Scalping Strategies

[shivamyogi]

Re: Scapling Strategies

gr8 work sir...thanks. Need yr advice more on NR7.

 

[jigar247]

hi friends,
can anyone pls clear my doubt reguarding scalping, i am confused about its concept ,

if for example if i purchase a share of Rs100 and sell it at Rs 100.05 so is it scalping??
so how many maximum number of transaction can i do in one day pls specify the figure 100,150....

i have heard that scalping is illegal...is it true in this case bcos the wikipedia definition says "Scalping, when used in reference to trading in securities, commodities and foreign exchange, may refer to (i) a fraudulent form of market manipulation or (ii) a legitimate method of arbitrage of small price gaps created by the bid-ask spread.
thanks

 

[columbus]

hi friends,
can anyone pls clear my doubt reguarding scalping, i am confused about its concept ,

if for example if i purchase a share of Rs100 and sell it at Rs 100.05 so is it scalping??
so how many maximum number of transaction can i do in one day pls specify the figure 100,150....

i have heard that scalping is illegal...is it true in this case bcos the wikipedia definition says "Scalping, when used in reference to trading in securities, commodities and foreign exchange, may refer to (i) a fraudulent form of market manipulation or (ii) a legitimate method of arbitrage of small price gaps created by the bid-ask spread.
thanks

Scalping is not at all ILLEGAL. Scalpers look for small
gains manytimes in the day.As long as money is there in your
account you can buy/sell ,no bar on that.

 

[veekay304]

Re: Scapling Strategies

I have recently decided to try out scalping and i found a few challenges that needed to be resolved before i could venture into it.

The first thing a scalper needs is low break even cost and speed of execution / modification. I had opened an account wt Reliance to reduce the cost but their terminal isnt suited for scalping. My regular account is with Indiabulls and they offer me 0.02% as brokerage which works to 2.75 as breakeven in nifty inclusive of taxes. Their trading terminal (pib) is suitable for scalping but still i feel the brokerage is on the expensive side (for scalping). On recommendation of a scalper, I have recently opened an account with r k global and their break even in nifty inclusive of taxes works out to 1.45 and they use odin as their terminal which is fast and reliable.

Next step is to ensure that i get RT data of nifty futures in amibroker. I use TDI as my Rt data source and i get to see only the spot prices that too with a lag of 5-10 sec sometimes. Since the futures premium fluctuates wildly, trading futures based on spot is not ideal. Again, he helped on that font too.

Next step is methodology. Thats basically a work in progress but so far trend break-out of rsi-21 , cross of rsi(5) and 7 ema of rsi(5) and cci-trend break has been short listed as possible entry triggers. Break out from a price range looks appealing as well.

Target is set for 6.5 points (1.5 as brokerage and 5 Rs as profit) . No of Lots :4. Thats 20 points in one trade. No of trades per day : 10 (initially)

There wont be a stop loss as the duration of the trade is supposed to last for max 2-3 min. After a call is executed, i place the exit target orders immediately. If the target is not hit within a few min...i exit.

The one thing i realized is that scalpers are excellent chart readers. They can sense order flow and they trade very fast. Its hard and very difficult to master. Its a different style of trading all together and i am only eager to learn by experience.

I know Linkon, this is an old post.. but I can't stop appreciating you for the precise explanations/logics..:clapping::clapping:

VK

 

[jigar247]

thanks sir for the advice....
i wanted to know which software is available that is suited for scalping strategy that can provide ONE CLICK ENTRY EXIT position and can it can be connected to rk global odin diet .....

 

[veekay304]

thanks sir for the advice....
i wanted to know which software is available that is suited for scalping strategy that can provide ONE CLICK ENTRY EXIT position and can it can be connected to rk global odin diet .....

there is no special software available specifically for scalping... Amiborker/Metastock can help you to analyse data. Your RK Global ODIN Diet is faster enough for order execution.

Key is recognising and fastly executing the opportunity..

VK

 

[Sudhakar_Ahire]

Re: Scapling Strategies

What is Scapling , How it works@ 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..[/QUOTE]

 

[sumit.agarwal]

Scalping is not at all ILLEGAL. Scalpers look for small
gains manytimes in the day.As long as money is there in your
account you can buy/sell ,no bar on that.

jobbers too scalp, manipulating.

 

[dineshknp]

hi, so with boll(s,9,2.00) on 2 min tf when we should enter and when exit? pls lay down the rules

 

[veekay304]

hi, so with boll(s,9,2.00) on 2 min tf when we should enter and when exit? pls lay down the rules

You may get very good guidance on another thread (link given below) for trading using BB.

http://www.traderji.com/day-trading/27421-bollingerbands.html

I think, BB should not be used alone.. use BB as a supporting indicator..

VK