scalping profit

How to Profit from Scalping: A Winning Futures Trading Strategy

Digitex Futures
Trading
• Adam Todd
April 2, 2021

Digitex CEO Adam Todd has made his career on the back of a trading technique called scalping. It’s a highly successful futures trading strategy for short-term traders – under the right conditions. However, when the conditions are right, you can learn to win at scalping in any market. Here, Adam shares his tips and insights for how to implement your own winning scalping trading strategy. 

As a successful futures and sports betting trader, my trading style was always focused more on avoiding losing trades than on riding the winners. And the way I did that was to make my trades as short-term as possible. I discovered that the longer I held a position, the bigger the risk that my position would turn into a loser. 

There seemed to be a direct link between my success, and how little time I held a position before going flat again. The shorter the amount of time in a position, the better chance I had of that trade not being a loser. This was most likely due to the nature of my trade selection process which was to be flat for most of the time, occasionally darting in and out of the market stealing single tick profits from larger moves when momentum picked up.

My scalping strategy basically involved judging when the momentum is high enough to keep the move going for another 30 seconds. If I didn’t get at least a single tick profit within that timeframe there was no reason to stay in that trade.

Successful Scalpers Don’t Get Tied Up in Learning About the Asset

As a young pit trader, I had no idea what a Bund futures contract actually was or why it moved around so much. Later, as a sports betting trader, I wouldn’t even know the name of the horse on which I was placing and laying hundreds of bets. Yet, I would go weeks and sometimes months of full-time trading as a scalper without having a single losing day. 

Short-term scalping requires no fundamental knowledge of the underlying instrument on which you’re trading. As soon as you have entered a position you’re looking to exit it, hopefully with a one or two tick profit but willing to scratch it or lose a tick without any emotional attachment to the trade. 

This style of ultra short term, manual trading is labor-intensive and requires the full concentration and attention of the trader. You can’t be checking emails and looking on Facebook and reading random crypto trading articles while you’re scalping to win. 

Besides, you don’t need to know what’s going on out there. It doesn’t matter why a price is moving when you’re a scalp trader because whichever way it goes you’re going to be following it. 

Scalping shouldn’t be a contrary style of trading because the active approach means you can get yourself in a huge mess very quickly. The safest style of scalping is simply following the price, jumping in when momentum is at its highest and then getting out quickly. 

It’s actually better to have no opinion or knowledge of the long term price direction of the underlying instrument so that it doesn’t affect your ability to go against that opinion in these short term scalp trades.

How Fees Ravage Profits

The scalping style of trading described here is the easiest to learn, requires no specialized knowledge about the underlying instrument and will give you steadier, less volatile results. But the big problem is that this style of trading is particularly susceptible to the ravages of the maker and taker fee model of crypto futures exchanges. 

It was possible for me to successfully scalp trade traditional futures markets in this manner because the futures tick value of one tick on the Bund was 25 Deutsch Marks and the commission to buy and sell one futures contract was less than 3 Deutsch Marks and I got a scratch trade rebate every time I bought and sold at the same price. 

All I had to do was make one tick for every 10 round turns to break even, and anything I made over that was profit. It was a lot harder than it sounds. But it was possible because the commission fee to buy and sell one futures contract was one-tenth of the value of one tick. 

However, the taker fee model used on every other crypto futures exchange has established commissions that are astronomically high. Currently, my style of short term scalping to win is literally impossible. The commission cost of buying and selling one futures contract with a taker order is more like ten times the value of one tick. 

That’s absolutely crazy. It’s literally impossible to beat odds like that running against you. At the exact moment you enter a trade, you’re ten ticks offside already. There’s a built-in mechanical edge that you cannot beat, and which guarantees you will lose over the long run. 

On Bitmex, the taker fee is 0.075% of the notional value of the underlying instrument. That may look small, but if you’re trading with 100x leverage that’s actually 7.5% of the margin you put down to enter the trade. If you exit the trade with a Taker order then your trading fees are 15% of the order value! 

For example, total fees on a $1,000 trade with 100x leverage are $150 [100 x $1,000 x 0.00075 x 2]. How can you ever expect to beat a 15% edge working against you?

A typical trade for a short term scalper might go like this: the price starts moving fast so I enter a trade quickly with a taker order that either smash the bid or lifts the offer. Then I immediately place a maker order to join the bid or offer to get out. If it’s not filled within seconds then I’ll cancel that and lift the offer or hit the bid with another taker order to exit the trade. 

