Simple Scalping

Sometimes when I watch back some of my videos and listen to all my waffle I cringe. I am always self critical of what I do. I can always do better. I think that’s how you improve over time. You will know that I do not go around making claims as to my incredible success. I am not the best trader out there, I do ok. I make a living. But I do share most of the little I do know. You’re not getting any hard sell. I am not emailing you (unless you asked me to, in which case I am happy to help you if I can). My old mailing list that I used to send out “The inside track” last year is in the trash bin. You will have never received anything from me other than what you asked for. You may know that I now run a mentoring program. This will be full pretty soon. I have 1 place in June and 7 in July. I have a Sept date pencilled in. That’s it. Wether I continue to take new people in after that is uncertain.

As you guys probably know, I put a huge amount of effort into my videos and blog. I try to make the videos relevant and what I write slightly interesting. Everything I do has my personality in it. From my waffle to my bad language and even some soundbites that I know some of you think about while you’re trading. I wear my heart on my sleeve and I say what I think usually. I like to have a laugh and I never mean to cause offence to anyone in what I say or write. But I am genuine and honest in what I say. If you ask me a question I will answer you as comprehensively and as quickly as I can. I know you appreciate that, because you tell me. Apart from a few posts on Twitter I don’t promote myself. I guess most of you find me by accident, but I do have a regular and very loyal following. I am extremley grateful for this.

So if you like my stuff, please spread the word. If you don’t thanks for reading and au revior 🙂

What I try to do when I am recording a video is firstly to make a few quid, obviously. Secondly I try to explain what I am looking at and what I am thinking. There is a good reason why there are not that many people putting up trading videos of any quantity or quality. I am not talking about amounts won. I think that is completely irrelevant. I am talking about interesting viewing content. Showing you a method you can maybe replicate, maybe something you can take from me and add to your own methods to improve them.

One of the things that I have taken from the group of guys who I am Mentoring is how diverse their methods are. Now I have shown them mine, do you think they should abandon all good things they were doing in their trading? Not a chance! Of course eliminating the errors and mistakes is where the greatest benefit lies. But ultimately they will take the good things I have hopefully shown them and add them to their Arsenal. Their own style will develop.

It is so important to when trading to realise that there is no “one size fits all” approach. You cannot go from race to race and apply the same method. It simply doesn’t work too well (in my experience anyway). You need to adapt and tweak existing methods that work and apply them with some diligence. A 4 runner race with a favourite at 1.45 and 3 rags will not trade the same as a 17 runner handicap where the fav is 8.6.

So enough waffle and Bull shit. let’s get on with it.

There are certain price points in markets that act as a natural “dam” if you like. I call them crossover points or XO’s for short. These are they places in the market where the tick size changes. The ones of note are 2,3,4,6 and 10. In this video i am using the XO at 4 on Crystal Lake. Why have I chosen this runner? There are 2 others at a similar price after all.

If we take an overview of the whole market we can see that Best Kept is stable at a similar price, you can see by the traded volumes highlighted in green and the blue candlesticks that the price is stable. The green bars pick out the larger amounts of traded volume – The Blue candlesticks show at what odds the runner was matched at recently. This gives you an accurate picture of what exactly is currently happening in the market.

The odds are 4 or 5 ticks above the XO at 4. The other alternative is Billingsgate. This is also at 4 at the XO. But is being backed and it is possible it may break though the XO. The beauty of trading a market after you know what has happened is it’s easy and in most cases very obvious. But in real time in real life it’s a little harder 🙂

There are a little over 3 minutes to the scheduled off time. I had attempted to take a position under the XO at 3.95. This is to try to take advantage of the enhanced tick size and reduced downside. This isn’t a “random” position. There are several reasons this is a sound place to scalp.

  1. It is generally weak
  2. There is opposition to it from multiple other runners – It’s harder for a horse to stream if there is credible opposition.
  3.  It has broken through the top of it’s defined trading rangeTo go back under the XO is difficult once it has gone through – This is because of the reduced tick size going down.
  4. Backers are reluctant to take the risk it will bounce back up which means their exposure to downside is greater. – The exact opposite reason we want to LAY it here.

I call this a “simple scalp’ but to be honest I don’t like to pidgeon hole trades. What i want is the odds to fly off into the distance with a big chunk of my wedge on. But that just does not happen every race. Sometimes the smart trade is to just grind out a total with a little hybrid trading. Part swing and part scalp. I am not a natural scalper. This is one of the weaker areas of my trading and one I am keen to improve.

So I start the trade with my £200 matched at 3.95. I leave this as the backbone of my trade. I get the reduced downside and enhanced upside. It’s then a case of adding to my trade to try and take 1 or 2 ticks at a time. In effect build a position. Every time I get a successfully trade in, my scratch position gets lower and my safety further away from the action.

A minute into the trade sees the complexion of the race change. As Billingsgate who I thought would break the XO and steam as in fact drifted. It’s the other “player” Best Kept that has broken the xO. It doesn’t matter, it hasn’t effected what’s happening to Crystal Lake.

What my aim is now is to get as many trades matched as possible. I am using the position in the queue indicator (the far right column) to judge where my money is roughly . I usually do this in my head, but this works well enough. Over the douse of the trade the odds did not go more than 5 ticks either way. At no time did it breach the XO and endanger my position.

