Scalping Strategies

[suchit_bhatia]

hey all,

a any scalpers out here?

any body who actually risks their capital on a one minute chart for NIFTY or cash or futures segment... just wanna knw the views n success rate of such successful scalpers out here.... coz m plannin to start scalping on nifty...the reason m askin is coz i have never traded in futures segment of indian stock market n dont knw how the intraday futures market wrk... m not interested to hold overnite positons... nd at present scalping seems to be the best trading technique in my mind... i have been practising scalping on FX market for more than 3 weeks now and the result is all positive...

was also wondering if anybody out here actually hedge their portfolios...

replies awaited...

P.S: just awaiting replies from ppl who have actually tried or tested scalping...or are in a process to develop scalping systems and strategies... inexperienced members in theis field plz do not tell me how risky it can be or post me links tellin me disadvantages of scalping...

 

[NOMINDTR]

Re: Scapling Strategies

Thanks for initiation Suchit.

Let us wait for people.

 

[oldnewbie12345]

Re: Scapling Strategies

scalping is an excellent way to make money, but at least for me, I cannot increase qty beyond a certain level.......

whereas intraday trading, like maybe 1 or 2 trades a day, I can commit better qty....

as for overnight holdings, its a strict no no for me.

 

[suchit_bhatia]

Re: Scapling Strategies

@ gsalvadi

thnx bro.. lets see how far we get in this thread...


@ oldnewbie

can u share ur scalping experience...


well i just spoke to a reputed fx trader who tried scalping in indian markets which unfortunately din work for him.. the reason was poor delivery of RT quotes to the terminal.. he says even the real time quotes are not real with the best of the service in india.. they are delayed and by the time u exit ur position, the trade is booked at a price different then wat u see n at the end of d trade u realise the profit booked was sufficient enuf only to pay d brokerage... how true is his sayin abt RT quotes? comments plz..

 

[Laksh]

Re: Scapling Strategies

Earlier trader111 had started a thread named Scalper's Forum where he had discussed scalping. There were some examples of the Indian market, though most charts were from foreign markets. You can look up that thread.

Laksh

 

[stumper]

Re: Scapling Strategies

hey all,

a any scalpers out here?

any body who actually risks their capital on a one minute chart for NIFTY or cash or futures segment... just wanna knw the views n success rate of such successful scalpers out here.... coz m plannin to start scalping on nifty...the reason m askin is coz i have never traded in futures segment of indian stock market n dont knw how the intraday futures market wrk... m not interested to hold overnite positons... nd at present scalping seems to be the best trading technique in my mind... i have been practising scalping on FX market for more than 3 weeks now and the result is all positive...

was also wondering if anybody out here actually hedge their portfolios...

replies awaited...

P.S: just awaiting replies from ppl who have actually tried or tested scalping...or are in a process to develop scalping systems and strategies... inexperienced members in theis field plz do not tell me how risky it can be or post me links tellin me disadvantages of scalping...

Hmmm , i do more on 5 mins charts. Typically do a range/chanell breakout strategy on stocks (no futures for me!)

 

[dayder]

Re: Scapling Strategies

hey all,

a any scalpers out here?

any body who actually risks their capital on a one minute chart for NIFTY or cash or futures segment... just wanna knw the views n success rate of such successful scalpers out here.... coz m plannin to start scalping on nifty...the reason m askin is coz i have never traded in futures segment of indian stock market n dont knw how the intraday futures market wrk... m not interested to hold overnite positons... nd at present scalping seems to be the best trading technique in my mind... i have been practising scalping on FX market for more than 3 weeks now and the result is all positive...

was also wondering if anybody out here actually hedge their portfolios...

replies awaited...

P.S: just awaiting replies from ppl who have actually tried or tested scalping...or are in a process to develop scalping systems and strategies... inexperienced members in theis field plz do not tell me how risky it can be or post me links tellin me disadvantages of scalping...

Yes, I do scalping in Mini-Nifty Futures only.

My strategy is :
I scalp based on one minute chart, ( 5 m and 15 m charts for conformation of trend), using Bollinger Band [ 20, 2 ] and RSI [ 13 ] overlaid by RSI [3].

Methodology :
If the candle is near the upper BB, I watch RSI, whether the cross-over is visible [3m going below 13m]. If so, I verify 5m and 15m chart for conformation, whether showing downwards move.

If the next candle is formed below the candle close to upper BB, I go short and wait till the next cross-over shows or the candle touches the lower BB and turns upwards. When the higher candle close to lower BB is noticed, I square off my position and take whatever the
point is gained. While scalping, you should be very fast in taking decisions based on the rules you adhere.

Some times, the candles touch the middle BB and take an upward move. Then I place a S/L at the high of the first candle touching the upper BB [ based on which I shorted] + a filter of 2 or 3 points. If it raises and S/L is triggered, ofcourse, I loose some points.

If the candle is near the lower BB, on watching the reverse of the above method, I go long and scalp when it touches the upper BB and turns down.

This way, I scalp as and when things are in my favour.

Unless otherwise something changes the normal trading, this method works perfectly and gainfully. I'm not counting how much I am paying towards brokerage and tax. I get satisfied with what I get after deducting the above.

Wishing you happy and profitable trading,
dayder.

 

[NOMINDTR]

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.

 

[AW10]

Re: Scapling Strategies

I was thinking that scalp traders
- execute many trades in a day (in few 10s atleast),
- they have small losses, and most of the trades are breakever to small profit in few points,
- use orderflow and price actoin to find the opportunities.. rather then technical indicators
- use tick chart, time & sales data etc as tools
- they thrive on the expectancy of their system and hardly have any loosing day

I might be wrong in carrying the impression of what is called scalp trading (certianly it is not my cup of tea or pint of beer)..

It seems that what daydr / gsalvadi has mentioned is short term daytrading where timeframe is 1m or 5m chart.

Happy Trading / Scalping.

 

[NOMINDTR]

Re: Scapling Strategies

It seems that what daydr / gsalvadi has mentioned is short term daytrading where timeframe is 1m or 5m chart.

You are perfect about scalpers as far as the literatures concern

I fail to see a 10 second trade when I was busy in altering my trailing stops, not considering pull backs, pivots...could be safely called scalping. IMO, scalpers do lot of trades ( in fact 10 trades is nothing for scalpers), just because their profits are small. Secondly, scalpers have an advantage of not doing home work, not using technical indicators...they are said to be mere masters of order flow. Thought these are on game, Would it be a short-term day trading???? May be safely called momentum trading.

Besides these things, traders don't name them. It is the job of authors

EDIT : It is a fact that every trader scalps and gambles at times, unknowingly at some point