dfe

Latest Success Stories from Winning Traders on the DFE

Digitex Futures
• Digitex Futures
July 13, 2020

The entire business model of the Digitex Futures exchange has always been focused on creating more winning traders. By introducing a zero-fee platform powered by the DGTX token, we’re making trading strategies such as scalp trading and swing trading profitable. It was a big vision, but we now know it’s working. Here, some of our mainnet traders share their success stories and insights.

From Investor to Trader

Eoghan has been a supporter of Digitex since the ICO, although he wasn’t a trader back then. In the time since, he spent nearly a year and a half learning everything he could about trading, but he still couldn’t turn a profit using his chosen short-term trading strategy. He explains:

“Using an infamous exchange, I managed to blow up three trading accounts before adjusting my risk level. This brought my win rate up significantly – but to my dismay, I watched as slowly over time my account balance was eaten away by commissions, which hit me particularly hard as an ultra short term trader.”

So for Eoghan, using the DFE, is an absolute no-brainer. But circumstances provided him with an additional incentive. In mid-April, he was put on furlough from his job due to the pandemic.

“I took this as a sign and decided to dive headfirst into trading full time on the DFE – I was determined to never again have to rely on the whims of others to put food on the table. Starting back with a real money account on the DFE, I began with much smaller position sizes, and immediately found myself profitable. Since the beginning of mainnet, I have managed an increase of over 107% on my total trading stack.”

Eoghan is now laser-focused on developing his skills to the point that he can gain financial freedom through trading.

19,000% Returns

Another trade, who chose to remain anonymous, shared this astounding success with us:

 

Latest Success Stories from Winning Traders on the DFE 1

 

From 12,000 DGTX to 2.3 million represents a staggering return of 19,000%. How did he achieve these kinds of results? He has a few tips for anyone wanting to replicate his success.

“The main benefit to using the DFE is the ability to scratch if a trade looks like it’s going against you. Patience is the key, waiting for the right moments to enter a trade, or waiting for a trade to be filled. But always be ready to switch positions if needed. Don’t get too attached to any trade, hoping that it will work out. Admit when you’re wrong as soon as possible, take the loss and move on.”

He also explains how zero-fees can help drive better decision-making when trading:

“Commissions limit what strategies a trader can follow. They can lead to poor decision making. On DFE a scratched trade is a scratched trade. There’s no extra penalty. This can really help psychologically, especially if executing a lot of trades throughout the day.”

From Betfair to Bitcoin

In canvassing traders to share their success stories, we heard from a few people who came to the DFE, not through the crypto scene, but because they had previously used Adam’s trading ladder on Betfair. For the benefit of the uninitiated, Adam used to be a sports betting trader, and he originally developed the ladder trading interface used by Digitex as an app for Betfair users.

Some of the guys using the Betfair ladder were apparently such a fan of it, they’ve now joined the DFE to reap the benefits of zero-commission futures trading.

Paul has been seeing consistent profits of around 3,000 DGTX per day, which he believes could increase even further with the deeper liquidity of more traders. He’s achieved this using the same technique he used with the Betfair ladder – by looking for gaps in the ladder driven by volatility in the spot price.

While he also looks for support and resistance in the one-minute and five-minute charts, he shares Adam’s view that scalping is as much about reading the markets as reading the charts. He told us:

“Scalping doesn’t have to be strategy-oriented trading. You just need to be quick enough and take the loss as quickly as you can in order to be successful long-term.”

Paul also thinks it’s high time that crypto traders start demanding a better user experience.

“I was never excited to trade on crypto exchanges because the UI was so inconvenient. That’s why when I heard of Adam’s plans, I was really pleased that someone who knows the industry is willing to apply a simple tool to enable users to trade the markets conveniently. You know for us Betfair traders, the ladder is well known! And it’s funny that most people in crypto had no idea this tool exists.”

He isn’t alone. Mika is another trader who reached out to us to share his story, who also came to the DFE via Betfair. He actually runs his own Telegram channel now, where he posts his daily trading results from the DFE.

