This trader made $14,000 scalping the DAX futures over the course of about an hour and a half. And to think, just yesterday someone left a comment on this blog that no big money can be made in scalping! I would say, there’s plenty of money to be made in every trading style, provided you don’t suck at it.
Because of youtube video length limits, this video is in 8 parts (you can go to the trader’s youtube page to see all eight… I’m only embedding the first part here).
Interestingly enough, I did not see one losing trade in this series of videos. I wasn’t watching very closely at some points because I was also eating and checking email… so there might have been some. Either they were all winners, or at least the vast majority were. Gotta love that.
So, is the trader good, or is the trader lucky? Well, there’s no sound, so you have to interpret the charts to see what kind of strategy is in use. The most interesting part that’s plainly obvious is the way the trader scales into trades as they run negative. It appears to be part of the plan to scale in, but I can tell they were sweating on a couple trades, because as soon as they went positive on the bigger positions they got right out. I wanted to see a trade get stopped out just once, as proof that they weren’t willing to double down indefinitely, but I didn’t see one.
August 1st, 2007 at 1:46 am
provided u don’t suck at it…ROFLMAO
August 16th, 2007 at 5:37 pm
Who is this guy? Does he have a blog? I would like to learn more about his trading style.
August 17th, 2007 at 1:22 am
I have no idea… TraderB52 has a profile on elitetrader, but has only made 2 posts, and both of those posts are pimping the videos. You could email or PM him or her through elitetrader though, and possibly get a response.
August 18th, 2007 at 12:57 pm
I will. I watched the whole video just now and man he is really good. Even though his risk/reward ratio must be very low since he is always averaging down (but somehow still exiting profitable each time), his winning rate must be above 90%. I made a few notes watching the video:
- On the upper chart each bar begins with a count of 150 and then runs down and a new bar begins at 0. First I thought it was the number of contracts, but it seems to be counting down the number of trades or ticks instead. Can somebody please let me know.
- He seems to watch the current bar for short term price movement. For example, he seems to enter a trade opposite to the current direction of the trend as soon as the current trend slows down or reverses.
- He averages down his position when it goes against him and uses round numbers such as 7520 to do this.
- He is quick to exit when he thinks that he made a mistake.
- He uses pivot points as support/resistance.
- He largely stays out of big moves unless they hit support/resistance.
- He is scaling in (usually averaging down when he is wrong) and out of trades.
- At one point he had an unrealized loss of over $2400 (half of his gains up to that point) due to averaging down and the position still going against him. He exited profitable though.
- At one point his position was 20 contracts because of averaging down, but again he exited profitable.