Scalpers should place stop-loss orders 1-2 ticks below the recent high, not above it. Setting stops above the high exposes you to a surge of orders during market acceleration that triggers extra losses. This small adjustment helps you exit before the full acceleration phase begins.
A small trick for the aggressive scalpers. There is a way to avoid slippage. Put the stop loss not above the high. Above the high there are a lot of orders and what you see is that market will boom accelerate. You see that the market even if it's a failed auction now is going down, it accelerates. So you lose an additional amount that you can protect. How you can protect them? Just put your stop loss 1 or 2 ticks below the high. So you are taken out before everyone that is— full acceleration takes place. And it's worth it.
