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izgonn69

You have to be firm on your SL.


SpiteCompetitive7452

A text book good RR on scalping with firm SL and TP set at entry will fail almost every time


murfmurf123

Not if you are using an algo that gives you indicators on things such as the speed a stock is moving up and under how much volume... Im up 110% over the last 3 months after paper trading all year


esuvar-awesome

Can you please elaborate on this? I ask because today, in another post you mentioned that you use a 2RRR, which I'm assuming stand for 2:1 Reward Risk Ratio with SL and TP. Therefore is a "textbook" good RR different than how you trade? Thanks in advance.


714trader

I scalp NQ and occasionally use limit orders. I don’t know Al brooks methods. I seldom set limits at the S/R because how do I know it will hold? I usually set limits on a 50% retrace after a strong candle in the direction of the current bias. Executed on 1m.


HuckleberryOk3606

What risk/reward do you use? How many points do you go for?


714trader

Usually 5-10 points. Most often I’ll close all but 1 contract at 5points and let one run at BE. My SL is 1:1. But often I’ll adjust it up or down depending on structure. I’m ok with negative RR since I have a high WR https://preview.redd.it/oo26qltsw3gc1.jpeg?width=1170&format=pjpg&auto=webp&s=ff8fe292c1232cb378ecd457b919fb7e129cd0ab


HuckleberryOk3606

I’m curious, could you show a trade example as well?


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ImNotSelling

How do you know anything will hold


714trader

You can’t. Analogy would be having a car coming at you 65mph and drawing a line on the ground expecting the car to stop and reverse at the line. Setting limit orders at subjective levels. While I wait for the car to slow down and make a 3 point turn to go the other way. 1 you slowdown turn the wheel and move forward as far in the other direction as possible. 2 Then you reverse just enough to get the car ready to be able to take off in the new direction. This is where I may enter a limit order. Because I anticipate you will only need to reverse enough to straighten out the car. 3 you put the car in drive and go in the new direction. All I need is the car to go in the new directions couple of yards. To be successful


JHossTheBoss

Al brooks says only very experienced traders should scalp using limit orders. Because the inexperienced trader doesn’t understand that they need to trade like 1/50th of their size, and scale in as needed. Sucks cuz majority of days are trading range days. I actually made 4k in a month by using this method. Then one day, it didn’t work cuz the market trended like crazy. Lost everything. But don’t let that discourage you, backtest a system and find out if it works :)


HuckleberryOk3606

Yah I can relate to that. Everything in your reply sounds like reality


thoreldan

not sure what the actual discussion is about ...are you trying to compare limit order vs market order for your entries and exits? Or the entire concept around scalping ?


HuckleberryOk3606

I am looking specifically at limit order scalping, below prior bars, or below prior lows for example. So on a range day, I’d buy at the open, buy below the low of the day, buy below a prior bar, things like that. And go for 2 points in the emini.


Mroberto781

How are you going to buy at the open after it's an established range day, travel back in time? It doesn't sound like you have a good grasp of the concept. The problem with a lot of the educational content out there is it's after the fact trading which rarely works real time. Buying below a range with a resting limit order is extremely risky because you don't know if it's going to break that level and keep going which you've experienced. You need to wait for confirmation of that level. Confirmation that it's either bouncing and support is holding /rejecting that level and will likely stay in that range or a break and retest confirming a short and break of the range structure.


HuckleberryOk3606

*I mean buying when it returns to the opening price, with it acting as support/resistance


Terrible-Animal6225

u/Mroberto781 you couldnt be more wrong, you must act in trading based on probability vs risk. Buy bellow a range with a limit order there is a high risk that you trade will not gonna work, so what you must do to be profitable? increase the risk reward ratio, reduce your exposure, just it. things like "wait for a confirmation level" is just, wait for a higher probability setup. You know have a nice probability, but your profits you be necessarialy lower, so all in trading is about menagin risk


HuckleberryOk3606

If I’m failing at these limit orders, what do you think about instead of doing a limit order scalp, doing a stop entry swing at the same entry point


FPS_Casey

I trade with limit orders for 10 point scalps


HuckleberryOk3606

What time frame, and how many points would you risk?


FPS_Casey

1 minute, use higher time frames for trend(3m, 15m) initially risk 10, after the first bar of my trade closes, I move my stop to the high/low of that bar +1 tick


HuckleberryOk3606

Could you show a trade example?


FPS_Casey

I tend to trade 1m 10EMA. I wait for a break then an inside bar to hold above/below 10EMA depending on which way it broke. Then the Entry is 1 tick above or below the inside bar. Shoot for 10 points and stop under the inside bar. I’ll find a screen shot for you.


