E-mini S&P Morning Volatility Scalps

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Afternoon traders, notice on this chart the key morning support and resistance areas marked up. These are examples of what we call in the Protégé Class a ‘Volatility Scalp’ off BZ/OZ Support or Resistance. Keep in mind that we do not teach what I call ‘Inverted Ratio Scalping’ which is simply stated risking more than your potential reward…we’ll leave that to the market makers. Each Volatility Scalp has a unique percentage of market volatility to capture in addition to pattern confirmation to qualify.

For those of you that scalp with inverted ratios keep in mind the requirements for extreme levels of accuracy to maintain a statistical advantage. Highly accurate trading is possible (65% plus), but during an equity drawdown the stress level increases dramatically because of this inverted approach. Having seen many track records I can say the quickest way to attrition is to speculate with an inverted ratio approach. Work towards quantifying likely natural targets for each directional trade set up you enter, and apply a consistent exit mechanism to capture.

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