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jperl

Trading with Market Statistics IX. Scalping

By jperl, in Market Profile

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BlowFish    10

BlowFish
Posted
Specific to scalping I have found that fading the trend at either 2nd SD to be most effective - can anyone confirm or refute this claim?

 

I think I am right in saying "provided the skew is close to zero and the distribution looks symmetric".

 

Looking at larger data sets to provide context for the scalps looks promising to me too, similar to the ideas Jerry presents in the HUP's thread. After all on a 15second chart todays VWAP SD's and PVP are essentially HUP's.

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tradepro    10

tradepro
Posted

Hi Jerry,

 

I started scalping using JPM. I went in at random times using your example of 15 second charts and a 15 minute time frame, then repeated the process. It was successful.

7 out of 10 were winners. I was using limit orders to capture the ecn credits using the SD areas to place my trades. I then switched to a 30 second chart but this time I added Stochastics, looking for divergence signals for entries around the SD's.

 

4 out of 5 were successful. I cut my trades in half because the time frame was higher so naturally my risk was higher.Do you agree using an indicator such as Stoch's to help confirm potential entries at the SD areas?

 

By the way thank you so much for your threads. It has improved my trading.

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jperl    11

jperl
Posted

 

4 out of 5 were successful. I cut my trades in half because the time frame was higher so naturally my risk was higher.Do you agree using an indicator such as Stoch's to help confirm potential entries at the SD areas?

 

I can't comment on that tradepro, since I don't use Stoch's. However, since you find it useful for your entries at the SD's, by all means keep using it. I think however in the long run you will discover that simply watching the price action will give you the same information as the Stoch's does.

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djangho    10

djangho
Posted (edited)

Jerry, thank you for your Market Statistic serie.

 

I wanted to know if algorithmic High Frequency Trading had affected the strategies you describe in this serie?

Edited by djangho

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jperl    11

jperl
Posted
JPerl, thank you for your Market Statistic serie.

 

I wanted to know if algorithmic High Frequency Trading had affected the strategies you describe in this serie?

 

The statistics of the price action tell you nothing about the source of the price action including High Frequency Trading. That's the beauty of the statistical data. You don't really need to know its source, only what it looks like.

What trading strategy you use with the statistics is of course up to you. I've described several in the threads. There are many more.

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scanshift    10

scanshift
Posted

Jerry, thanks for a wealth of clearly written info that will make a difference in even how an experienced trader analyzes the markets. I have millions of contracts under my belt (between being a floor broker, floor trader and now an upstairs trader) and your tutorials have given me much to think about that I never knew. I would like to know your thoughts about trying to either integrate or modify the scanshift range extension rectangle (RER) to incorporate some of your strategies. That could be quite a potent combination..

 

Thanks

Fane

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jperl    11

jperl
Posted
Jerry, thanks for a wealth of clearly written info that will make a difference in even how an experienced trader analyzes the markets. I have millions of contracts under my belt (between being a floor broker, floor trader and now an upstairs trader) and your tutorials have given me much to think about that I never knew. I would like to know your thoughts about trying to either integrate or modify the scanshift range extension rectangle (RER) to incorporate some of your strategies. That could be quite a potent combination..

 

Thanks

Fane

 

What I have presented is now public information. You may use it in any way you like.

The only thing I ask is if you do use it in a product, to reference the source here at Traders Laboratory.

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