I entered the trade with a taker order so now I need to make ten ticks just to break even. And if I exit the trade with a taker order I’ve got to make 20 ticks profit just to break even. That’s just impossible for a short-term scalp trade. 

I can still place trades as maker orders only but it’s impossible to trade profitably when you’re limited to only maker orders. This is especially true in very volatile markets – like crypto – and you will constantly not be getting filled on the good moves. 

Simply put, the maker fee and taker fee model generate large commissions for the exchange and makes it impossible for profitable short-term scalping. A huge number of traders are unable to participate and the massive liquidity they would provide is suffocated by the exchange’s need to charge high fees on turnover. 

As a scalper, I shouldn’t be paying a percentage of the notional value of the underlying instrument. I’m providing liquidity and should be encouraged, not squeezed out of the market entirely.

How Digitex Enables Profitable Scalp Trading

The Digitex Futures exchange is a short-term trader’s paradise. With absolutely no trading fees of any kind on taker orders, traders are free to pursue day trading futures strategies like scalping that are not viable anywhere else, creating massive liquidity in the process. 

That liquidity isn’t constantly drained by the exchange in the form of commissions. Instead, it continues to churn around in the trading ecosystem until it is won by the better traders. As a result, the chances of becoming a winning scalp trader on Digitex are far higher because we’re not siphoning off commission fees as percentages of the notional value of traded contracts. 

The viral marketing potential of a futures exchange that doesn’t have any built-in mechanical edge working against its traders is massive. The effective deployment of user-generated content combined with viral marketing techniques is starting to create a very large and active userbase, further increasing liquidity. 

Living a Traders Dream

Successful trading is a dream of many millions of people and Digitex wants to help make many of those dreams come true. We hope that many thousands of people will experience the unbridled freedom and excitement of becoming a profitable short-term trader who gets to live a lifestyle that most people will only dream of. 

Imagine if you can consistently make $50 a day or $200 a day or $500 a day from trading? How much would that change your life and the lives of everyone around you for the better? 

If you want to start implementing your own successful scalp trading strategy with zero fees, sign up for an account now and start living the trader’s dream.

April 2, 2021
Digitex Futures
Trading

How to Profit from Scalping: A Winning Futures Trading Strategy

Adam Todd
scalping profit

Digitex CEO Adam Todd has made his career on the back of a trading technique called scalping. It’s a highly successful futures trading strategy for short-term traders – under the right conditions. However, when the conditions are right, you can learn to win at scalping in any market. Here, Adam shares his tips and insights for how to implement your own winning scalping trading strategy. 

As a successful futures and sports betting trader, my trading style was always focused more on avoiding losing trades than on riding the winners. And the way I did that was to make my trades as short-term as possible. I discovered that the longer I held a position, the bigger the risk that my position would turn into a loser. 

There seemed to be a direct link between my success, and how little time I held a position before going flat again. The shorter the amount of time in a position, the better chance I had of that trade not being a loser. This was most likely due to the nature of my trade selection process which was to be flat for most of the time, occasionally darting in and out of the market stealing single tick profits from larger moves when momentum picked up.

My scalping strategy basically involved judging when the momentum is high enough to keep the move going for another 30 seconds. If I didn’t get at least a single tick profit within that timeframe there was no reason to stay in that trade.

Successful Scalpers Don’t Get Tied Up in Learning About the Asset

As a young pit trader, I had no idea what a Bund futures contract actually was or why it moved around so much. Later, as a sports betting trader, I wouldn’t even know the name of the horse on which I was placing and laying hundreds of bets. Yet, I would go weeks and sometimes months of full-time trading as a scalper without having a single losing day. 

Short-term scalping requires no fundamental knowledge of the underlying instrument on which you’re trading. As soon as you have entered a position you’re looking to exit it, hopefully with a one or two tick profit but willing to scratch it or lose a tick without any emotional attachment to the trade. 

This style of ultra short term, manual trading is labor-intensive and requires the full concentration and attention of the trader. You can’t be checking emails and looking on Facebook and reading random crypto trading articles while you’re scalping to win. 

Besides, you don’t need to know what’s going on out there. It doesn’t matter why a price is moving when you’re a scalp trader because whichever way it goes you’re going to be following it. 

Scalping shouldn’t be a contrary style of trading because the active approach means you can get yourself in a huge mess very quickly. The safest style of scalping is simply following the price, jumping in when momentum is at its highest and then getting out quickly. 

It’s actually better to have no opinion or knowledge of the long term price direction of the underlying instrument so that it doesn’t affect your ability to go against that opinion in these short term scalp trades.