Very much a no-nonsense kind of trader, Mika also shares many of the same views as Adam when it comes to scalping.

“My strategy is simple. I trade small moves and cut losses immediately. No indicators, no charts. With the ladder, it doesn’t matter whether the price is for horse racing or Bitcoin – the principles of trading are the same.”

It’s a strategy that’s stood him in good stead, earning steady returns of around 15% each week.

Watch and Learn

Want to see our mainnet traders in action? Digitex contributor Cryptrader regularly shares live streams of his trading sessions over on his YouTube channels. Here is one from a few weeks ago, where he shorted a breakdown of support with more than 20,000 contracts, managing a smooth entry with ease thanks to the ladder.

As he told us:

“Typically, I wouldn’t be that aggressive. But the fact there is no fees means I can get out at any moment if it appears not to go my way.

Finally, trading doesn’t have to be effortful. Check out this trading success story tweeted by Daniel:

Latest Success Stories from Winning Traders on the DFE 2

If you want to trader Bitcoin futures with zero fees, sign up here and get started today. A big thanks to all the DFE mainnet users who took the time to share their stories! 

July 13, 2020
Digitex Futures

Latest Success Stories from Winning Traders on the DFE

Digitex Futures
dfe

The entire business model of the Digitex Futures exchange has always been focused on creating more winning traders. By introducing a zero-fee platform powered by the DGTX token, we’re making trading strategies such as scalp trading and swing trading profitable. It was a big vision, but we now know it’s working. Here, some of our mainnet traders share their success stories and insights.

From Investor to Trader

Eoghan has been a supporter of Digitex since the ICO, although he wasn’t a trader back then. In the time since, he spent nearly a year and a half learning everything he could about trading, but he still couldn’t turn a profit using his chosen short-term trading strategy. He explains:

“Using an infamous exchange, I managed to blow up three trading accounts before adjusting my risk level. This brought my win rate up significantly – but to my dismay, I watched as slowly over time my account balance was eaten away by commissions, which hit me particularly hard as an ultra short term trader.”

So for Eoghan, using the DFE, is an absolute no-brainer. But circumstances provided him with an additional incentive. In mid-April, he was put on furlough from his job due to the pandemic.

“I took this as a sign and decided to dive headfirst into trading full time on the DFE – I was determined to never again have to rely on the whims of others to put food on the table. Starting back with a real money account on the DFE, I began with much smaller position sizes, and immediately found myself profitable. Since the beginning of mainnet, I have managed an increase of over 107% on my total trading stack.”

Eoghan is now laser-focused on developing his skills to the point that he can gain financial freedom through trading.

19,000% Returns

Another trade, who chose to remain anonymous, shared this astounding success with us:

 

Latest Success Stories from Winning Traders on the DFE 3

 

From 12,000 DGTX to 2.3 million represents a staggering return of 19,000%. How did he achieve these kinds of results? He has a few tips for anyone wanting to replicate his success.

“The main benefit to using the DFE is the ability to scratch if a trade looks like it’s going against you. Patience is the key, waiting for the right moments to enter a trade, or waiting for a trade to be filled. But always be ready to switch positions if needed. Don’t get too attached to any trade, hoping that it will work out. Admit when you’re wrong as soon as possible, take the loss and move on.”

He also explains how zero-fees can help drive better decision-making when trading:

“Commissions limit what strategies a trader can follow. They can lead to poor decision making. On DFE a scratched trade is a scratched trade. There’s no extra penalty. This can really help psychologically, especially if executing a lot of trades throughout the day.”

From Betfair to Bitcoin

In canvassing traders to share their success stories, we heard from a few people who came to the DFE, not through the crypto scene, but because they had previously used Adam’s trading ladder on Betfair. For the benefit of the uninitiated, Adam used to be a sports betting trader, and he originally developed the ladder trading interface used by Digitex as an app for Betfair users.

Some of the guys using the Betfair ladder were apparently such a fan of it, they’ve now joined the DFE to reap the benefits of zero-commission futures trading.

