Find the best options scalping strategy

Mightymorphinchris

Active member
Find the best options scalping strategy
In my opinion it would be one that I'd be looking to multiple time frames. The reasoning behind that is if the trend is moving in a direction for a longer period of time then you are more likely to come out profitable. Scalping options can cause you to either make or lose a lot of money really fast (since you'll likely pick options with a very short time to expiration). Because of the high risk high reward setup you want to do whatever you can to minimize potential downside. One of the ways I personally do this is by picking setups that have a potential trend in the direction I'm trading on bigger time frames, that way if I miss my exit on a really short time frame I still have a chance to get out alive without losing all of my money.

So, what does that look like? For me, I enter on short time frames (1m, 2m) when a large time frame (15m) is at the beginning of a trend and I exit when a slightly larger time frame (5m) signals reversal. You should also implement other rules such as what percentage you take profit, if it becomes overbought or oversold on your short timeframe you may want to exit or if the trend reverses right away you'll want to cut your losses early.

Cutting losses early and taking profit appropriately is going to be crucial to your success as a couple of big losses can ruin many big gains and just because you're in profit one minute doesn't mean you'll keep them for long since you have time against you (and potentially volatility) when buying short term options.
 

Similar threads

Top