I wonder what the trading geniuses from ET think is the best performing strategy: trade BTC or ES. And which one has the best risk/reward ratio. I am curious... about the answers. Answers have only value if arguments or calculations are added to proof their statement. I will answer myself later with the added calculations.
Well one would be at 10 ES contracts for one BTC contract for margin requirements. That means no scaling on BTC and that is a pretty large ES size to start. So maybe your question will be more comparative after the Micro BC comes out next month. Each will have its own behavior for day trading. A lot of tactics are dictated by the larger players. Those who move 1000 contracts on ES for example. But an instrument is not a strategy, so this it is not clear what is being asked or if the question is well formulated to begin with. I.e. even the question as put forth has little value because it is ill formed, so your answer my have even less value. Sorry. Feel free to flame away or pontificate to belittle this reply, or not.
I know the answer to a T, but since the OP has me on ignore, I refuse to answer because he's a "cuck", and would take advantage of me and my info. Nah Virtusa...You want answers, then you come out from your little hidey-hole of having people on ignore, and engage in conversation. You BBS wimp.
I think he put me on ignore for posting something mildly sexist. I hear he is an obedient beta feminist cuck, he allows his wife to get banged by real men.
Why only ES? What about corn? Buying corn calls would've been a much better choice this year than BTC.
For the past years (since 2012) I compared BTC and ES (because I trade ES). And in that period I found that for me ES is generating a multiple of profits. Leverage is bigger, frequency to trade is bigger, never any overnight risk and drawdown is hugely smaller (so better risk/reward). So for me it is obvious that ES is much better from any point of view. I beated the BTC in every year since 2012. The only problem with ES is that in ETH you cannot trade big size, which is no problem for BTC.
I would add that on ES, the predictable big moves, are when I stay away (for a short bit), e.g. Fed announcement. The unpredictable big SUDDEN moves are "OK" and I deal. But what about BTC? How are the big moves' predictability? Time frames? Overnight? Multiple news sources or multiple event driven? To me this would be an issue to address in the system and tactics. Seems like BTC in the Micro version might be better for swing trading the larger waves. I.e. trading as a reaction to the large moves in the aftermath. BTC does have some thing like 1256 treatment as a future product, (I think). But monthly rollovers, slippage-spread, suitable fill tactics, and volume would need to be examined. Every system will need to adapt to a new instrument. Or at the very least, VERIFYING, ALL PARAMETERS are suitable. Those who don't do this are not ready to trade, and are doing one of those things that contribute to the high percentage of trader career failures. Adapting-verifying, for me would take some time, so I am pretty sure, I would be sidelines for 6 months as the Micro BC gets going. Thanks for the thoughtful reply on ET.
Nonsense. If I want to invest my money I am only interested in the net profits and the risk/reward. If I can make in product A 50% more profit with less risk, I don't care if that market is 24x5 or 24x7. I noticed that a lot of people think that the best investment is in BTC, but I think it is not. I trade much less hours in ES and never go overnight. But my profits are much bigger than the BTC profits.