Could I have traded it differently and made more? Yes, of course. Should I have been more aggressive with my staking? Absolutely. Would others have traded it better? Yes of course they would. 🙂

Cheers Steve (MG)

14 thoughts on “Simple Scalping

  1. this the geeks ? how do u get indicators on the last traded amount column didnt think ya could do this on geeks toy .. i searched for an option to try it while ago but couldnt find it

      • Hey Steve, another great video, thanks for sharing.

        Just wondering, do you prefer geeks to BA?? I started with Geeks and find it a great tool to use. Do you have any details when the new version will be released?

  2. Thanks for the video. Always interesting and informative to see how a real pro trades. Scalping is a popular form of trade, it would be great if you’re make more videos about scalping.

  3. Hi Steve,
    you a great and thanks for a very interessting video again. Every time you put up a new viedo and show something, i´m wonder how excatly you can tell whats going on in the market and break it down. Fantastic.

    Cheers
    T

  4. hi steve
    today im going to do something i have never done. i have an old mate at work, and im going to try and talk to him about trading, and recommend your blog. hes a good lad who hasnt had it easy over the years, but has always enjoyed a bet, i will be interested in his comments as other people i have tried to talk too about trading dont have a clue what im talking about, or are completely negative. keep up the good work. from one of your long time followers
    peter
    ps i will let know his response

  5. So grateful for the time u take to help explain things ur a great help to help me try understand things thanx .. quick question is there a benifit to usin stakes manually when scalpin compared to just usin tick offset.. cheers

  6. great video mugs my knowledge base getting bigger and better everytime you post new video i have never seen the geeks toy before is it a better ( cheaper lol) alternative to bet angel as my bank is so small am just about covering the ba fees as i can only trade weekends . is it easy to get used to are the lay and back columns on opposite sides of ladder. thanks again P.H

  7. Hi Mugs,

    That’s a beauty and im hoping something i can use in my trading. I generally lay think ive said that before to you don’t know why just where i feel comfortable. My thought process is one or more with a bit of positive pressure somewhere has to have a negative affect on something and there usually easy to spot, but have struggled with this very example where you feel and know its weak but the price just wont move as much as you hoped. I end up nipping a few quid or a scratch which is ok but as you say yea always feel it should of been more. Thanks feel i can learn a lot from this Vid.

    Question: I have probably watched all your vids 10 times over (stalker alert) would i be right in thinking you now possibly do more lay trades than in the past? could just be the videos you post of course or has your style evolved?

    Cheers Mugs

    Mark

    • Hi Mark – Thanks for you comment. What I try to do in my videos is to show something different if I can, something you maybe haven’t considered before or maybe something you know how to do already, but want to see it from a different perspective. I think you have to think about it like this; There isn’t a 30 steam in every race. In most races you may get a couple of runners who move in several ticks, 1 runner that is a bit stronger but not spectacular, the rest ib general either drift or traded within a pretty tight range. This all depends go the type of race and it’s importance. i.e The chances of a 30 tick steam on the favourite in the Cheltenham Gold cup is far more unlikely than 30 tick steam in a 5f seller on a friday evening at Wolverhampton. There are a set of trade which you could categorise as “Bread & Butter”. Robust techniques that you can find in many markets where you can just grind out a small to medium amount. You don’t have to be spectacular, just consistent. Do it over and over and make sure you control you losses. I think this is one of those such trades.
      Although watching trades what involve breakouts and big swings are probably more entertaining for viewers. From the comments and emails I receive, I think you guys get more from these the of videos. Just everyday (boring if you like) everyday stuff that you can relate to and maybe pick up something from what I do that you are able to add to your own trading. That maybe why it appears I am laying more. tbh I didn’t consider it 🙂
      Cheers Steve (MG)

  8. ‘Secondly I try to explain what I am looking at and what I am thinking. There is a good reason why there are not that many people putting up trading videos of any quantity or quality. I am not talking about amounts won. I think that is completely irrelevant. I am talking about interesting viewing content. Showing you a method you can maybe replicate, maybe something you can take from me and add to your own methods to improve them.’

    +1

    You explain your underlying logic, which enables people to work out how to apply the principles you use to their own trading. By contrast, many videos out there show someone making (say) £80 without giving anything but the vaguest clue about how they did it, which can lead viewers to form incorrect conclusions about why the trader did what they did.

    As I’ve said in the BA forum, you are probably the only trader out there who doesn’t hold back in explaining what he does and why he does it.

    Jeff

  9. Hi MG,

    I like all your videos and have learned a lot from them but I especially like the ones where you are scalping or doing some lower profit trades. Like you say it shows something different and interesting. It’s good seeing the potential of the big swing trades but not every trade can be like that. I often end up making £50 + on a swing and then lose it throughout the day on markets not suitable for swinging.

    I find that I can now get on some pretty good swing trades but when the market isn’t right for that I don’t really know what to do and end up getting frustrated. Do you scalp very often or what do you tend to do when you are not doing swing trades as this seems to be most of your videos?

    I’d love to see some more videos on this kind of thing, some simpler more ‘bread and butter’ trades like you say.

    Thanks for great videos MG

    Andy

    • Andy, Thanks for your great comments. I have been thinking about this much of late. I am working with stuff like this with the guys in my Mentorship group. If you can use staking and techniques that are able to be replicated I find it works well. Look out for more stuff like this. Cheers
      MG

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