Wall street scalper reveals the BEST scalping strategy in 2025

The perfect scalping strategy ready to use for you. Together with my colleague and friend Serge Hoffman, we prepared a lot of nice content in the art and form of scalping. You will be surprised. We talked about with big traders from the Wall Street. They are trading billions of dollars and they talk to us. We choose the same strategies like you and nothing of it changes in the last 15 years. You will understand all the rules. Very clear and perfect. Definite. From our side, we translated this video with AI because my English is not perfect, but I think you will love it. The stuff inside is amazing. Like it and we like it that you hear us and trust in us. Thanks a lot.

The best scalping strategy on Wall Street. What is actually in vogue these days? What's currently trendy, if you still want to make money with scalping at all. And that's going to be very exciting today. Today I have a great guest with me in the studio again. The wonderful Serge Hoffman, guest partner. Everything all in one. And we always enjoy sitting here together and talking a bit about everything that's happening out there in the markets. There are such incredibly great myths out there. Just today I had another conversation with someone who told me that he has now discovered the ultimate scalping strategy. He goes short under every low that has formed and then there's always momentum. And he doesn't use a stop either, but he always takes the profit right away. He thinks the hit rate is 99%. Something like that. Great. Super exciting. Serge, why don't you tell us the reality? You've worked there long enough and you know what's really going on.

Well, there used to be some very good strategies, for example, where you would deliberately move the price into a certain zone. But unfortunately that doesn't work anymore and it kept getting patched. But at the moment, what's working really well, not in all assets, but in a lot of assets. Especially for example in cryptocurrencies. Basically that works really well. A thing that nowadays is called or what. It doesn't work as well in stocks anymore, but in, let's say in the crypto markets, it still works very well. For example, front running. I don't know if you know what front running means.

Tell us, what is front running?

Front running is not always simple. For example, if you notice a very large number of contracts to buy that are clearly displayed on the buy side in the order book, or the price ladder, as it is sometimes called. Imagine, then we have some cryptocurrencies on average, always like this. I say to buy 1,000 contacts at every Price level. And then all of a sudden you see instead of 1000, you can then buy 10,000 contacts. That means someone is willing to buy.

Heavily in one price range or in several.

No, completely on one.

So a big order.

Big order, exactly. A big buy limit order. And then it's just really nice to position yourself one or two ticks ahead of that position. Because at first the market always, since many people and also algorithmic systems see that the market usually moves away from it at first. Then it's like this. You position yourself with a very tight stop below this large position and just let the market react to it. How long that lasts, it can happen that it completely explodes and just takes off in the other direction. But it can also be that only brief moments occur, just short movements. So then it comes back there. And as long as this order isn't hit, that is, as long as it isn't executed. So, for example, if there are 10,000 contracts listed and someone comes along and says, okay, I'm going to push into these 10,000 contracts 2,000 or 3,000 contracts, because then it's a sign that the probability of that order holding isn't so high anymore that it's more likely to get eaten up. And accordingly, there's this second approach, which is kind of like hit and run. You hit into the order, you sell aggressively into the order, and nothing gets added afterwards, so to speak. And if nothing gets added, then the order gets eaten up, and then there's a counter reaction, a momentum move to the downside. That's also a strategy. It's basically called hit and run, which actually works very well in such markets. If you want to trade big orders, large orders, as they say, then only this approach. Hit and run. Or do you run against the position? If someone is on that side and they get filled, you place the order, then you go in and buy. Then there's a moment and you absorb it. This is a common strategy, and by the way, it works very well everywhere, even with stocks. But for that you need to be familiar with small sales. So far back then, there was nothing else where you could see in real time how many orders were traded executed, so to speak. And so you can see the flow.

So the flow chart of the transactions that have been processed.

