.

However, this guy isn't asking for any money so far, and he's offering his own funds to trade with so I for one am keeping am open mind and would be very interested in what he's got to say.


Also, TD, I understand why you might think trading longer time frames (for which spread betting offers less of a handicap) may be easier to learn but I strongly disagree that it is easier to make money spread betting than trading with direct maket access.

Some of the reasons I think spread betting is easier:

a) The firm will always take the other side of your trade meaning you never have any liquidity issues. If you've ever spread bet a product like Natural Gas and then actually seen a direct market ladder for it you'll realise how much of a blessing this is.

But how wide is the spread on NG with an SB firm and what is the maximum size they will take. This game is all about exploiting inneficiencies and if someone will give you a better spread than the live market and will take size they are just asking to be ripped apart.


b) Yes SB firms platforms freeze from time to time. So do exchanges. I've been at my prop firm for just under five months and so far we've had the exchanges go down twice with traders trapped in positions.

Yep, it's a bitch for us all.

c) SB firms keep fixed spreads. In the direct market, the participants have direct control of who will provide the best bid and offer. The spread on GBP/USD stays at 3 for me with E*Trade on non-farm payrolls. On my direct market, the spread can widen to five times this at least.

But the majority of the time on the majority of markets you will be hard pressed to find a SB quote that's better than the live market is offering.... I have never tried spread betting over NFP but can you really get filled at such a good price as the figure is released? If so this is another ineficiency we should all be exploiting.


d) Direct market limits you to contract sizes. Spread betting does not. This means that if 2% of your account is £204 you can position your risk almost PERFECTLY.

Agreed, but soon you'll be doing bigger size and this will cease to be a problem.

e) SB firms make MISTAKES. This is rare in the direct market. I see SB firms regularly misquote prices and when they do I clean up

Good on you, but I would say this is a matter of taking advantage of the SB firm's mistakes rather than their platform improving the efficiency of your trading. However, although the direct market, of course, cannot make mistakes, it's participats often do some pretty silly things and I firmly believe I am better positioned to take advantage of these using TT than I would be with a spread betting platform.

 

[rathcoole_exile]

Gents,
with my Advisor hat dusted off, can I ask for everyone to take a deep breath and chill with the abuse and language please.
Let's see where this is going, but let's keep it civil

r_e

 

[nine]

Also, TD, I understand why you might think trading longer time frames (for which spread betting offers less of a handicap) may be easier to learn but I strongly disagree that it is easier to make money spread betting than trading with direct maket access.

I'm not a fan of spreadbetters because of the potential for self-interested distortions but I can see trader_dante's point. If you are a UK resident then spreadbetting is tax free. If you trade a long enough time frame then the spreads and distortions are relative noise and thus just a larger commission. In this case the lack of tax on my profits would be much more important the sum of the obvious and hidden commissions.

Thus spread betting could be a better choice for (say) a profitable UK swing trader.

In scalping on the other hand the spreads and distortions might well **** one up the ****. (OK RE )

 

[Aspire]

Gents,
with my Advisor hat dusted off, can I ask for everyone to take a deep breath and chill with the abuse and language please.
Let's see where this is going, but let's keep it civil

r_e

My appoligies for the language and any offense I may have caused.

My post was not intended to be abusive. Having spent way to much time browsing these boards I have a great deal of respect for Trader_Dante. I was just tring to argue why I prefer direct access... and I hope I was encouraging the OP to continue.

 

[2George]

Aspire

It depends on what scalping system you use for SB. If you are happy with 2 or 3 points/pips then indeed the SB format is not for you.
A lot of the comments I see are to do with people's perception of how they understand scalping - or reversals - or swings, in relation to their own system.
If you are looking for big scalps with your system then SB will work but if your system is based on a succession of smaller scalps then it may not work.
Whatever you use all the good guys wish you success - and avoid the bad language please!
George

 

[nine]

You are describing what I do 2George and its not really scalping --- its micro-swing trading.

