M1 Countertrend Scalping Strategy

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You really need to be right 70% or
more of the time just to break even, and most traders cannot
do that consistently. But a great scalper can win 90% of
the time, and he can make a lot of money. This is a time & sales window for the Emini,
and I want you to focus on the size. You’ll see that most of
the position sizes are small. This is a 2-second period
between here and here. That’s 2 seconds, and this is sampled data. This is not all the trades
that took place in 2 seconds. Far more trades took place. However, it shows the point
that I want to make: that most of the trading is done
with very small position sizes. You know that 95% of all of the volume
traded in the Emini is done by institutions, and 75% of it is done by high frequency
trading firms, which are scalping, and they might scalp for
1 tick, or 2 ticks, or 3 ticks. How can an institution with hundreds
of millions of dollars in the account or in the fund make any
money by trading one contract? Well, they can’t. But that’s not what’s happening. It might look like that’s what’s happening,
but that’s not what’s happening. The institution is repeatedly trading
one contract and building a position. Very often, the position
will be several hundred contracts, maybe even thousands of contracts big. You’ll sometimes see a very
large position – maybe 407 contracts or 809 contracts – being
traded, and some of that is from institutions
closing their positions.

Quoting PipsArt

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