Exactly. So mainly how quickly it all moves, the faster the whole thing moves down. Or blue. Blue or green? Green, depending on the color red or green. And if it's very quickly green, then you can see that it's being bought up very quickly. If it's red, then it's being heavily sold. And with that, if you combine this price letter and the order book, and then there's a nice strategy for stocks. It works too, by the way. It also works very well with futures. It's simple. If you have the vwap, the moving volume average, so to speak, that's an indicator, by the way, if the market moves very far away from such a vwap, so it's really far off, then you just have to look into the order book. And then you see, for example, for example, in the time and sales, that when the market is moving up, it just stagnates, becomes very slow. You see, it's not coming in like bang, bang, bang, bang, bang, but it comes in next. Orders come in after 30 seconds.

So in the end you have to understand the market speed in relation to the specific product.

Exactly. And that's basically it. When you reach a point where you see that the market is somehow coming to a halt, you just have to look into the order book and then you'll see. That's the other scenario, the absorption scenario, where the market starts, a seller begins to absorb everything that's being traded long. And that's the moment when you click in and take a look. And then most of the time, yes, a movement forms back toward the vdwap, so to speak, back toward the moving averages, volume average, where, so to speak, market participants currently feel comfortable. This is a scalping strategy called absorption. That means the market acts like a sponge. So the orders, when someone buys, are absorbed like a sponge. Everything gets soaked up, it gets bigger and bigger and bigger. And then somehow you see that it starts to slow down. The speed of the traded order slows down. And at some point the moment comes when all the buyers say, oh damn, we can't get through. What do we have to do then, so to speak, the sponge has to be squeezed out like water. So you squeeze the sponge and everything flows downward. And that's a principle in the market as well. Then those who bought will start to aggressively close their positions. So in the end, it's actually a great counter setup.

And what I've often observed, especially in futures, is that when we have such absorption, since I already know what you're talking about, the market often likes to take another quick look over there and nothing happens at all. How is that? How do you deal with it? Do you get stopped out then? Or what's the best approach when you see something like that?

No, no, you don't have to get stopped out. Well, it always depends on the scenario on how quickly the whole absorption happens. So as I said, if you see absorption happening at a very high speed and you can see that it's being absorbed again and again and the speed is stable in that sense, then the probability is very high that the absorption won't hold. But if you see absorption and notice that things are slowing down, the whole level is slowing and absorption is taking place, then the market might even peak above it for all I care. The main thing is that you don't see any aggressive buyers there.

So that actually means for someone who wants to learn this, they could just put a vview up on their chart. On which time frame?

That always depends, I'd say, on which time frame you're working with. So if you're scalping, for example, of course not on the 15 minute chart, but maybe on a 1 minute or 5 minute chart. Personally, I like to use the 5 minute chart. I just feel more comfortable with it. That depends on your own preference. But the most important thing isn't necessarily the chart or the price, but rather where exactly this happens in relation to the price. And accordingly, if you're in a resistance area on the 5 minute or 1 minute chart, every time frame has its own resistance zones. That's why people say there's only one way to truly identify the right ones. That's just how it is when you use market profile. But you can also trade using technical resistance levels, so to speak. And you just have to pay attention to what's currently happening in the group.

So I once had a colleague. Sorry to interrupt for a moment. He told me, just draw your line somewhere on your chart. Yes. And you'll see if you can really read the order book. You'll be able to use each of those lines for something.

In that sense, yes.

And why does he do that? Because he simply says that's the moment when I focus. And if you just take the three setups you just mentioned, you have one for trend continuation when the thing breaks. Right. And I think two of them are counter trading setups.

Yes.

And if you just use these possibilities for yourself and train them, then it's absolutely possible, if you have a bit of market understanding, technically speaking, that you can simply pre select these things in a chart, for example, for 5, 6, 7 support and resistance levels, and then train yourself on that. What would you say when markets are currently very stable and trending, or rather in a balance phase, how can people deal with wanting to recognize that?

