The current Best Practices for scalping via SceetoBots utilizes:
At least 3 charts:
1 tick range bar chart with just the SceetoBots applied. No other studies should be applied to this chart. SceetoBots running on own chart keeps the bot processing uninterrupted and lean.
View market action on separate charts so that you can update studies as you see fit without impacting the running bots.
Market Context, Order Flow Algorithms, Price Action, and Levels
1 or 2 tick range bar with order flow, price action, and levels studies
>=4 tick range bar with order flow, price action, levels, breach points, and overall market topology
Note - You can use as many additional charts with varying sizes and studies as you deem fit in order to provide you immediate and ongoing information that you deem necessary to monitor.
I use between 2 and 5 additional charts for each market running across 1, 2, 3, 4, 5, & 10 tick range bar charts.
You can download sample chartbooks here.
Contiguously Directional Range Bars - Where the Groove Is:
I scalp ES & GC. It has been my experience that scalping works well when there are directionally contiguous 1 tick range bars, and when 1 tick range bars overlap, scalping is not profitable.
Hence, to have successful scalps, it is imperative that your bots fire when there is a high likelihood of directionally contiguous range bars.
Q: When is the market likely to generate directionally contiguous range bars?
A: After the market has already created a leg of directionally contiguous range bars.
A: After a breach with concomitant order flow
A: In a clean reversal
Q: When is the market likely to generate overlapping range bars?
A: During times when the market is generating overlapping range bars. In a nutshell, if the range bars are overlapping and languishing, expect them to continue to overlap and languish. Overlapping range bars indicates that there is no indication of a strong imbalance between Sully & Demand. For order flow centric bots to be profitable, they must first overcome the bid/ask spread, which in ES is $12.50, then they must be able to pay for commissions, which is +/- $4.00/contract/trade, then they have to sell for more what your bot paid for them - or in the case of short bots, buy back for less than what your bot paid for them.
Overcoming the Bid/Ask Spread
If you are fast, overcoming the bid/ask spread in liquid markets, such as ES, is doable. Using SceetoBots, is in my opinion the easiest, most practical way to be fast.
1 Bar Patterns
2 Bar Patterns
Increasing BP @ Tick of Death Reversal
Known Support & Resistance Levels
Breach Entry Methods
Engulfing Sweep or Engulfing Book Pressure @ Breach Point can indicate follow through. Getting an order into the Limit Order Book quickly is an important part of this method. Having your bot waiting for this signal and then, upon determination of the signal, sending your order to the exchange immediately is critical.
Levels Tool -
Monitoring Size of Inside Bid & Ask -