Thursday, September 1, 2016

Scalp Trading the E-mini Futures Markets With Limit Orders

This video shows John Paul getting signals from the Trade Scalper. The Trade Scalper is both a course and an indicator for NinjaTrader. The method uses 1-min charts to find multiple trades across many types of markets. Each trade focuses on a small profit with a slightly larger stop. If you're not making profit, you are not always taking the greater stop. You're taught the rules on how to manage each trade. You fully learn how the strategy works, so the indicator is optional.

To prevent slippage normally associated with market orders, John Paul prefers to use Limit Orders. Limit orders are a "goal" for your desired fill price to be reached. Once filled, you can focus on managing the trade. Scalping trades generally go for a couple of ticks each. This one is a short, so he's looking to sell the market. Scalping is a more conservative style of trading because you're looking to get out quickly. The longer you stay in, the greater the chance for loss. News events should be avoided - too much volatility or too little can throw off any system. Also, the first 10 min. and final 20 min. of the E-mini (or your preferred market) should be treated with caution. Often, traders are getting their bearings or settling scores. This leads to greater unpredictability. A small way of confirming trades is to see if they are headed in a direction they've already been. Markets like to test previous levels. That's what happened here.

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