Well, in a trend it's really simple. We're giving away a bit of an edge here. But okay, in a trend, it's very easy to recognize whether a good trend is developing. It's simple if you just look at the volume profile and a very simple rule. When the market moves up or down, and repeatedly, so to speak, low areas, meaning low volume areas, are created, then it's actually a very good, very good opportunity to join the trend. If you focus on these low areas, pay attention to the fact that there is no longer inactivity between buyers and sellers in those spots. That means, I don't want to go into every detail, but it also has to do with speed and absorption. When the market gets there, it's simply there's no interaction, meaning no real strong action between buyers and sellers, or it just disappears. Then it's a good opportunity, for example, to enter such an area again. And from here you can trade a scalping move or not the same thing. Wait a second. The same thing can also be done in a trend, so to speak, by trading counter to the trend. For example, when it enters a gap, an area of low volume between two peaks, so to speak, when it comes into such a low volume area, and we see that suddenly at the edge or the low of this low volume area, there is strong interaction between buyers and sellers, then you can also, so to speak, scalp this area counter to the trend. You have to keep in mind, that is, it has a lot to do with the speed of the market. That's also a popular, so to speak, scalping strategy.

But let's try to summarize a bit.

Wait, just hold on in balance for a moment.

We'll get to that in a moment. Let's quickly summarize something so that it's reproducible for the people out there, at least for the trend. For now. What would you think if we said you have a market structure, it's currently trending? You can see that maybe single prints have formed. By the way, if there are two, it's always better than if there's only one. And now you use these low volume nodes in the volume profile to see how fast things move when pullbacks occur. So you can then trade trend continuations. That's the first thing. But wouldn't it also be good practice for people, also cool if they put the times and sales next to it to see how quickly the orders are cleared there. That way you have a double opportunity. On the one hand, you learn to study the order book, and secondly, you have the indication of the executed orders where you can see the speed much more visually. I know there's a lot more you can do. But I think for me it helped to first look at the order book and then to look for the relevant interesting levels using the volume profile and then to look at the times and sales, meaning the executed orders. How fast is it right now? And that's an awesome edge.

It really is, honestly.

This way you can keep following trends and always work really well. But I interrupted you. But I just wanted to do that, to use a structure first and now we're entering the value area and then balance.

Balance is a really simple approach. Just the same, it depends, like if you really understand these scalping structures, meaning the short term ones, and how everything is built up, and we've mentioned this so many times already, and if someone has listened a bit more closely then and has dealt with it, they've already adopted their own edge from the market, so to speak. It's nothing else than that. We talk a lot about speed, we talk a lot about liquidity, and we always talk about time. That means when we trade in such a balance area, it's either the upper edge of the value area or the lower edge. The market is, so to speak, in a state of equilibrium. And when the market is in equilibrium, then buyers and sellers are both present. And now you simply have to figure out and see what happens, what takes place at the lower edge, all these balance areas. So a sideways phase. Because what does the market look like when it moves downward? Now, is the market traded more aggressively there or is it traded more calmly? Almost nothing actually happens, hardly any transactions occur. And then if you've been listening to us and observing a bit, you already have an idea of what could happen in such a balance area. In a balance area, the market is in equilibrium and it usually always moves back to the area enriched with high volume, the so called deep box. And if you notice that there's not much trading happening at the lower edge, or it's happening very slowly, then the probability is very high that market participants are not willing to accept lower prices. So if they don't accept prices going down, where would they likely be willing to accept prices? Well, not exactly, but rather in the upper area. So that's why this low volume or trading at the lower edge could in principle also happen at the top. Just the opposite. And then there are of course ways to trade the whole thing as a breakout. If, for example, the price moves downwards and quickly becomes active, generating trading volume, then there is acceptance there and the probability is very high that it's more likely to be a momentum breakout. And that's when you can use the usual scalping strategies, which you would approach quite differently.

So basically you've now explained almost all the scalping strategies I use today to make things easier for myself. And I think that's awesome because I can tell you, a lot of people out there make a huge fuss about all these things. If you simply practice the topics you've just mentioned, you'll already gain tremendous value in that you'll develop a much deeper understanding of the market in the moment. And this real time market understanding helps you incredibly to manage your risk much better.

You need the timing.

Yes, especially the timing and the risk, but also because you know exactly when the market is picking up speed again. Yes, get out. Especially with a counter trading strategy like the one you just described. And these are such simple things. Why is it that so many people aren't able to make money profitably with this?

