Who said Scalping doesn't work?

[Gordon Gekko]

I know I've posted about http://www.collective2.com before and please don't think I am advertising it in anyway.

However, the point I wanted to make was that the top systems at the moment are short-term scalping strategies. I was always taught that scalping doesn't work. Theres one system that saclps the SP500 E-mini. He's doubled his money in 2 weeks with 73 trades and an 89% win:loss ratio!

The longer term guys are struggling to keep up!

Just wanted to stimulate some discussion...

 

[Skimbleshanks]

With the S&P emini scalping system, how are you defining 'scalp'?

 

[Gordon Gekko]

His last trade lasted 2 minutes where he brought at 1144.5 and sold at 1145.5. He calls it a scalping system anyway. Check it out. His or her performance is phenomenal!

 

[Skimbleshanks]

The performance is excellent, but it is almost impossible for anyone else to trade like that on the signals given - because the trades are so very short-term. Just as you'd be getting in, he/she would be getting out.

But I do agree that one point and 1½ points is the best way to 'clock up' the points intraday.

 

[Skimbleshanks]

I've just found out how to access the past trades - and he/she definitely has a preference for longs rather than shorts.

The trades are predominantly support and resistance, and using individual bar patterns. I would suggest that the 5 minute bar is being used as the main timeframe. Volume does not seem to play a part in deciding the trades, as illustrated by the fact that he/she missed the big drop down which had a nice volume set-up beforehand.

I would suggest that this is just a price action trader, using no indicators.

 

[BBB]

Scalping is about the only thing you can do at the mo in ES or SPY. It's a mess.

Trying to trade the trend means you'd have to keep a fairly far off stop - not ideal given the average trend length.

Different markets require different tools/techniques.

Just my opinion though, and I know I'll be shot down for this, but..... I wouldn't try scalping with a DSL connection from a commercial ISP like BT, Freeserve, Tiscali etc.

 

[London prisoner]

This is B.S. Papertrading that is it (for 2weeks bwahaha), nothing more nothing less. Nothing new. It's no system.

GGekko,
are you the GEkko from ET?

 

[Skimbleshanks]

As you appear to be dismissive of this type of trading, London prisoner, does that mean you are able to do better on ES?

 

[sandpiper]

Gordon, I suspect you know just as well as the rest of us that it's complete tripe. Skim, has the patience of a saint for examining more than a couple of entries. I looked at the first few in detail and then just couldn't be bothered when I realised what the author/vendor was doing.

I can only conclude that collective2 is just like a simulator, i.e. a price only has to print for you to get filled. We all know that in the the real world it doesn't work that way. The author/vendor gets filled enough times at the lowest/highest print enough for anyone to realise that they are effectively buying the bid and selling the offer. You can do this over and over again on a simulator and kid yourself that you can make money but try doing it in the big bad world (especially trading counter-trend as the author/vendor repeatedly does) and you will get your head handed to you pretty quickly.

Also, look at the ever increasing number of contracts traded, i.e. 4,10,20,30, etc, and you realise that this is someone who is not trading (and probably never has), who is just going for the effect that they know a large P&L will have on googly eyed subscribers.

In a way, I am kind of surprised at collective2. These "scalping systems" are cftc suits just waiting to happen and it kind of highlights the inadequacies of collective2 for verifying the performance of systems like this.

btw. I am not denegrating scalping or short term trading or suggesting that it can't be done.

 

[BBB]

Damn. Sandpiper - you've just stomped through my dreams with your size 15's

I'll have to go back to buying lottery tickets.

 

[sandpiper]

BBB,

Sorry mush . You interested in my golden fibonacci drummond dinapoli 52x9 squared lottery number selection method then?

I agree with you about the ES, i.e. short term trading being the best method at the moment. NQ stinks a lot of the time as well. I can't remember the last grind upwards being quite this painful. Although having said that, I do recall watching 666 on the oex for seemingly months on end.

It's funny though, up until the latest run up in the markets, there were but a handful of systems on collective2. Seems that the pack are starting to smell blood again. As I say, at least the cftc and nfa will have some job security again... .

 

[herbie14]

Hi
What kind of indicators do you think work well for scalping as it is such a micro environment, or it it all based on price action?

 

[Skimbleshanks]

The only way to replicate the trades is by price action alone.

 

[herbie14]

so you dont even need charts? what do you think are the best futures to scalp then?

 

[Thirteen]

1s with wide spread n good volume