futurescalper

Micro scalping is my specialty. The first problem is that Futures traders are overly committed at a given price and, therefore, stop out frequently, because you will be wrong a proportion of the time, and any market will move against you. In theory, your approach sounds good, but it fails miserably because of the inevitability of Stop Losses. This is not obvious, but once you understand it, you can develop a Survivable and Profitable method of trading, but you have to reduce your Risk and move into a trading instrument which allows you to greatly reduce the Risk which leads to Stop Outs. The only solution to making money in trading is to Stop Out rarely. The only way to do that is to have the ability to distribute your risk over a wide range of pricing, and Futures traders do not have the capital to do this. Solution: In my case, move from Euro futures to EUR/USD Forex with an ECN brokerage, which is MB Trading. With specialized software, and Forex precision I can spread my risk of 1 Euro FX contract widely, in increments of 1/10th or even 1/100th of a Euro FX contract commitment. I can sustain price movements against me of 20, 30, 40 ticks or pips without breaking a sweat. And I do not have to pay commission, but I actually EARN CREDIT for 95% of my Entries and Exits through adding liquidity to their ECN. Result: I almost never have to Stop Out with a loss. If I do have to "reduce" my position, that is the same thing as a Partial Stop, and affects only a small proportion of my position. In the meantime, any Entry which I make that goes into Profit, is immediately profit-taken and that residual income offsets my open position, which may be underwater. Eventually these partial profits outweigh any drawdowns and Net profit is positive. This is the only Survivable way to trade, and it defines a "Risk Envelope" within which you are comfortable, which MUST be planned to permit you comfortably to sustain a WIDE range of pricing against you, which will occur. It is at these times of "price adversity" that you must AVOID Stop Losses. HyperScalper

I'm a U.S. client. Well, you can read why they are using the term EXN. I think it's because of certain NFA rules. Anyway, I use their "Pay for Limits" program, which gives approx. 0.5 ticks CREDIT, round trip, per trade (1.95 per $100k base currency); but only if you are "resting" on their ECN and are "hit" by a counterparty. By doing that, you have "added liquidity" and get the credit. The Counterparty is paying 2.95 per $100k base currency commission or "routing fee" per side, instead of me. (Most of the time.) The offer a "commission free" program, but where the commission is built into the spread. They give clients a choice which one they'd rather use. In the "Pay for Limits" program, you have to "earn" your Credit, by placing resting orders on their ECN accurately. No, I don't use their platform, except as a backup. My custom software is HyperScalper, and it is extremely customized for this type of scalping. We can place orders relative to several precise reference prices: Simple Bid/Ask, MidPoint, Significant Bid/Ask, and set an offset in Tenths of a Pip from that reference so that we "land" in the Bid/Ask spread just where we want to be, so we can get "hit" and claim the credit for most trades. I almost never use marketable orders, because of the approx. 0.8 tick commission. I can adjust my live order in Tenths of a tick so I am just under the Ask to Buy, and most likely to get "hit" to claim the credit, which offsets the slightly higher price I am bidding. No point in bidding down near the Bid, where it is unlikely to get filled. Of course, this is manual discretionary trading, but there are some features for semi-automatic mode. It isn't an EA, and not designed to run unattended, but caters to a wide range of trading styles including nibbling, which is micro-scalping. Hope this helps !! Good Trading ! HyperScalper

Our requirement was frequent micro-scalping, literally maybe a 50 or a hundred open micro-positions, and then LIFO closing of these positions. This facilitates cost basis averaging, etc. Depending upon how quickly, or how accurately, you need to place your orders their executions may or may not be good enough. Put pressure on them to make their implementation better. There is no excuse for 10-20 second execution times, etc. Using their API, we get executions 500 msecs round trip end to end. This is not fast by some standards, but the consistency makes it a great trading environment. As to whether they are a real ECN, they are now calling themselves an EXN. To me, trading with precision scalping, it sure feels exactly like a real ECN. And they offer Credits for adding liquidity on their ECN. One thing interesting about their EUR/USD at least, where I have direct experience. What I would call "retail liquidity" (using marketable orders, and paying commission) the liquity and execution times are very fast. However, what I call "wholesale liquidity" where you rest on their ECN and compete with Market Maker, it is rare that somebody comes along and hits your resting order, so that liquidity is quite low. If you are Buying, and move your order into the Upper Half of the spread, you can get it resting, and get hit (thus making the Credit). The danger is that you hit a counterparty, and then you pay commission. But their commissions (when you have to pay them) are only 2.95 per $100k base currency per side, so maybe 0.8 ticks is lost in commission. That's great pricing ! HyperScalper