Paul has been seeing consistent profits of around 3,000 DGTX per day, which he believes could increase even further with the deeper liquidity of more traders. He’s achieved this using the same technique he used with the Betfair ladder – by looking for gaps in the ladder driven by volatility in the spot price.

While he also looks for support and resistance in the one-minute and five-minute charts, he shares Adam’s view that scalping is as much about reading the markets as reading the charts. He told us:

“Scalping doesn’t have to be strategy-oriented trading. You just need to be quick enough and take the loss as quickly as you can in order to be successful long-term.”

Paul also thinks it’s high time that crypto traders start demanding a better user experience.

“I was never excited to trade on crypto exchanges because the UI was so inconvenient. That’s why when I heard of Adam’s plans, I was really pleased that someone who knows the industry is willing to apply a simple tool to enable users to trade the markets conveniently. You know for us Betfair traders, the ladder is well known! And it’s funny that most people in crypto had no idea this tool exists.”

He isn’t alone. Mika is another trader who reached out to us to share his story, who also came to the DFE via Betfair. He actually runs his own Telegram channel now, where he posts his daily trading results from the DFE.

Very much a no-nonsense kind of trader, Mika also shares many of the same views as Adam when it comes to scalping.

“My strategy is simple. I trade small moves and cut losses immediately. No indicators, no charts. With the ladder, it doesn’t matter whether the price is for horse racing or Bitcoin – the principles of trading are the same.”

It’s a strategy that’s stood him in good stead, earning steady returns of around 15% each week.

Watch and Learn

Want to see our mainnet traders in action? Digitex contributor Cryptrader regularly shares live streams of his trading sessions over on his YouTube channels. Here is one from a few weeks ago, where he shorted a breakdown of support with more than 20,000 contracts, managing a smooth entry with ease thanks to the ladder.

As he told us:

“Typically, I wouldn’t be that aggressive. But the fact there is no fees means I can get out at any moment if it appears not to go my way.

Finally, trading doesn’t have to be effortful. Check out this trading success story tweeted by Daniel:

Latest Success Stories from Winning Traders on the DFE 4

If you want to trader Bitcoin futures with zero fees, sign up here and get started today. A big thanks to all the DFE mainnet users who took the time to share their stories! 

Latest News

Trading Strategies

Crypto Trading Strategies: The Ins and Outs of Scalping

Digitex Futures
Trading
• Christina Comben
April 2, 2020

We’ve looked at various different crypto trading strategies in recent articles. Any trader in this volatile space has a plethora of paths to choose when deciding how best to execute. Since all crypto trading strategies are different, we thought we’d take a closer look at Digitex Futures CEO’s favorite ones, including day trading and scalping.

Different Styles of Futures Trading

Traders with a high tolerance to risk will look to pursue strategies that may make other retail traders uncomfortable. These can include buying futures on margin or keeping positions (long or short) open for extended periods of time, sometimes even years.

These types of actions can certainly magnify a trader’s profits. But they can also be extremely risky. A wrong call can see them liquidated with hefty losses.

Advanced futures trading styles often rely on hefty fundamental analysis, whereas shorter-term styles such as day trading and scalping look at technical analysis and charts. Of all the crypto trading strategies out there, Digitex Futures CEO Adam Todd prefers scalping as it gives him less exposure to risk but still a good chance of making a profit when conditions are right.

What Is Scalping?

Scalping is the most labor-intensive and aggressive style of day trading. Scalpers look to take advantage of even the smallest of price fluctuations, sometimes holding a position open for a very short time of just a few minutes or even seconds. The main aim of scalpers is to buy low and sell slightly higher for profits sometimes only the equivalent of a few cents.

The name of the game is focusing on reducing losses rather than, as Adam calls it, “riding the winners.” Scalpers will open and close multiple positions in one day with the aim of racking up lots of profits from many places; rather than act on one large swing trend or pattern. Adam explains that in order to be a successful scalper, your trades should be as short as possible: “I discovered that the longer I held a position, the bigger the risk that my position would turn into a loser,” he said.

