Search result for:  minimum scalp

I'm assuming you are not a beginner, as scalping in itself is not recommended for beginners. It needs high accuracy rate as you might have learnt/will learn in the course and the reasoning why. minimum scalp size depends on the time frame you are trading as well and is not just about a certain ticks/points/pips. It changes according to volatility exhibited by markets in the recent times. This topic has been discussed before and you can check the same out from the Support Forum search here - Relevant results are given here - , here - , here - , here - . Al discusses the same in video 31C. The matter that he discusses in a particular video is given in the video description right after the name or title of it in the video index section. Since you are by yourself as a trader, it is recommended to get the information first hand and from relevant sources (first Al and then from senior members of forum who know enough to provide you the correct information) to ensure the information that you're getting is actually worth your time and money. Hope that helps.

Hello, According to AL, the minimum scalp size should be maximum of height of average bars ir 5-10% of average daily range based on recent data so the formula i used to calculate minimum scalp is = MAX(height of average bars, 10% of average daily range ) When i apply it on E mini, it give me minimum scalp size to be about 8 pointsI see people taking 1 point scalp which is to me unsustainable how do you explain this ? if i ask you, to find minimum scalp size on any market, how would you do it ?

Hello Omkar, According to Al, scalp is nothing but any trade in which you exit before 1:2.... Talking about minimum scalp, this is not an exact theory which you need to follow but the concept behind minimum scalp (acc. to my understanding on basis of Al's saying ) is :- that minimum profit on a particular trade which can over come your expenses in that particular trade So there fore its truly depending upon market to market If talking about Nifty, I know the taxes are very high so you need to calculate the expense to profit ratio per trade ex. 75Qty per ...

When trading a bull channel for instance, Al always makes the question, can bears make money selling at previous highs? Can they do at least a minimum scalp? He sais that a minimum scalp in Forex markets is 10 pips in a 5 minute timeframe. That is ok, but if I am trading in other timeframe or another instrument, is there a way or some guideline to know how many pips/ticks is the minimum scalp size? Thanks on advance.

Hello Traders, What is the point of 10pips as minimum scalp size for forex market? As long as trader is ok with commissions include spread and of course good at reading price action, I think he can scalp 5min EURUSD almost every bar. 10pips as minimum seems too large compare to the size of commissions and also daily average range. (My broker charge me $5 round turn per lot and around 0.1pips spread for EURUSD) I did quick math and it shows me 2pips as minimum scalp size is reasonable as 1point for Emini. (Even though if they change me 1pips spread, ...

is the minimum scalp size still 1 point or has it increased due to the expansion of the avg daily range of the ES e-mini since its 2-3 times larger than it was when the course recordings were made? because are scale in traders still going off 1-3 points (1-3x the size of minimum scalp) or has it increased?

Hey Andreas, How do you find the average bar's range? and how do you use ATR to find minimum scalp? I'm trying to find the minimum scalp in EURUSD on 5min Timeframe(10pips like Al says on the course is a lot on EUR session for most days). Thanks on advance.

In this video and other places in the video course, it states that when scaling in - the next entry should be 1-2 points from the 1st entry because that's a minimum scalp. Given then ES was trading around 2,000 when these videos were made - can I extrapolate that to the minimum scalp now being roughly 3-4 points in the ES and more importantly, since I trade the NQ, can I ratio that and say on the NQ I should only be scaling in 15 - 20 points higher? I know these are just general guidelines, but would be helpful to have an opinion.

I use the following reasoning for any instrument. If we assume our edge has a 60% probability of winning 1R and 40% of losing 1R, then after 10 trades, 6 winners and 4 losers, we net 2R (2 times the initial risk), thus the minimum scalp size must be so that the spread + commissions don't exceed 1/10 of an R or else we net less than 1R after 10 trades. So in short, add your typical spread + commission and take that 10 times, that's the minimum scalp for me. Not sure if this is how Al defines it though.

Hey, I have a doubt on this topic. like, you are saying that a major low is when the price moves up a minimum scalp from the recent high of the market to consider the recent low to be major. Al says that the minimum scalp in forex is 10 pips, E-mini is 1 point and for stock is 10% or 5% of average day's range. Then is it really necessary to use ATR to find minimum scalp? I'm asking this because I don't understand how to calculate minimum scalp using ATR like you say.

Hi, it is definitely not necessary and not the only way. The idea is from Al's book Trends and I've used atr to determine bar range since half an average bars range is also considered a minimum scalp ( this is mentioned in the course ).

Hey Jerney, 1. I think 2x is pretty tight, Al does use a 3x minimum scalp size stop to make 1x minimum scalp(30pips stop to make 10pips). May be its only for TR and not for trend. plus If its a strong trend(no bars in the opposite direction) there is no need to scalp just swing trade it have a swing stop(bottom of bull leg or bull BO). 2. in the above video, their is a part where Al says that he turns a bad swing trade to a scalp trade. but, never turns a scalp trade to a swing trade. ...

There is multiple methods to determine a reasonable minimum scalp target. In general in any market, a minimum scalp target could be 5-10% of the average day range. There is exceptions to this. Another way is to always go for one times the initial risk or actual risk, and finally you can go for the size of an average bar. scalpers generally expect a successful trade within 1-5 bars and sometimes more, so you cannot expect many times the initial risk. Remember, going for the minimum is rarely the best. However, if you have a system that consistently wins 1 ti ...

Average bar in forex is bigger than 10 pips. If, for instance, you buy for a scalp at the high of a bar your stop-loss is at the bottom of it, so probably more than 10 pips away. Because scalping (= probability around 60%), risk should equal reward so your minimum profit target should be at the same distance to make the trader's equation positive. So if you want a positive trader's equation with a 2 pips profit target you need to have a 2 pips actual risk, which means your trade is triggered and the MKT breaks out without looking back, which is great but i ...

Average bar size, average true range, 5%-10% of average daily range etc. You have to determine lookback period. You can also look at measures of risk and see how much 1 times actual risk is on the setups. This is also a minimum scalp size.