In creating a Forex micro scalping platform we began with MT4 and used EA's to do socket comms, etc. In the process we had very inconsistent and very slow execution, "hangs", etc. In my view, MB Trading provides MetaTrader more or less as a "necessary evil", since MT4 is so popular. The implementation (about a year ago) left much to be desired. My speculation is a bunch of scripts on some unix boxes at their "bridge provider" resulted in very slow and inconsistent results. So we switched to their proprietary COM API, wrapped up with C# .Net, which was a major hassle. The upside of that was that we had access to the live Euro DOM for analysis purposes, and order entry times dropped to very consistent sub-second executions, every time. I learned that MetaTrader implementations, particular in the context of ECN's are certainly not all the same and was not able to achieve my goals through their MT4 implementation. On the other hand, by integrating with their own API, which was a huge effort, we are in a much better position for Eur/Usd scalping. MB Trading is a great service, and their Forex is second to none, but most people equate Forex with MetaTrader and it was in that area where I was disappointed. Just my experience. HyperScalper.

I have no particular relation to MB Trading, but this is what makes them unique: 1) Very low funding requirements $400 U.S. 2) No penalty for small lots whatsoever, down to micro lots. 3) All Credits, and commissions are proportionally calculated. 4) Marketable orders incur a routing fee (commission) which is reasonable. 5) Traders with advanced order precision earn Credit for placing limits on their ECN, which add liquidity. (Must be resting on the ECN, taken by a counterparty) My trading style is Nibbling using HyperScalper and many hundreds of small lot trades can be done per day, with Credits (provided orders are placed precisely on their ECN). I trade only EUR/USD Forex. Because there is no penalty for small lot sizes, positions can be built up and profits taken incrementally, which is why I call it Nibbling. I am able to get credit for 90% of transactions, which means no commission, and a Net Credit but this requires software which is able to place limit orders with precision. This is an ideal environment for Nibbling or scalping, provided you have software tools which enable you to trade precisely. This is a fair and transparent ECN. Your trades appear on the Depth of Market, along with all other market participants.

Yes, I know a lot about MB Trading Forex, PM me and we can discuss. My own work is focused upon High Frequency "Nibbling" with continuous LIFO profit-taking and continuous cost averaging over a wide range of pricing. So, no stop outs (almost never). I make Net Credits most of the time, so mostly don't have to pay any net commish. But precision Order Entry is the key to that. Absolutely we learn something new every day, Good Trading ! HyperScalper

As regards Hedging, I'm not an expert here, but having a long and short position in the same account makes no sense to me anyway. And that practice has been banned, I believe by NFA. However, as a matter of fact, with 2 accounts, you could certainly have a long position in one, and a short position in another, on the same Forex pair symbol. I know of a guy who specifically had 2 accounts at MB Trading for just this purpose. I guess that would accomplish the purpose of hedging... ? But when we trade Forex on a modern ECN, we are really getting outside of the whole "Dealing Desk" concept, so the "order" of the deals, in the sense of MetaTrader positions, becomes irrelevant. Anyway, my comments and experience with the "MetaTrader world" are limited. I've used MB Trading's MetaTrader briefly (but performance was terrible) and so I know that LIFO execution sequences are unrestricted. The last "deal" can be closed "first". But "modern" trading on an ECN doesn't have the concept of "deals" anymore, and so Forex has finally come into the modern era with ECN's such as MB Trading's offering. My trading is called "Nibbling" and consists of hundreds of small transactions, mostly on a "LIFO" basis using Cost Basis Averaging over a wide price range in Euro. HyperScalper

Thanks for pointing that out. I really don't know about Hedging, and I should not have been making that statement, so I apologize. However, the "FIFO" issue is an accounting issue, and is handled at their back office. This is not an issue easily explained, but basically, using their MetaTrader (which I don't use), you are able to do LIFO trading "last in, first out". Normally, FIFO restrictions would force you to close the First In, as the First Out. But all of this evaporates, because not only do they take care of that in the back office, when you are not talking about "deals" in MetaTrader, which are no longer "deals" because they are an ECN. You can buy or sell, at least within a single Forex symbol in any amount and in any order you wish. I don't use the MetaTrader concept of "deals" but simply Buy and Sell EUR/USD Forex lots. By doing this, I am able to pull my Price Break Even point, or Cost Basis in my favor, and "Nibble" away at the market by taking Partial profits, so that when any "entry" comes into profit, I can close it out. This, incidentally would be considered "LIFO" last in, first out, from the perspective of "deals". My trading style is strictly LIFO, so I do know that FIFO restrictions, at least within a single Forex pair, are eliminated at MB Trading. Basically, using their ECN (aka EXN) it's just like trading on a "real" exchange, like Globex. You just buy and sell, in an unrestricted fashion. So, ultimately, trading is just Average Buy price vs Average Sell price minus commission, and even commission can be mitigated at MB Trading, or eliminated, by their "Pay for Limits" program. Hope this helps !!