It's always difficult. Sometimes it's also because they simply can't process the data quickly. They're the calmer types. It's always different. It could also be that they're just not the type for fast markets, but rather for slow markets. And furthermore, it's simply that.

Certain knowledge is just missing. It's not just that if someone is really fast, it always leads to a breakout or something like that. There are also certain other combinations that we can't go into right now, otherwise we could talk about this all week.

You can do that, but I'll be off then.

But it's also dependent on the situation and the type. Everything really. So whether what he sees actually suits him as well. But nevertheless, I always say no matter what type you are, you should still take a look at the markets and get to know the movements. How does it move as well, for example, for a swing trader, just by observing everything, by watching the speed and where the volumes are generated, he can figure out where he might want to enter, place the trade, and then it's eyes closed and just go through with it. After that, he doesn't need to look at the order book anymore because otherwise he'll keep finding situations that go against his position, where he'd feel he has to close it. But then you're completely in the scalping area again and that's not the point of it.

But look, for example, this is how I do it now and I love it. I prepare my levels where I see a setup, a counter trading setup, a breakout setup, or a trend continuation. And in the end, if you use these models, you're presenting only at these levels and maybe combine that with a smart setup that you can see technically. What would you say? Do you have a higher probability of being right with your trade entry this way?

Actually, yes, a very high one. Very high. But it depends to also your step, your trigger, when you exit, how long you want to hold the trade.

It. It doesn't matter anymore. If I. Just for the moment, it's just a moment, it's high.

So, for example, yesterday during live trading, because I did a bit of international live trading yesterday, I talked about that, about the book, because everyone really wanted it. There was a situation like that. So as I said, anyone who knows me, everyone, I like to play, or I used to like playing. These days, not so much counter strike. Then I always try to really explain things visually using the situation at hand. I said, guys, I'll show you a super strategy that's based purely on speed. With it, you have a very high probability. It has hit rates where you could basically fund your account. It's super, super simple. Actually, I can fund the account in a single day. I said, okay, I'll show you. Then we simply proceed with the next step. I like to use the NASDAQ for that. Then we say, now we're going to play counter strike. It sounds silly. And people say, that's gambling. No, it's not, because I know what I'm doing there and I pay attention to which situations I do that in. And when it happens, the market has been moving sideways a bit lately. Now, if you watch, there were always these small sideways ranges sometimes breaking out up or down. But you could observe those sideways ranges really well. So I said, let's wait now. I'm a sniper now, and I'm waiting for my headshot. I said, I want to take a headshot.

And there I simply showed you a strategy that's based on speed. We're going to wait here patiently. Frankly, we don't give a damn, to put it bluntly, about where the market is moving right now. We're waiting for a situation where the market shows a certain calmness, a certain amount of action, and then I pull the trigger. And that will be my headshot. And then I say, that's how you can really grow your account. And we waited that, and I waited a long time. But then it happened and the timing was perfect, and I pulled the trigger. So I took my headshot and the market completely crashed down again. And with that, the counter was basically secured. That was the principle. So the hit rate in the first moment is actually high. If you focus on it. Precisely. But it's not like you just sit down and watch every market. No, you have to specialize in certain markets.

That would have been exactly my next question. Maybe I can elaborate on that. What would you recommend in which markets should you start to observe something like this more in fast ones like Nasdaq and the like, or rather in big markets, for example, like Google.

That also depends a bit. Well, I would say.

You need a certain kind of speed. The faster the market moves, the easier it is to see where the market slows down accordingly. It's also good to sometimes look at faster markets. If the markets are too fast, you'll get dizzy just watching them. So don't start with the Nasdaq. That's not meant for beginners. But for example, the S and P can sometimes be fast, sometimes slow. You can observe the movement very nicely there. Where does the market pause? Does it stand still for a few seconds? And then you see, watch, observe what happens. It stays still for a few more seconds and then there's always a counter reaction. How far it goes, we can never say with absolute certainty, but we do know certain indicators. If we add the volume profile, then we have a rough idea of where it might go with the highest possible probability. But that's such a good market to learn from. But if, for example, you want to learn things like absorption, where the market pauses at certain points, for instance, and like a sponge, it soaks everything up. For that, liquid markets are much better suited, for example, Bund or stocks, for instance.