How Fees Ravage Profits

The scalping style of trading described here is the easiest to learn, requires no specialized knowledge about the underlying instrument and will give you steadier, less volatile results. But the big problem is that this style of trading is particularly susceptible to the ravages of the maker and taker fee model of crypto futures exchanges. 

It was possible for me to successfully scalp trade traditional futures markets in this manner because the futures tick value of one tick on the Bund was 25 Deutsch Marks and the commission to buy and sell one futures contract was less than 3 Deutsch Marks and I got a scratch trade rebate every time I bought and sold at the same price. 

All I had to do was make one tick for every 10 round turns to break even, and anything I made over that was profit. It was a lot harder than it sounds. But it was possible because the commission fee to buy and sell one futures contract was one-tenth of the value of one tick. 

However, the taker fee model used on every other crypto futures exchange has established commissions that are astronomically high. Currently, my style of short term scalping to win is literally impossible. The commission cost of buying and selling one futures contract with a taker order is more like ten times the value of one tick. 

That’s absolutely crazy. It’s literally impossible to beat odds like that running against you. At the exact moment you enter a trade, you’re ten ticks offside already. There’s a built-in mechanical edge that you cannot beat, and which guarantees you will lose over the long run. 

On Bitmex, the taker fee is 0.075% of the notional value of the underlying instrument. That may look small, but if you’re trading with 100x leverage that’s actually 7.5% of the margin you put down to enter the trade. If you exit the trade with a Taker order then your trading fees are 15% of the order value! 

For example, total fees on a $1,000 trade with 100x leverage are $150 [100 x $1,000 x 0.00075 x 2]. How can you ever expect to beat a 15% edge working against you?

A typical trade for a short term scalper might go like this: the price starts moving fast so I enter a trade quickly with a taker order that either smash the bid or lifts the offer. Then I immediately place a maker order to join the bid or offer to get out. If it’s not filled within seconds then I’ll cancel that and lift the offer or hit the bid with another taker order to exit the trade. 

I entered the trade with a taker order so now I need to make ten ticks just to break even. And if I exit the trade with a taker order I’ve got to make 20 ticks profit just to break even. That’s just impossible for a short-term scalp trade. 

I can still place trades as maker orders only but it’s impossible to trade profitably when you’re limited to only maker orders. This is especially true in very volatile markets – like crypto – and you will constantly not be getting filled on the good moves. 

Simply put, the maker fee and taker fee model generate large commissions for the exchange and makes it impossible for profitable short-term scalping. A huge number of traders are unable to participate and the massive liquidity they would provide is suffocated by the exchange’s need to charge high fees on turnover. 

As a scalper, I shouldn’t be paying a percentage of the notional value of the underlying instrument. I’m providing liquidity and should be encouraged, not squeezed out of the market entirely.

How Digitex Enables Profitable Scalp Trading

The Digitex Futures exchange is a short-term trader’s paradise. With absolutely no trading fees of any kind on taker orders, traders are free to pursue day trading futures strategies like scalping that are not viable anywhere else, creating massive liquidity in the process. 

That liquidity isn’t constantly drained by the exchange in the form of commissions. Instead, it continues to churn around in the trading ecosystem until it is won by the better traders. As a result, the chances of becoming a winning scalp trader on Digitex are far higher because we’re not siphoning off commission fees as percentages of the notional value of traded contracts. 

The viral marketing potential of a futures exchange that doesn’t have any built-in mechanical edge working against its traders is massive. The effective deployment of user-generated content combined with viral marketing techniques is starting to create a very large and active userbase, further increasing liquidity. 

Living a Traders Dream

Successful trading is a dream of many millions of people and Digitex wants to help make many of those dreams come true. We hope that many thousands of people will experience the unbridled freedom and excitement of becoming a profitable short-term trader who gets to live a lifestyle that most people will only dream of. 

Imagine if you can consistently make $50 a day or $200 a day or $500 a day from trading? How much would that change your life and the lives of everyone around you for the better? 

If you want to start implementing your own successful scalp trading strategy with zero fees, sign up for an account now and start living the trader’s dream.

Latest News

traders

The Digitex Mission: To Create More Winning Traders

Digitex Futures
Trading
• Adam Todd
April 8, 2020

Everybody likes to win. Winning makes you feel good. When you feel good you think positively about yourself and your environment and it has a domino effect on other aspects of your life. As a short term scalper on the futures markets and on Betfair’s horse racing markets, I would have winning streaks that lasted weeks and sometimes months without having a losing day. 