It’s vital to be disciplined as a scalper and to leave your emotions out of trading. In fact, according to Adam, it’s better if you don’t know anything about the underlying asset at all.

“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.”

Scalping Trading – The Ins and Outs

Scalping requires full concentration from the trader. We’re talking about continuous monitoring of the screens and profiting from even the smallest of price changes. If you’re reading your emails or checking social media, you’ll likely fail to see success. According to Investopedia, scalping is “A fast-paced activity for nimble traders. It requires precision timing and execution.”

Scalpers focus on time frame interval charts like the one-minute and five-minute candlestick charts and look out for certain momentum indicators. These could be the relative strength index (RSI), the moving average convergence divergence (MACD), or stochastic. Price chart indicators are also commonly used to identify support and resistance levels.

One of the biggest mistakes a scalper can make according to Investopedia (and echoed by Adam’s words) is late exits (holding a position open for too long). This exposes them to more risk and can turn a profitable day into a losing one if they get caught out in the wrong position. Since scalping generates high commission fees from extensive trading, successfully scalping is currently almost impossible in today’s cryptocurrency markets.

Want to try your hand at trading commission-free on the Digitex Futures exchange? With the beta version handling insane volume, you can practice your skills on our trading ladder interface and hone your strategy before the mainnet release on April 27, 2020.

JOIN NOW
Scalping on Digitex Futures

At Digitex Futures, we want to see all types of crypto trading strategies used so that we appeal to a wide net of traders. However, one of the main things we are looking forward to when we come to market is to at last stop punishing our most active traders, the ones who provide liquidity to the market with commission fees.

As Adam said, “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.”

Since we will charge no maker or taker fees on any trade, scalpers will be able to enter and exit as many positions as they like. They’ll be able to make a real living out of aggressive day trading without worrying about how much they have to give back to the house.

Do you want to stock up on DGTX tokens ahead of the mainnet launch? You can head over to the Digitex Treasury for a trustless transaction with zero slippage and completely KYC-free now.

BUY DGTX

 

April 2, 2020
Digitex Futures
Trading

Crypto Trading Strategies: The Ins and Outs of Scalping

Christina Comben
Trading Strategies

We’ve looked at various different crypto trading strategies in recent articles. Any trader in this volatile space has a plethora of paths to choose when deciding how best to execute. Since all crypto trading strategies are different, we thought we’d take a closer look at Digitex Futures CEO’s favorite ones, including day trading and scalping.

Different Styles of Futures Trading

Traders with a high tolerance to risk will look to pursue strategies that may make other retail traders uncomfortable. These can include buying futures on margin or keeping positions (long or short) open for extended periods of time, sometimes even years.

These types of actions can certainly magnify a trader’s profits. But they can also be extremely risky. A wrong call can see them liquidated with hefty losses.

Advanced futures trading styles often rely on hefty fundamental analysis, whereas shorter-term styles such as day trading and scalping look at technical analysis and charts. Of all the crypto trading strategies out there, Digitex Futures CEO Adam Todd prefers scalping as it gives him less exposure to risk but still a good chance of making a profit when conditions are right.

What Is Scalping?

Scalping is the most labor-intensive and aggressive style of day trading. Scalpers look to take advantage of even the smallest of price fluctuations, sometimes holding a position open for a very short time of just a few minutes or even seconds. The main aim of scalpers is to buy low and sell slightly higher for profits sometimes only the equivalent of a few cents.

The name of the game is focusing on reducing losses rather than, as Adam calls it, “riding the winners.” Scalpers will open and close multiple positions in one day with the aim of racking up lots of profits from many places; rather than act on one large swing trend or pattern. Adam explains that in order to be a successful scalper, your trades should be as short as possible: “I discovered that the longer I held a position, the bigger the risk that my position would turn into a loser,” he said.

It’s vital to be disciplined as a scalper and to leave your emotions out of trading. In fact, according to Adam, it’s better if you don’t know anything about the underlying asset at all.

“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.”