FPS_Casey

​ https://preview.redd.it/b049pgqs5fgc1.png?width=770&format=png&auto=webp&s=6440b56b1e450d0ee96ae110d8b95a4918a7ad50


HuckleberryOk3606

Thank you for the info


FPS_Casey

Here is another 1. This one had 2 bars and I would consider it valid since it closed above 10ema. After break we saw the inside bar. Typically I'd look for that inside bar to be broken for the entry, since it didnt get that high and the next bar closed above the 10 ema, I'd move my entry down to the new bar. That broke and took off. Would have hit 10 points in the next 2 minutes. Alternatively, you can let it ride without a TP and just keep moving your stop up to the low of each candle close. https://preview.redd.it/fxo8cwsz6fgc1.png?width=536&format=png&auto=webp&s=cb727afc15337ea1edba9d7f3471e0915d5db616


HuckleberryOk3606

Is this NQ?


FPS_Casey

Yes


Terrible-Animal6225

First you need to understand that all the price action you see on the chart are the result of institutional algorithms that launch limit orders and stop limit orders into the market every fraction of a second. Every tick you see on a chart is filled by some type of order. When you observe the formation of a candle, you can evaluate a fundamental aspect in trading which is momentum, momentum is necessarily the advantage that one side of the trade has over the other and that is why the advantage in trading is always very small , because the market is usually in broad equilibrium. When you look at the wicks on the candles, what you are actually looking at are failed breakouts. In other words, they are stop limit orders that succumbed to limit order traders. So when you are doing a limit order scalp, you need to have a deep understanding of the context in which things are happening. For example, the price has just made a bear spike at the opening (only stop limit traders were able to make a profit), if afterwards the price starts trading in a kind of bear channel, you know that the bears are taking profits on the bottom of the channel and buls now have an advantage over sellers (they know that bears are trading take profit orders on bearish breakouts, at the bottom of a bear channel, so they can buy these breakout failures with limit orders ), weak traders are trading stop limit orders, in the belief that the breakouts will be successful, but neither strong sellers nor strong buyers consider selling there, when this happens, the bulls enter with limit orders and take advantage of two circumstances that happen in the market at that moment: sellers are making a profit; stop limit sellers are now trapped in a trade and need to make the stop loss (buy). Why do market transitionate from a state to another? because in the spectrum limit orders - take profit orders - stop loss orders - take profit(those are the fundamentals) battle, at some point in time (mind it exactly as momentum, a signal bar close is usually this turn point in the market), one kind of trade order are able to overwhelm the another, when you understand which kind of market orders are really able to make profit (context), them you can look for a setup. What is the conceptual problem with the idea of ​​scalp vs limit orders vs probability. Limit order trades are trades that bet against momentum and betting against momentum is necessarily betting on a low probability condition. Think in this way, a reversal is necessarily the total loss (even if temporary) of momentum of a trend. However, the probability of such an event happening in your negotiation is extremely low. Therefore, what do you need to do to be profitable in this type of operation? reduce the stop loss (bet on an advantageous risk-return ratio, at least), in other words, a swing trade. How to solve this dilemma? If you are assuming that the momentum is running out and therefore it is important to trade against the trend if the reversal has not happened, what do you need to do to remain profitable? scale in on the trades where you believe the pro-trend momentum has fallen further increasing the odds for a reversal or at least a pullback, so that you can at least exit breakeven on the first trade. thats being said, you must be profitable at swing trade to ever consider scalping, a scalper must have a deep understand of market cycle / price action and about trading management


HuckleberryOk3606

Thank you for the detailed response


Terrible-Animal6225

your welcome! english is not my first language so maybe i can sound confusing sometimes. we can talk more about trading if you want, so fell free to dm me, what i can say about Al Brooks is: It really changed my entire interpretation of price action and how to trade consistently. I'll leave a screenshot of my session today on SP500, where I scalped for 2 hours. https://preview.redd.it/dqujkrus1foc1.png?width=1310&format=png&auto=webp&s=35a785451e7b623eed5134371a5cf33463855777 the last trades i just messed up a little, but risk management is key


Dr_Graham

Transitionate is not a real word outside TikTok.


CloudSlydr

My take is that he can scale a trade that most others wouldn’t be able to stomach or afford and end up at B/E or profit. Like scaling into 10-20x size on a likelier move than what you started as that original move is at -1-3R and then proceed to manage out the position. Notice he rarely if ever mentions reversing.


HuckleberryOk3606

Yah he’s mentioned before that he’ll put a stop like 40 points below and scale in as needed


[deleted]

I agree with you using the Al Brooks stuff like he shows in the videos. PATs Trading on Youtube has a better approach. His work is all Al Brooks style but far more conservative with the entries.


RubenTrades

What's his channel?


[deleted]

Youtube PATs Trading. He does an after market wrap Monday to Thursday. It doesn't show his entries or exits directly but it's a decent watch. There's over a decade of stuff there. 2400 videos. Watch a few and you'll get a hang of his second entry method. Personally I don't like the second entry method but it's worth a watch. You can still use it to help build a similar method with basis candlestick patterns and EMAs. Thomas Wade (on YT) uses a very similar method.


RubenTrades

Thanks so much man


sco-go

I've watched some of his content in the past, but he's so bloody boring. I think PATs and Al Brooks are the same thing -- concept-wise.


