Do you trade Bonds or E-minis??

Discussion in 'Index Futures' started by UBP, Jan 27, 2004.

  1. UBP


    I'm curious as to what's everyone's rationale for choosing bonds trading or S&P/nasdaq/ym e-minis?

    1) How do you trade these contracts during economic reports. Bonds react more to these release instantly than compared to the e-mini contracts. Do bond future traders sit out right before these releases are made, and do emini traders stay in regardless? How do you trade the reports and releases, basically?

    2) Are both bonds and e-minis liquid without much slippage. Ihave heard the ym is not as liquid, but the 10 yr bonds have no such problem, compared to ES?

    3) ECBOT vs CME?? Any comments on limit orders vs market orders in these platforms? Also, do you use stop market or stop limit orders? i know to many it depends on the antive vs simulated, but my main concern is guaring against violent quick shift up or dwon, and also major news to the market. I remember a couple of weeks the core cpi numbers came out and bonds went up almost a point in less than mniutes. If you were short, would the stops get filled in this quick surge upward?

    4) Bonds seem to trend more longer than the ES/NQ, but with economic reports released, it seems bonds hit the chop right around this time, thereby decreasing profit potential, if you sit out. It seems the major moves occur only from 8:20 to 1:00 EST, and with a chop early due to news, you may lose out on the major trend. Has anyone noticed this? The ES/NQ moves more times in smaller trends, but the moves seem to occur for a longer time frame of potential trading, from 9:15 to 4:00 pm EST... What is better for profit potential?

    5) Do you generally swing trade the ES/NQ, or look at 1 min charts, 3 min chrts? Also, your strategy with bonds?

    6) Any other comments as to your preference of one over the other?

    Thank you for your time and comments

  2. They're all good.
  3. ig0r


    All are good for trading. ZN (10 year note) and ES are pretty good side by side. They are inversely correlated some of the time and in these cases the ES can sometimes tip you off to a ZN/ZB move.
  4. ES and ZN, (and Globex Euro).

    I never have a position in anything during a report.

    Fills are great on both.

    Time frame I use depends on speed of market at the time of trade. I use range from 2 min to 60 min.

  5. Arnie


    I trade both ZN and ES as well as stocks (mostly naz) and find that a lot of times, while stocks will make a morning move and then trade sideways, ZN and ES will trend throughout the day. I usually trade S/R and breakouts of trend lines.
  6. TD80


    I like ES, NQ, ZN, and YM for daytrading futures. I mostly stick with stocks but futures can offer some nice intra-day opportunities. All are quite liquid, however YM does not have the one-tick spreads you'll often find in the other 3.

    Also if I have a bout of insomnia (which happens quite often), I love the Eurostoxx50, Germand Bund, and am currently watching the DAX for future daytrading.

    I tend to shy away from alot of leverage overnight though, I would recommend anyone who is trading futures overnight to get your leverage way down.... I have had bad experiences on suprise overnight news and liquidity droughts combined with high leverage.

  7. Xenia


  8. Great tip ig0r,

    You forgot to say how to spot those times that they are "inversely correlated".

    Thx. anyhow!


    :confused: :D