I wonder whether you're talking about their MetaTrader implementation. Originally, in developing my software, we desperately tried to use MetaTrader EA's. But the performance was not only horrible, but inconsistent. Waiting like 10 seconds for fills. So, reluctantly, we moved over to their proprietary API. Now Forex fills are roughly 500 milliseconds, start to finish, and extremely consistent performance. So, their MetaTrader 4 implementation is/was just awful. But by using their API, we can analyze their realtime ECN DOM, so we get way more information and control. I do literally hundreds of scalps per day, and performance is fabulous.

This is almost certainly a scam arrangement. But I can tell you that trading others' money is so much more Stressful than trading your own money. Especially if the account holder is a Micro-Manager type of personality. Personally, I find it much easier to take risk, and take responsibility if it's my own money. You must be able to take Risk in order to Profit. And if you are hamstrung by somebody looking at your results every single day, you're unlikely to do well at all. Even if you trading for a good friend, s/he's always looking over your shoulder... Trade your own funds if at all possible.

Hi, I'm sort of a vendor But this is not to sell you anything. But anyway, my advice is to choose: 1) an ECN brokerage, I'd strongly suggest MB Trading, where 2) you don't get ripped off, and 3) you can trade 1/100th Forex standard lot sizes with no penalties 4) and fair, proportional commissions 5) with small $400 minimum starting funding requirements 6) live interbank pricing and fast market data That way, you can start inexpensively, and by keeping your commitments low, survive long enough to make it through your learning curve. Biggest issue is being overcommitted in a position, and having to stop out excessively. Plan for the fact that a market will move against you, and spread out your entries in anticipation that this will happen frequently. Ideally you should formulate a strategy which minimizes or eliminates the need for stops, through acquiring your position over a wide range of pricing. To keep it simple, don't buy everything at one price. Buy at staggered prices, portions of your desired position, and sell at staggered profit takes, etc. Takes a bit of keeping track of your trades, but learn a little about cost basis averaging, and how staggering your entries and exits can work to your advantage. Hope this helps !!

I just noticed this thread. I have experience with precision scalping using MB Trading in the EUR/USD Forex market. You are correct. MB Trading is the best choice. What's wrong with MB Trading? Nothing. However, I've heard their support channels and policies might be a bit "byzantine" in the sense that sometimes things might be done simpler. But is that a criticism? I don't think so. What matters for me is that MB Trading implements a true ECN which tolerates unrestricted scalping, pays me for adding liquidity (so I pay very little commission) and is rock solid. For my needs, which are hundreds of precision scalp micro trades per day, there is no better deal, especially for the small Forex trader. Then you need the software to precisely use their ECN, and their own trading platforms are somewhat "ho hum"... Best to use a specialized platform, especially for scalping and getting commission credits, rather than paying commission.

I trade with MB Trading's non-MetaTrader Forex in EUR/USD exclusively, using HyperScalper. MB Trading is a pure ECN with the following characteristics: 1) Interbank pricing 2) No penalty for small lot size 3) Pay for Limits which gives you a Credit when you add liquidity, which 4) Result in No Commission, when you place order carefully. They pay a credit equal to 1.95 base currency per $100k forex lot, or any proportional lot size down to the micro lot. For example, in current EURO price, that is 1.95 times 1.3, which is about $2.53 per Forex standard lot ($100,000) PER SIDE. So, a Forex standard lot, purchased wholesale, buy BID and sell ASK has a Gross profit of $10 for 1 tick, Plus the credit of $2.53 per side, so that's NET approx $15 profit, and the market didn't move at all... (theoretically, if you wait with resting limits to get your fills). If you use a marketable order, and you "hit" a counterparty, then you pay only 2.95 in base currency per side fully proportional commission. The counterparty gets the liquidity credit in that case, so you want to use Limit orders carefully on their ECN. Their fees and credits are here: MB Trading - Pricing No dealing desk, no restrictions on scalping, and no FIFO restrictions on hedging. Fill times roughly 0.5 seconds round trip. Anyway, this is Modern Transparent ECN Forex, and it's a great trading environment. Just FYI...