Over the next two newsletters I am going to explore the topic of frequency in trading; why finding a high frequency style of trading is important and why most retail traders don’t adopt this approach.
How can you scalp the ES for 1 or 2 ticks these days when the volatility is so high. It's ok in the overnight session I guess, but in market hours, the moves are very fast. Are you just talking about specific markets such as bonds?
We don't just trade for 2 ticks, that was an example. We take whatever the market gives. If it moves 6 or 7 ticks at a time then we should be targeting that profit potential. For NQ for example, it can even more. Point is, we are in and out in a couple of seconds for whatever we can get but usually a couple of ticks at least in most markets
I used to sit in front of a screen and wait for one hour or one hour and a half to do one trade. When I was in luck, I had some profits. When I was not betting right, there was little to learn from that losing trade. What a poor feedback system!
What about the cost of commissions in such high frequency trading? They surely take big cut when added?
How can you scalp the ES for 1 or 2 ticks these days when the volatility is so high. It's ok in the overnight session I guess, but in market hours, the moves are very fast. Are you just talking about specific markets such as bonds?
We don't just trade for 2 ticks, that was an example. We take whatever the market gives. If it moves 6 or 7 ticks at a time then we should be targeting that profit potential. For NQ for example, it can even more. Point is, we are in and out in a couple of seconds for whatever we can get but usually a couple of ticks at least in most markets
Is this not overtrading?
I used to sit in front of a screen and wait for one hour or one hour and a half to do one trade. When I was in luck, I had some profits. When I was not betting right, there was little to learn from that losing trade. What a poor feedback system!