Hi, is there a DJIA mini, and does anybody have any experience trading it ? I thought I'd read something about one being on a different exchange ?? But can't find the thread now, does it trade electronic like Globex ? If there is, any info' or links to go to would be appreciated, i.e brokers, charts etc.. Thanks, Andy
It trades on CBOT a/c/e. Nice structure. But it just needs time to build some liquidity into the contract. http:///www.cbot.com
Thanks Have you traded it ? Also is using the DJIA index reasonable for charting to test some strategies ? I couldn't get the link up, I'll try again tomorrow. Thanks again, Andy
no haven't traded it. http://www.cbot.com Not sure on backtesting on DJIA. Maybe one of those system traders can answer that.
"Also is using the DJIA index reasonable for charting to test some strategies ? " Depends on your timeframe. If you are trading 30 or 60m bars, the index would be an acceptable surrogate for developing your trading system. Just be sure to toss in a healthy dose of slippage when you factor in the futures contract you will actually be trading. How much slippage? Depends on your size. Since the cbot ditched the $10 DJ on ace, liquidity has improved greatly on the $2 and the new $5. Plus the cbot has got a couple of firms making a market in those contracts. So if you watch it on ace for a few days, you will see 100+ contracts on the bid/ask, with an 8 to 10 point spread. Inside of that will be a number of smaller players narrowing the spread to as low as 3 points, but only in small size. 1-10 contracts. Unfortunately, DJIA cash is about the only thing you have to go on for system development. Volume in the DJ pit contract and on ace was never liquid enough for a small timeframe chart (5m lets say). Take your time before wrangling the DJ But having said that, the $2 contract does give you a way to play a DJ swing trade while risking little capital. Plus you keep your broker happy, since he will make most of the money on such a small contract. But its cheap education.
With TS6 (Tradestation) I now have Charts and Times&Sales, but cannot trade with IB (no quotes). Spread seems to be 2 to 5 points for YM (YMM02) and enough liquidity to trade 1 or 2 contracts. IMHO Volume is increasing fast, this week I saw a lot of trades with size 10 and more. If you use IB and need Mini-Dow quotes: www.interactivebrokers.com/discus/messages/6/143.html?1020202710
There's two (2) Mini Dow contracts. They both trade on A/C/E which is the CBOT's equivalant to globex. It's the same platform as Eurex. One Dow $5 per point and one $2 per point. The volume is about 4500 for the $5 Dow and 600 for the $2 Dow. The $5 has been picking up more and more volume lately. More info is at www.cbot.com I have a few instructional Dow Videos as well if you're interested. [ads edited]
Hi everyone, thanks for all the info', a great help to at least look at the possibilities. Thanks again, Andy
with the mini dow - is it possible to get in an out of the $5 with say 10 contracts at one price, in the first hour of trading? whats the spread in the first hour?
The spread is about 5-10 points during the first hour. It's not as active until the cash opens. J. Barry