Scalping. Tick chart on a chart. - page 4

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serler2:

Trading on ticks, scalping leads to a high number of open trades. 3-5-10-20 a day.

Now imagine you have a $1000 account and trade 0.1 lot on the eurik.

To open 1 trade, you need to pay the broker a spread of 10 pips (on average). - (in 5th sign).

1$ - 1 deal.

10 deals per day - 10$.

250 working days per year - $2,500 per year. This is the sum you have to give to broker for a year, what he would just let you trade. I.e. 250% of initial deposit. How much then do you have to earn per year?

In connection with this begs the conclusion of expediency and effectiveness of such an approach.

This is a style of pipsing, trades are closed with a profit and new ones are opened, but if a deal goes in the red, nothing else is opened (or a few folds) until it is in the black.
 
zoritch:

and why not...? in four hours (well trades of twenty... gone to the cottage to water the beds...:-)) 55 pips profit, the spread is already there... What's the catch...?

I mean, a sideways trend is even more profitable...

The catch is that you feed your broker well with such strategies.

The spread is already included in a positive trade.

And in a negative trade it increases the loss.

With your strategy, can you beat the profitability of 250% p.a.?

The problem with scalping is that the efficiency of the strategy is average and the costs of trading are very high.

Would you trade on a strategy that makes $1000 in a month and loses $950 and you're left with $50 in profit. It's walking on a razor's edge.

 
Tantrik:
If you start trading with big lots, you will get profit when the first good trend arrives, but this is a scalping style.

In order to make money, you have to enter with small lots. So as to have something to cover later on. The profitability of the strategy will be low.

You start trading with big lots, you will break even at the first good trend.

 
serler2:

In order to make money, you have to enter with small lots. So as to have something to cover later on. Profitability of the strategy will be low.

If you start trading with big lots, you will lose at the first good trend.

Lots are the same, and while one order is in a drawdown - trading continues to bring the account to an overall plus (and eventually you can lock in a loss). And the profitability of such strategies is the highest - who knows how (practically all movement is taken - as if the price movement of large TFs is reversed)
 
serler2:

In order to make money, you have to enter with small lots. So as to have something to cover later on. Profitability of the strategy will be low.

If you start trading with big lots, you will lose at the first good trend.

as reshetov said it's better to open one order than several... i agree...

But his open order may earn 20 pips, i may earn 120 pips on the same movement...

I will gladly pay the spread....and five, six pips counts as a pip...?

 
serler2:

In order to make money, you have to enter with small lots. So as to have something to cover later on. The profitability of the strategy will be low.

If you start trading with big lots, you will lose at the first good trend.

The strategy does not reach the trends - everything closes early, even if it's positive or negative.
 
serler2:

The catch is that you are feeding your broker well with such strategies.



You can't feed him more than the size of the deposit, so there is no difference in the strategy used by the trader for the broker, some lose deposits faster and some slower.)
 
sanyooooook:
So there is no difference in the strategy used by a trader for a brokerage company, some lose deposits faster and others slower.)
as someone pointed out... everybody does it, just many traders don't have time to live for it... :-)))
 
zoritch:

why is the profitability low...? as reshetov said it is better to open one order than several... i agree...

But his open order will earn for example 20 pips, i will earn 120 pips during the same time on the move...

I will gladly pay the spread ... and five, six pips counts as a pips?

Yes, you will definitely earn more. You'll earn more.

But you'll also lose more in the event of a sharp counter-movement.

In order to work in the TS stably and not to get lost you need to trade small lots, with small risk and respectively low profitability.

Big lots - higher risk and high yield.

And how do you know if the run is over?

 
sanyooooook:
I don't think so, there is no difference in trader's strategy for brokerage companies, some lose deposits faster and some slower.)

If the goal is to drain the deposit, then you are absolutely right!

It's not the brokerage companies that lose the deposit, it's the people.

When you earn money, you don't say that brokerage companies helped you.) It's the same with losing money!

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