 

[2George]

Nine

Agreed completely. It is down to the degree and the intention. The intention of course changes as the chart changes. I look for big moves but accept what I am dealt.
George
'Trade what you see and not what your hear or hope.'

You are describing what I do 2George and its not really scalping --- its micro-swing trading.

 

[new_trader]

It depends on what scalping system you use for SB. If you are happy with 2 or 3 points/pips then indeed the SB format is not for you.
A lot of the comments I see are to do with people's perception of how they understand scalping - or reversals - or swings, in relation to their own system.
If you are looking for big scalps with your system then SB will work but if your system is based on a succession of smaller scalps then it may not work.
Whatever you use all the good guys wish you success - and avoid the bad language please!
George

This is what bothers me about people who talk about scalping. Scalping is not defined by the number of points you make on a trade! Do you see or do you not see? Scalping is defined by seeing and understanding the opportunity to go with the immediate trend which usually yields 2-3 points profit...IMMEDIATELY with very tight STOPS. It is not a 'system' where you close a trade when you have 2-3 points profit but use a wide stop.

You venture (risk) 1 point to make 1 or 2 points and sometimes more. You cannot do this S/B. You CAN-NOT.

Do you see or do you not see?

 

[2George]

No argument

No argument from me if that is your intention to risk one to get two.
It is impossible to beat the SB broker using this definition and intention.
The spread would beat us all from the outset!
My preferred definition of scalping is to find the weak spot in the chart and trade it but we all 'see' charts in a slightly differing manner so that is why I use oscillators to help.
I never go into a trade looking for and amount, only looking for a profit.
George
“Trade what you see and not what you hear or hope.”

This is what bothers me about people who talk about scalping. Scalping is not defined by the number of points you make on a trade! Do you see or do you not see? Scalping is defined by seeing and understanding the opportunity to go with the immediate trend which usually yields 2-3 points profit...IMMEDIATELY with very tight STOPS. It is not a 'system' where you close a trade when you have 2-3 points profit but use a wide stop.

You venture (risk) 1 point to make 1 or 2 points and sometimes more. You cannot do this S/B. You CAN-NOT.

Do you see or do you not see?

 

[savioursofpop]

I scalp the FTSE moderately successfully (average 5pts) a day over the last couple of years. I'm highly skeptical of posts such as this but I'm always eager to learn - George if you're serious - let me know what value you think you could add to my trading.
mark

 

[2George]

I hope you succeed

I certainly was serious and hope what I sent you will help you succeed.
Good Luck
George

I scalp the FTSE moderately successfully (average 5pts) a day over the last couple of years. I'm highly skeptical of posts such as this but I'm always eager to learn - George if you're serious - let me know what value you think you could add to my trading.
mark

 

[Aspire]

Hi George,

Am not interested in opening a spread betting account or trading your money for you, but I too would be very interested to see anything that could improve my trading and would apreciate your help as well if you wouldn't mind?

 

[2George]

Long

I would need to see how you traded, the timeframes, the type of trading (trend/swing/scalp/reversal etc) and then give suggestions as to where your system could be improved.
I would normally help via a PM and private email as no 2 traders trade the same way but unfortunately I will be away until the middle of June so if you can wait, then PM with your details and email address.
George

Hi George,

Am not interested in opening a spread betting account or trading your money for you, but I too would be very interested to see anything that could improve my trading and would apreciate your help as well if you wouldn't mind?

 

[Aspire]

Hi George. Thanks for your reply.

I currently scalp for a living. My style is relies on having the fastest execution speeds and lowest commissions and so is obviously different from what you are doing as it couldn't be done via spread betting.

I wasn't so much looking for your help with what I currently do as hoping that you had something that you could send or post here that would improve my overall knowledge/abilities/understanding and could expand my trading/ money making repetoire.

I very much appreciate you offering more in depth help but I don't want you to go to that much effort for me, I was just hoping you might be able to simply post here or send me some good, helpful info.