The positive psychological and physiological effects of constantly winning cannot be overemphasized. Apart from enjoying good health and feeling genuinely happy most of the time, a positive mental attitude attracts good things into your life in a way that can’t be fully explained logically. Feeling and acting like a winner will change your life and will positively affect everyone around you. 

This is why it’s so personally satisfying for me to be developing a trading platform whose primary mission is to create more winning traders, with no interest in making money from charging commissions on trades. I’ve been lucky enough to experience having a winning mentality for years and the thought of bringing that to millions of people is tremendously exciting. 

But how can the Digitex Futures exchange survive with such a cum-by-yar, happy-clappy philosophy of wanting to make its traders happy? Shouldn’t a futures exchange be run by a bunch of bean-counting suits that want to squeeze every ounce of value out of every last trader for the benefit of the exchange’s stakeholders?

Well, if an exchange needs to make money from charging commissions on trades then yes it probably should be run by bean-counting suits. But Digitex is different. Digitex makes its money by increasing the value of its native currency, the DGTX token. 

Do you want to try your hand at commission-free bitcoin futures trading? Sign up for an account on the beta right now. With the mainnet coming up in April, you can practice your trading skills, get a feel for our one-click trading ladder and start preparing to win

SIGN UP
Winning Traders Are the Best Form of Marketing

Creating winning, winning traders is absolutely the best way to run our business, because winning traders are the very best form of marketing for the Digitex Futures exchange, and that will directly translate to increased demand for DGTX tokens. 

The average winning trader probably has 50 or more people in their life, both family and friends, who are aware of their trading success and will try to emulate it. Winning traders will create very strong viral marketing loops because a winning trader encapsulates everything that most people dream of. 

The winning trader enjoys financial success coupled with complete freedom. He or she works for nobody, operating outside the boundaries of normal society, with no clients, producing no products and without providing any service to anyone.

They can work whatever hours they want to, from wherever they want in the world. A winning trader is like a predator with the ability to live off its wits in a world where the vast majority of people are struggling to survive.

I think that a futures exchange whose mission is to create as many winning traders as possible has the potential to be absolutely massive. 

Because winning traders will be happy. They will feel good. Their lives and the lives of their families will improve. There will be a large number of people who have a genuinely strong affection for the Digitex Futures exchange and its native currency, the DGTX token. 

How Will Digitex Create More Winning Traders?

By eliminating transaction fees on trades, the exchange won’t constantly be siphoning off liquidity from the pool of money that is deposited into the exchange by its traders. That money is allowed to churn around the markets, constantly being won and lost amongst traders without the insidious leakage that occurs on every other exchange in the form of commissions. Eventually, that money will be won by the better traders, not taken by the exchange. 

Also, system gains that are made from the exchange’s liquidation engine are not kept forever by the exchange in an ever-growing insurance fund. Instead, system gains are redistributed to traders through market maker bots that are programmed to lose. This means traders must compete amongst themselves for these losses, further increasing liquidity and demand for DGTX tokens, but as a collective group, those traders will be rewarded with however much the market maker bots lose.

Not only has Digitex removed the mechanical edge of commissions that exists on every other exchange, but through loss-making market makers, there is actually going to be a mechanical edge working in the disciplined traders’ favor. Both of these advantages will be more efficiently capitalized on by short term, active traders whose trading strategies will create highly liquid futures markets.

Of course, this doesn’t mean that everyone on the Digitex Futures exchange will make money. Trading is still a zero-sum game, but there will be a much higher percentage of winning traders than exists on other fee-charging exchanges who don’t redistribute system gains through market maker losses. I would guess that probably 20% of traders on the Digitex Futures exchange will be profitable and they will take their profits from the other 80% of traders. 

If we have a million traders on our exchange, that means there could be over 200,000 people around the world who can positively change their lives with financial freedom and a winning mentality that positively affects everyone around them. There are millions of people in this world for whom making just $50 a day from their computer is a life-changing amount of money.

And I’m so excited and grateful to have the chance to create a product that can potentially affect the lives of so many people in such a profound and meaningful way. Thank you all for your continual support! Cheers!

You don’t need real DGTX tokens for trading on the testnet, but if you want to stock up on DGTX at a knock-down price right now amid market conditions, there’s never been a better time. Hop on over to the Treasury now and enjoy a seamless, frictionless transaction with zero fees and zero KYC.

BUY DGTX
April 8, 2020
Digitex Futures
Trading

The Digitex Mission: To Create More Winning Traders

Adam Todd
traders

Everybody likes to win. Winning makes you feel good. When you feel good you think positively about yourself and your environment and it has a domino effect on other aspects of your life. As a short term scalper on the futures markets and on Betfair’s horse racing markets, I would have winning streaks that lasted weeks and sometimes months without having a losing day. 

