Scalping Strategies

[gunavadhi]

Re: Scapling Strategies

In my experience, scalping on momentum work wonders. It is almost of very low risk. I use to have 5min candle and waiting on choppy consolidation, traders' paradise.

I strictly use 5 min candles for the reason that I could see not only the movement, the "momentum" too. A fierce move on 5 min candle is more valid than on 1 or 3 min.

Keep moving your trailing stop very tight..you are done. I have not used any other indicator so far. The thing is, you have to sit and watch. But worth doing. more than 60% of price movement happens in momentums.

hello when you will enter and when you will exit according to your method sir?confused.

 

[NOMINDTR]

Re: Scapling Strategies

hello when you will enter and when you will exit according to your method sir?confused.

I use to take a position while the scrip is getting consolidated, dead, almost with ATR values less than 0.25 or 0.20, and keep moving my trailing stop closely for exit.

 

[Laksh]

Re: Scapling Strategies

I use to take a position while the scrip is getting consolidated, dead, almost with ATR values less than 0.25 or 0.20, and keep moving my trailing stop closely for exit.

One of the problems of entering a consolidation is that the breakout may occur either way. How do you manage that? Moreover, there are times when the breakout occurs one way then reverses after a little while and moves forcefully in the opposite direction. These issues need to be settled before entering such atrade.

Laksh

 

[columbus]

Re: Scapling Strategies

One of the problems of entering a consolidation is that the breakout may occur either way. How do you manage that? Moreover, there are times when the breakout occurs one way then reverses after a little while and moves forcefully in the opposite direction. These issues need to be settled before entering such atrade.

Laksh

I found Bollinger Band (9,2) on 2-min Time frame appear to be good
for some scalping opportunities.
http://www.traderji.com/day-trading/27421-bollingerbands.html#post307106

 

[NOMINDTR]

Re: Scapling Strategies

One of the problems of entering a consolidation is that the breakout may occur either way. How do you manage that?
Laksh

Scope of homework and/or constant observation of price action, would give you clue out of experience. (True) . If not you have your stop placed. And you can always reverse your position.

the breakout occurs one way then reverses after a little while and moves forcefully in the opposite direction.

Yes, I was exactly talking about the "forceful" movement in opposite direction. No such great break outs in scope of 5 min chart would reverse in most cases, as far as I know, IMHO

 

[NOMINDTR]

Re: Scapling Strategies

I found Bollinger Band (9,2) on 2-min Time frame appear to be good
for some scalping opportunities.
http://www.traderji.com/day-trading/27421-bollingerbands.html#post307106

At times, you get a some good move which could be considered greater than a scalp

 

[Mystic]

Re: Scapling Strategies

Hello guys....
I am new to the forum and also not very old in trading too...I am a full time trader and am doing this for past 4-5 months. I read lot of literature and watched many a videos, not to talk about paper trading for couple of months , before executing my first trade.

I can safely say that I am well versed with most of the technical indicators now and my main idea revolved around creating 3 strategies based on what I have learned which will prove them effective in different market situations.

You will be amazed to know that as i kept on improvising and optimizing these strategies what amazed me a lot is that human mind always look for complexities and this is what I was also trying to do earlier...i.e. incorporating many indicators to develop the so called Perfect Set-up and trying various permutations and combinations...but today I know for sure that simplicity is what we should strive for......

Don't fall in the trap of complexity just for the sake of it...try to bring as much simplicity as possible in your trading style...

I want to share the ultimate scalping strategy I developed lately to make profits. The only caveat is it is very simple to execute but very difficult to teach. So before making any big claims I must admit that I may not sound as articulate to explain as to how this strategy works but yes if any of you got a bit of what I am saying...i request you to jst for few weeks try to look in your platform for this.

 

[AW10]

Re: Scapling Strategies

One of the problems of entering a consolidation is that the breakout may occur either way. How do you manage that? Moreover, there are times when the breakout occurs one way then reverses after a little while and moves forcefully in the opposite direction. These issues need to be settled before entering such atrade.

