Extreme scalping

Well i would put this in extreme trading,...but i think it will spoiled long term system,...

Ok. for this system i use 15 pip SL,...I enter based on Pars, and Price as the leading indicator... It is not good for health to constantly use this system,..., but basicly it goes like this,...if price go up, go long, if stop moving dont close longs or shorts, but rather go double contra position,...etc, till hearth attack...

You are deranged !

How is it working out for you?

so far good,...but health is another thing...,i manage to get some nice longer trends like 30minuts yesterday,...the point is to not stop if profit accumulating,...

DE 123,

assuming you have no losses (which this system couldn't afford),
what is your aveage gain after 10, 20 and 50 trades?

what is your average cost per trade?

regards
daytrading

ofcourse there are looses,..its better to accept small loss then sl being hit,...but i will have to test it few more times,..since yesterday i began to imply it in trading,..average gain so far is 3-5 pips,...but its very bad for health,...so i needed to do 3 buda meditation before i could felt asleep...

average costs,...very few, mainlly spread, so far...

DE 123,

Ok, thank you.

I am asking because I know that "scalping" can work - but it depends largely on the setup and the definition of it.

What scalping is referred to very often is not real scalping. It originated in the pits where traders physically too 1 -2 ticks from the market noumerous times....no stops as such and no indicators on screens but orderflow and noise in the exchange.

If you know what value a tick has for you, i.e. gross value minus cost, times opportunity less slippage, then you can think about scalping with positive long term expectancy.

The problem which is often overlooked is that the performance on an extreme short term based method can fluctuate drastically influenced by very small variations.

Example 1: assuming you bank 4 ticks on average, you have no losses and no commission to pay and your bid/offer spread is 1 tick and your "system" gives you 20 signals per day.

After 1 week, the calc. looks as follows:

20 (signals) times 4 (ticks) = 80 (ticks) times 5 (days) = 400 ticks.

Example 2: assuming you bank 4 ticks on average, you have 25% losers and 75% winners, no commission and 1 tick bid/offer and 20 signals a day.

After 1 week:

15 (signals) times 4 (ticks) = 60 (ticks) - 5 (signals) times -15 (ticks) = -15 (ticks) times 5 (days) = -75 (ticks)

[I have taken your s/l of -15 as a basis and 25% is a conservative estimate of losses for this sequence]

So, with a slight adjustment as to probabilities, you have results that vary extremely from +400 to -75 ticks.

I am sure that you know what you are doing, but I feel that readers of this thread with low or no experience need to be aware of the increased risks of what is referred to as "scalping" these days.

regards
daytrading

Daytrading - do you know of any traders that got rich after scalping for 5 years?