Futures Day Trading….Scalping Strategy Coming Soon

Market Content August 19, 2009

Well to our surprise today, we actually had some overall moderate volume in the market; especially considering all the factors that come into play during the summertime. We were able to take one trade today that fit our rules, and certainly made it count. Let’s review…

Our one and only trade of the morning came at 9:01am EST on the Crude Oil futures (Symbol CL). Before entering this trade, we had to consider the overall volume in the market so far, especially considering the Crude Oil inventories were due to be released at 10:30am EST. The last thing we wanted to do was take a trade on a possibly thin market such as the Crude Oil. We concluded that going into the open of the Crude Oil open outcry pits at 9:00am EST that we indeed had enough volume.

We then began to look for possible entries, which came quickly after the pit opening at 9:00am EST in the pattern of a 2-step to the long side. At 9:01am EST, after verifying that we had a clear road ahead of us, with no dynamic resistance and green Pace of Tape bars, we knew the probability of success was in our favor. We then entered our trade long on the Crude Oil futures at a basis of 70.28. Using our automatic trade management system via our trading platform, Ninja Trader, we were quickly able to scale out of our trade with +3 ticks (2 contracts), +6 ticks (1 contract) and were then scratched out of our final contract, giving us a total of 12 ticks on the trade ($10/tick).

Today’s trade total’s: 1 for 1 $120 in profit!