Scalping Trading – The Ins and Outs

Scalping requires full concentration from the trader. We’re talking about continuous monitoring of the screens and profiting from even the smallest of price changes. If you’re reading your emails or checking social media, you’ll likely fail to see success. According to Investopedia, scalping is “A fast-paced activity for nimble traders. It requires precision timing and execution.”

Scalpers focus on time frame interval charts like the one-minute and five-minute candlestick charts and look out for certain momentum indicators. These could be the relative strength index (RSI), the moving average convergence divergence (MACD), or stochastic. Price chart indicators are also commonly used to identify support and resistance levels.

One of the biggest mistakes a scalper can make according to Investopedia (and echoed by Adam’s words) is late exits (holding a position open for too long). This exposes them to more risk and can turn a profitable day into a losing one if they get caught out in the wrong position. Since scalping generates high commission fees from extensive trading, successfully scalping is currently almost impossible in today’s cryptocurrency markets.

Want to try your hand at trading commission-free on the Digitex Futures exchange? With the beta version handling insane volume, you can practice your skills on our trading ladder interface and hone your strategy before the mainnet release on April 27, 2020.

JOIN NOW
Scalping on Digitex Futures

At Digitex Futures, we want to see all types of crypto trading strategies used so that we appeal to a wide net of traders. However, one of the main things we are looking forward to when we come to market is to at last stop punishing our most active traders, the ones who provide liquidity to the market with commission fees.

As Adam said, “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.”

Since we will charge no maker or taker fees on any trade, scalpers will be able to enter and exit as many positions as they like. They’ll be able to make a real living out of aggressive day trading without worrying about how much they have to give back to the house.

Do you want to stock up on DGTX tokens ahead of the mainnet launch? You can head over to the Digitex Treasury for a trustless transaction with zero slippage and completely KYC-free now.

BUY DGTX

 

Latest News

Cryptocurrency Trading: Great Bitcoin Strategies 5

Cryptocurrency Trading: Great Bitcoin Strategies

Crypto Industry
Digitex Futures
Trading
• Dave Reiter
September 11, 2019

When Satoshi Nakamoto released the Bitcoin white paper on 31 October 2008, he was most likely astonished at how quickly Bitcoin would evolve into a multi-billion dollar trading vehicle. In less than 10 years, Bitcoin (BTC) finds itself on the verge of being recognized as a major asset class within the investment community. Trading volume in Bitcoin derivatives has exploded during the past few years and there are many great Bitcoin strategies to try. In this article, we take a look at some of the main ones and help decide whether they’re right for you. Continue reading

September 11, 2019
Crypto Industry
Digitex Futures
Trading

Cryptocurrency Trading: Great Bitcoin Strategies

Dave Reiter
Cryptocurrency Trading: Great Bitcoin Strategies 6

When Satoshi Nakamoto released the Bitcoin white paper on 31 October 2008, he was most likely astonished at how quickly Bitcoin would evolve into a multi-billion dollar trading vehicle. In less than 10 years, Bitcoin (BTC) finds itself on the verge of being recognized as a major asset class within the investment community. Trading volume in Bitcoin derivatives has exploded during the past few years and there are many great Bitcoin strategies to try. In this article, we take a look at some of the main ones and help decide whether they’re right for you. Continue reading

Latest News

The Top 5 Most Popular Bitcoin Trading Strategies 7

The Top 5 Most Popular Bitcoin Trading Strategies

Digitex Futures
Trading
• Christina Comben
August 30, 2019

If you’re new to the world of cryptocurrencies, you may be just beginning to think about the best bitcoin trading strategy for you. While many people choose to simply buy and hold, you may want to try your hand at day trading or swing trading. Here, we take a look at the five most popular bitcoin trading strategies and which may work for you. Continue reading

Latest News

How to Profit from Scalping: A Winning Futures Trading Strategy 9

How to Profit from Scalping: A Winning Futures Trading Strategy

Digitex Futures
Trading
• Adam Todd
August 16, 2019

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.

August 16, 2019
Digitex Futures
Trading

How to Profit from Scalping: A Winning Futures Trading Strategy

Adam Todd
How to Profit from Scalping: A Winning Futures Trading Strategy 10

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.

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