Is scalping even possible?

kronos

for the past few days I have been testing out different scalping strategies but it seems like the fees the exchanges have just eat away at all my profit and I end up losing everything to the fees. I am using 5m timeframe for entry and exit with 30 min anchor timeframe for trends. Any thoughts?

Gabri

kronos It depends. You should give us some more informations like what is the average payout percentage for each trade, how much the amount of money you put in every trade or if you use a percentage of your capital how much is your starting capital and the risk percentage, how many trades you make in a period of time, avg of loss and win.. and so on. Difficult to say something without more info. The result of backtest should be something but if you have more ..better

Saleh

Which exchange do you trade on? Fees eat profits of scalping strategies really fast. The best exchange for scalping in my opinion is Binance Futures because of the low fees

kronos

Saleh I use whatever exchange I can get backtest data the quickest. Coinbase and Binance have limits on their public apis when I was downloading years of BTCUSD data. I would love to use Binance in live trading but I can't because I live in a state in the US where they are not allowed to operate.

tradeception

That's why P2P Exchanges and projects like https://www.stellarx.com/ are interesting. The only problem right now is missing volume.

laughingwithu

tradeception do you know how they make money? Will have a look

kronos

tradeception Looks interesting, but I don't think trading on that platform right now would be a great idea since as you mentioned the volume is simply not there.

markus

laughingwithu
That's actually a good question. Never thought about that. In the case of StellarX you just pay a neglectable transaction fee.
But StellarX is not really a decentralized exchange, its just a GUI for the Stellar network.

laughingwithu

markus I had a look at this and it seems legit as it's a marketing tool to try and get more people on the network. The guys behind it will make money from their existing holdings as the price goes up.