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jeremyjohnolson

The "Scalp" Strategy

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Posted (edited)

your tables say the same as mine so at least we have the math in-line 🙂

5R over 100 trades is the 0.05R reward to risk ratio per trade and you call it an edge which is correct mathematically.

Practically, you need to risk 100 dollars to make 5 dollars. And after taking 100 trades risking 10000 dollars you make 500 dollars. If you risk 100 per trade you need to take 1000 trades to make 5000 dollars. 50 trades daily.

Now start counting the commisions on how much you need to risk to make a living out of this edge. And count the time how much it takes you to take 50 trades daily.

It does not seem worth it to me.

Edited by peterB

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10 hours ago, peterB said:

your tables say the same as mine so at least we have the math in-line 🙂

5R over 100 trades is the 0.05R reward to risk ratio per trade and you call it an edge which is correct mathematically.

Practically, you need to risk 100 dollars to make 5 dollars. And after taking 100 trades risking 10000 dollars you make 500 dollars. If you risk 100 per trade you need to take 1000 trades to make 5000 dollars. 50 trades daily.

Now start counting the commisions on how much you need to risk to make a living out of this edge. And count the time how much it takes you to take 50 trades daily.

It does not seem worth it to me.

I'll give you that.  You would definitely need to already have a big account for the edge to be worth it with commissions.

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