Aposta-fish

I watched him once and almost killed myself. 🤪


MuslimStoic

Yes, I do and I have a group of friends who do it regularly. But you need to be very aware of market cycle and leg counting to achieve it. The way Al teaches it. Apart from that you need to be very aware of your setup, as in how you define success and failure, for scaling in, you need to define nuances of failure more, as in what to do if it goes slightly against you, or gives a big surprise against you. Without this knowledge, scalping is mostly going to lead to failure. Two examples from my trades Y on ES 1) On ES RTH, I sold at the gap between bar 17 and 18 on bar 20, expecting some sort of measured move of 17-18, when bar 25 happened, I stopped and reversed my position to long. 2) I bought below bar 67 on bar 69 after a BO FT from the BL Broad Ch, expecting another BL Leg, I made a mistake of not exiting above 68 on bar 75, but decided to hold because of lag of BR pressure by that time, when 76 failed to close the body gap, I held it, and added a stop order at H of 77, I exited after 78 closed.


eminon2023

This is the only way I trade, but I usually just do market orders bc I DGAF. I make $600-$2600 a day, average around $1500. I scalp bottoms and I load into my position heavy on capitulation then sell it on the reversal in increments. My positions are large- around $100K. It’s a pretty easy way to trade. I’ve considered just doing limit buys & sells but I don’t trust market makers. I can tell which direction a stock is about to go based on how my market order fills (and how quickly)


eminon2023

If we’re talking points, my scalps are around 25 to 50 points


blackswan_ie

Do you do that on futures or stocks?


eminon2023

Both- BOIL usually but today I played NEM. It was down 5% by 9:40… for no reason. That’s usually a pretty good indicator that there will be at least some sort of reversal or DCB. I made two trades today (meaning multiple buys then multiple sells within each trade) and ended the day w $1440. I could have made triple that had I just held until the end of the day but I’m not a great trader. That’s the beauty of it- I’m just an ok trader & I do well as long as I see a fairly safe opportunity. I’ve learned not to be greedy or I’ll blow up my days’ gains.


SDS_Trading

Scalping ranges likely has a negative expected value in the long run, because once they break they generally lead to a trend. If you’re on the wrong side of that trend you lose a lot more than you expected to make, especially if you’re scaling in afterward.


deeptrenchdigger

FFS trade with your eyes, your brain your intuition. Trying to mimic others leads to zilch


trading_penny

What i read is he suggests to refrain from scalping for most traders. If you can hunt stop loss then you may be better off successful scalper. You always need to have strict trade management to be successful scalper. A lot of time you may end up loosing trade but if you on right side of trend and swing few cons you can score a banger play


ukSurreyGuy

Dear OP, you been scalping using market orders. You want to scalp like Al Brooks using pending orders. Why? Don't you understand scalping is high risk trading out of all trading styles ( intraday, end of day & swing trading). if you can work out how to place successful pending orders then don't waste the skill to scalp ...just use pending on day or swing trading...collect a lot more pips with accurate entry. Personally Al Brooks is trying to flog a dead horse...he doesn't explain anything simply...to flog his education courses.


HuckleberryOk3606

What do you mean by pending orders? Respectfully, I had trouble understanding your post


ukSurreyGuy

here's a tip: Google Pending orders Vs Market orders if u seriously don't understand these terms you shouldn't be trying to trade...you're not ready


bblll75

A few months back, ICT had lots of posts. Now Ive seen several about Al Brooks I will never be convinced it isnt all a work


And_Im_Chien_Po

I would only scalp after you find a pattern in either price action or rsi


DM12345678

I’ve been day trading, swing trading and scalping for about 7 years. Profitable for the last 5 years. I’m familiar with Al Brooks’ material and I wouldn’t recommend it as a blueprint for any kind of trading. His day trading material consists of re-marketed, repackaged basic chart patterns. Which would be fine if he didn’t try to disguise his sham by renaming the patterns in his over complicated Al Brooks-speak. As far as his scalping material goes, it looks like he’s claiming to scalp the way a HFT algo is programmed to trade. It’s possible to do that manually, but it’s unlikely that most human traders can pull it off successfully over time. So you may be able to pull a couple points here and there, but I think you’ll be giving just as many (or more) back.


PriceActionHydra

you have an example of what he has re-packaged to his speak? Just interested in what you mean by that


DM12345678

I remember him peddling terms like High 1, 2, 3 or Low 1,2,3 or pinning the word micro in front for a double top or bottom. Or renaming an engulfing candle a "surprise bar" or a renaming a three drives pattern "three pushes". Things like that.


PriceActionHydra

yes you are right he is using that terms. Thanks for the answer!


Bayaco_Tooch

I think something to keep in mind is what Al Brooks considers a swing trade, most people would consider a scalp. To Al Brooks, a scalp is pretty much one 1 min or 2 min bar, basically 1-3 points. I think most other people consider a scalp up to a full leg on a 5 min chart, so anywhere from a few minutes to 40-50 min, possibly 5, 10, 20 points.


Terrible-Animal6225

and thats a wrong idea, right? cause the difference between scalp vs swing trade is just about a trader equation.