Could you give me some feedback? As you know 1 nq equals 8 lots of qqq. A basic calculation showed me that at IB (=a US broker) the cost for transaction, b/a spread and slippage of 8 lots of qqq ($29) is slightly favorable to that of a single nq ($34.80) contract: QQQ round trip cost for 8 lots qqq= max $32 and min $29. ========================================== Transactioncost for 1 round trip of 8 lots is max. $ 16 and min. $13 (if not scaling in/out). The average B/A spread of 8 lots of qqq ($1 a lot) is $ 8. Average slippage 8 lots qqq ($ 1 a lot) is $ 8. NQ round trip cost 1 nq=$ 34.80:= ========================= Transaction costs for 1 round trip of 1 nq is $4.80. Average B/A spread nq (about 1 point) is $ 20. Average slippage is (0.5 point) is $ 10. I would like to discuss: a] are there (backtested?) tactics for scaling in/out and/or traling the 8 lots qqq that are superior, in risk/reward, to trading just a single nq contract? b] how is your experience of qqq execution (ibsmart, arca) speed and reliability during normal market hours compared to globex for nq? tax US/non US: because I live outside the US, the favorable US tax treatment of futures is irrelevant to me. Regards
Thanks, with a spread of 1/2 point the cost is now about the same for nq and 800 qqq. This makes the following question valid: Any ideas on how the risk/reward potential of scaling/trailing 800 qqq can methodicaly outweight the trading of a single nq contract?
With the NQ's you get 60% long term, 40% short term capital gains and with the QQQ's you get 100% short term. With NQ's you get to keep roughly 5% more of your profits after taxes. This probably outweighs any transaction cost differences between these two very liquid markets.