The positive psychological and physiological effects of constantly winning cannot be overemphasized. Apart from enjoying good health and feeling genuinely happy most of the time, a positive mental attitude attracts good things into your life in a way that can’t be fully explained logically. Feeling and acting like a winner will change your life and will positively affect everyone around you. 

This is why it’s so personally satisfying for me to be developing a trading platform whose primary mission is to create more winning traders, with no interest in making money from charging commissions on trades. I’ve been lucky enough to experience having a winning mentality for years and the thought of bringing that to millions of people is tremendously exciting. 

But how can the Digitex Futures exchange survive with such a cum-by-yar, happy-clappy philosophy of wanting to make its traders happy? Shouldn’t a futures exchange be run by a bunch of bean-counting suits that want to squeeze every ounce of value out of every last trader for the benefit of the exchange’s stakeholders?

Well, if an exchange needs to make money from charging commissions on trades then yes it probably should be run by bean-counting suits. But Digitex is different. Digitex makes its money by increasing the value of its native currency, the DGTX token. 

Do you want to try your hand at commission-free bitcoin futures trading? Sign up for an account on the beta right now. With the mainnet coming up in April, you can practice your trading skills, get a feel for our one-click trading ladder and start preparing to win

SIGN UP
Winning Traders Are the Best Form of Marketing

Creating winning, winning traders is absolutely the best way to run our business, because winning traders are the very best form of marketing for the Digitex Futures exchange, and that will directly translate to increased demand for DGTX tokens. 

The average winning trader probably has 50 or more people in their life, both family and friends, who are aware of their trading success and will try to emulate it. Winning traders will create very strong viral marketing loops because a winning trader encapsulates everything that most people dream of. 

The winning trader enjoys financial success coupled with complete freedom. He or she works for nobody, operating outside the boundaries of normal society, with no clients, producing no products and without providing any service to anyone.

They can work whatever hours they want to, from wherever they want in the world. A winning trader is like a predator with the ability to live off its wits in a world where the vast majority of people are struggling to survive.

I think that a futures exchange whose mission is to create as many winning traders as possible has the potential to be absolutely massive. 

Because winning traders will be happy. They will feel good. Their lives and the lives of their families will improve. There will be a large number of people who have a genuinely strong affection for the Digitex Futures exchange and its native currency, the DGTX token. 

How Will Digitex Create More Winning Traders?

By eliminating transaction fees on trades, the exchange won’t constantly be siphoning off liquidity from the pool of money that is deposited into the exchange by its traders. That money is allowed to churn around the markets, constantly being won and lost amongst traders without the insidious leakage that occurs on every other exchange in the form of commissions. Eventually, that money will be won by the better traders, not taken by the exchange. 

Also, system gains that are made from the exchange’s liquidation engine are not kept forever by the exchange in an ever-growing insurance fund. Instead, system gains are redistributed to traders through market maker bots that are programmed to lose. This means traders must compete amongst themselves for these losses, further increasing liquidity and demand for DGTX tokens, but as a collective group, those traders will be rewarded with however much the market maker bots lose.

Not only has Digitex removed the mechanical edge of commissions that exists on every other exchange, but through loss-making market makers, there is actually going to be a mechanical edge working in the disciplined traders’ favor. Both of these advantages will be more efficiently capitalized on by short term, active traders whose trading strategies will create highly liquid futures markets.

Of course, this doesn’t mean that everyone on the Digitex Futures exchange will make money. Trading is still a zero-sum game, but there will be a much higher percentage of winning traders than exists on other fee-charging exchanges who don’t redistribute system gains through market maker losses. I would guess that probably 20% of traders on the Digitex Futures exchange will be profitable and they will take their profits from the other 80% of traders. 

If we have a million traders on our exchange, that means there could be over 200,000 people around the world who can positively change their lives with financial freedom and a winning mentality that positively affects everyone around them. There are millions of people in this world for whom making just $50 a day from their computer is a life-changing amount of money.

And I’m so excited and grateful to have the chance to create a product that can potentially affect the lives of so many people in such a profound and meaningful way. Thank you all for your continual support! Cheers!

You don’t need real DGTX tokens for trading on the testnet, but if you want to stock up on DGTX at a knock-down price right now amid market conditions, there’s never been a better time. Hop on over to the Treasury now and enjoy a seamless, frictionless transaction with zero fees and zero KYC.

BUY DGTX

Latest News