Laksh

Laksh, the way I trade such cosolidation is
1) Place a buy stop limit order few point above the range (say for qty 1 lot) (using trigger price + limit price)
2) Place a sell stop limit order few points below the range (1lot)
At this stage both orders are in pending status
3) As soon as one of the leg is filled (say BUY is filled), I update the pending order and double the qty (my SELL order is for 2 lot now). This ensures that if the breakout is false and my
then I will be stopped out and at the same time participate in next move.
4) If breakout is success with my first entry, then I modify the pending order to 1 lot and start trailing as per my rule (Sell order is modified again to 1 lot and price is also changed to trailing stop level)
I don't need 2 qty now cause I am in the breakout trade.
5) If i get caught in false breakout, then after being stopped out, I am still in a trade with 1 lot (1 lot sold to cover my BUY trade, and I am short 1 lot now)
At this stage, I will put stop with 1 lot qty on the other end of the consolidation range (enter new buy order as stop loss for Short trade).
6) If I am stopped out second time, then take a break and come later. (If Buy stop order is triggerd )
If not, then ride the false breakout with trailing stops (Buy stoploss order is modified for new trailing price).

My breakout trades don't last for more then 1 or 4 bars.
I know, it may not be the best way to handle breakout trades but it works for me.

Hope that helps.
Happy Trading.

 

[HEM]

Re: Scapling Strategies

Laksh, the way I trade such cosolidation is
1) Place a buy stop limit order few point above the range (say for qty 1 lot) (using trigger price + limit price)
2) Place a sell stop limit order few points below the range (1lot)
At this stage both orders are in pending status
3) As soon as one of the leg is filled (say BUY is filled), I update the pending order and double the qty (my SELL order is for 2 lot now). This ensures that if the breakout is false and my
then I will be stopped out and at the same time participate in next move.
4) If breakout is success with my first entry, then I modify the pending order to 1 lot and start trailing as per my rule (Sell order is modified again to 1 lot and price is also changed to trailing stop level)
I don't need 2 qty now cause I am in the breakout trade.
5) If i get caught in false breakout, then after being stopped out, I am still in a trade with 1 lot (1 lot sold to cover my BUY trade, and I am short 1 lot now)
At this stage, I will put stop with 1 lot qty on the other end of the consolidation range (enter new buy order as stop loss for Short trade).
6) If I am stopped out second time, then take a break and come later. (If Buy stop order is triggerd )
If not, then ride the false breakout with trailing stops (Buy stoploss order is modified for new trailing price).

My breakout trades don't last for more then 1 or 4 bars.
I know, it may not be the best way to handle breakout trades but it works for me.

Hope that helps.
Happy Trading.

Excellent Writeup sir. :clapping::clapping:

 

[HEM]

Re: Scapling Strategies

Laksh, the way I trade such cosolidation is
1) Place a buy stop limit order few point above the range (say for qty 1 lot) (using trigger price + limit price)
2) Place a sell stop limit order few points below the range (1lot)
At this stage both orders are in pending status
3) As soon as one of the leg is filled (say BUY is filled), I update the pending order and double the qty (my SELL order is for 2 lot now). This ensures that if the breakout is false and my
then I will be stopped out and at the same time participate in next move.
4) If breakout is success with my first entry, then I modify the pending order to 1 lot and start trailing as per my rule (Sell order is modified again to 1 lot and price is also changed to trailing stop level)
I don't need 2 qty now cause I am in the breakout trade.
5) If i get caught in false breakout, then after being stopped out, I am still in a trade with 1 lot (1 lot sold to cover my BUY trade, and I am short 1 lot now)
At this stage, I will put stop with 1 lot qty on the other end of the consolidation range (enter new buy order as stop loss for Short trade).
6) If I am stopped out second time, then take a break and come later. (If Buy stop order is triggerd )
If not, then ride the false breakout with trailing stops (Buy stoploss order is modified for new trailing price).

My breakout trades don't last for more then 1 or 4 bars.
I know, it may not be the best way to handle breakout trades but it works for me.

Hope that helps.
Happy Trading.

AW, in what time frame you are trading with breakouts and brekdowns with this technic ?