Aspire

 

[2George]

Learning

Learning something new always interrupts trading and if you are already successful do not change it. I’m afraid that general information is only of general use so I apologise in advance.
I look for bigger scalps than the normal scalper. 1 or 2 pips/points profit is unacceptable to me although I take them if the trade has turned against me. The way that I do this is to use 2 or 3 momentum indicators in combination with trendlines, resistance over red and support under green, ignoring all spikes. Moving averages are something I only use to show me where I am in a new trend, but primarily trendlines and momentum indicators amended specifically to the timeframe you trade.
However, my suggestions have a qualification; do not assume you know how to use a momentum indicator as they have differing benefits. Between them they all give three great signals – support and resistance, divergence and they predict the beginnings and ends of trends.
Good luck.
George
“Trade what you see and not what you hear or hope.”

Hi George. Thanks for your reply.

I currently scalp for a living. My style is relies on having the fastest execution speeds and lowest commissions and so is obviously different from what you are doing as it couldn't be done via spread betting.

I wasn't so much looking for your help with what I currently do as hoping that you had something that you could send or post here that would improve my overall knowledge/abilities/understanding and could expand my trading/ money making repetoire.

I very much appreciate you offering more in depth help but I don't want you to go to that much effort for me, I was just hoping you might be able to simply post here or send me some good, helpful info.

Aspire

 

[Aspire]

I wasn't going to change what I do now, but the markets are always changing and I think it is important to always strive to improve,learn as much as possible and expand your trading horizons and general awareness.

Yes, you're right the information was a bit too general, but interesting non the less so thanks.

If you've got a system/style of trading that you're happy to share then perhaps you could start a thread on these boards teaching and discussing it in a similar way that Trader_Dante has with his Pin Bars? I'm sure that there are plenty of people here who would appreciate it.

I have, of course, done my homework on all the indicators etc but have always been sceptical about their application. I don't use them myself but try not to be so arrogant as to close my mind to them if others say they can make money using them, and so would be very interested in following such a thread, especially as we are talking about the market that I stare at all day everyday.

 

[2George]

Good luck. It is unlikely I’ll make a new thread in the future. These threads are very time consuming because I take helping people so seriously. I’m retired, need to spend more time with my wife and want to play golf in the sun, enjoy my grandchildren, family and friends.
However, I’ll never say never.
George

I wasn't going to change what I do now, but the markets are always changing and I think it is important to always strive to improve,learn as much as possible and expand your trading horizons and general awareness.

Yes, you're right the information was a bit too general, but interesting non the less so thanks.

If you've got a system/style of trading that you're happy to share then perhaps you could start a thread on these boards teaching and discussing it in a similar way that Trader_Dante has with his Pin Bars? I'm sure that there are plenty of people here who would appreciate it.

I have, of course, done my homework on all the indicators etc but have always been sceptical about their application. I don't use them myself but try not to be so arrogant as to close my mind to them if others say they can make money using them, and so would be very interested in following such a thread, especially as we are talking about the market that I stare at all day everyday.

 

[FseXy]

2George, I agree with the others on here that are not negative or causing trouble, or getting into the old lame argument about price and indicators, tools and so on. If these traders can't be successful trading by simple indicators that use mathmatical calculations then why would they do well trading by price, it all lags to some extent, we are not in the trading pits here! And NO, you're not price so get over it. cryten is right. If Fibonacci works for you then good for you, it works for me too but I don't go blazing every forum about how all indicators are evil. Hey, why not ignore the fact that Tools and Fibonacci can and is made into good indicators while you're at it. Indicators were not designed to trade for you or make any decisions for you.

2George, I am not sure about you sharing this trade method of yours with others, or me. I would like to learn your trade style and see if it worked for me, I can use MT4 and trade commodities or other markets with no spread at all, it is mostly forex brokers apply spread to.

If you want please forward some details to me, I do not have the time to learn a great deal as much as I had a few weeks ago because I am busy developing and testing trade strategies with a private group. I will put as much of my free time into this though if you decide to send me information via email.

 

[2George]

Thanks , on hols for 2 weeks.
G