That's really boring.

It is boring, but you can really observe very well how the market actually demonstrates this principle of absorption. Yes, sure. With the S and P, for example, that can sometimes happen so quickly. That's just difficult if you're a beginner. But you can really observe the speed very well there.

So you are 100% of the opinion that if you really dive into order book scalping, you should first choose individual markets for yourself and study these markets. Because the speeds, the size and so on, you have to know all of that.

You have to be able to adapt. So if you get into a Porsche, you also have to know how fast it goes when you hit the gas and when you need to brake. Yeah, exactly. Or if you get into a Ferrari instead. If you compare a Ferrari and a Porsche, they're both fast, but with the Ferrari above 140, there's no longer this. What's it called?

Lane assistant.

Exactly. That's not there anymore in a Ferrari after 140.

What?

Yeah, a lot of people don't know that it just stops. And if you then, you know, do that with the thing. Yeah.

So now you're a Ferrari driver?

No, but I know a lot about speed.

Yeah. Very cool. Serge. I think it's super interesting what you've shared today and I think it can really help you out there a lot. If you train this. When do we start training this? Our virtual training office will be ready by the end of November. What would you feel confident doing?

How many hours a day could you imagine doing these sniper sessions for people, for getting an idea of what kind of knowledge is needed for all of this?

Well, it always depends. It depends on the market. You can't skate every day and trade every day, so to speak. But when the market is active, I can spend hours in there sitting.

That's what I wanted to hear.

So sitting there for hours and actually doing it all exactly like yesterday. Like yesterday. Instead of one hour, it was three. But okay, it was fun.

You love the markets.

True, I love the markets. Especially when the markets are live, especially when there's action and especially when the right questions are being asked, then it's really fun and then you can explain it well too. Yes. As I said, basically, if you really understand the speed, the volume, so to speak, time, price, volume and the speed, if you take these four components, then you have a very, very, very big advantage over others who are now also have good strategies. But if they combine these strategies with these four components, time, price, volume and speed, and add bomb proof strategies, then it's very, very, very good. And for scalpers it's a must. So for scalping, it's not enough to just watch some chart.

That'S possible. I'm not saying it's impossible, but why would I need to watch a chart? If I can go and be right in the middle of the market and be completely in the thick of it, like standing right in the middle of a bazaar and you can observe all the noise and shouting and thus act right in the middle of it instead of just being on the sidelines. And that's the whole principle.

But let's quickly summarize again. Just this week and also last week, I had calls with people from overseas who already, for I don't know how many years, have been working in big institutional trading firms. They do hedging so they scalp in order to hedge options positions. I found that very interesting.

I used to do that too.

Exactly. And what I thought was great is that nothing has changed. He told me the concept is exactly the same, one to one and Nowadays we always hear about the algos. Now the AIs are coming in and artificial intelligence and all that stuff.

There are just strategies that don't work so easily anymore. Sure, that's true, like flipping strategies and things like that. For example, front running as well. At the moment it doesn't work for all assets. So this front running doesn't work for all assets. But for example, hit and run, you have to adapt a bit and you need to know when these work and when they don't. But the principle of it all is the same as it was 100 years ago. Supply, demand, speed, that's all the same. The only thing that's changed is the execution. It's just different now. That's also the implementation. Sometimes you're just. You simply don't get executed because the algorithms before you are just much faster, have much better connections and all that comes with it. But we don't want to compete with algos, so we earn money accordingly. And if we recognize and take advantage of all this, then sometimes it doesn't get executed or the market moves away, but that's not always the case. And then you just have to say shit happens and not chase after it. Just let it go and wait for the next headshot. It's that simple.

Very good. I think that was the closing statement. Let's wait for the next headshot and engage with the topic. It was a huge pleasure for me again and maybe a final word from your side. And yes, it was great with you.

Again, one more request. YouTube. Please don't ban us because of headshot. We don't want to kill anyone, we just want to trade.

So thank you very much.

Thank you.