New technologies and markets allow traders of all account sizes to attempt to scalp short-term profits. Here, we'll examine the performance of a typical strategy, focusing on its implementation, feasibility and potential. We will test the system to see the differences between hypothetical and real trading results. The growth in the electronic trading of stocks, futures and options with its low commissions and speed of execution has allowed market data networks that support high-frequency trading by retail customers. Now, retail can keep pace with the sophisticated institutional trading desk while maintaining the flexibility inherent in independent, small-scale trading decisions. Indeed, high-frequency automated trading strategies - scalping techniques - are being employed by individual traders. Once out of reach of retail, these high-frequency scalping programs are being automatically deployed in the markets. Competition among traders and their trading programs remains, however, and markets have evolved so that it's still difficult to profit on a short-term basis.
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