I want to start trading the mini index futures, but only want to start with one and make that my entire focus. To all of the index traders out there, can you give me your list of pros for your index of choice - Dow Mini or emini S&P. Which has more trading range, more opportunity, more volatility, r/t costs, etc - any and all feedback is greatly appreciated. Thanks all!
If I only could do one emini, I'd say neither of those. Look into emini russell 2K - ER2. Very steady performer on all my systems. http://www.cme.com/trading/prd/contract_spec_ER713.html
In my opinion, the Russell 2000 (ER2) or Nasdaq (NQ) e-minis are much better than either the S&P or the mini-Dow. As a short-term trader, I find the NQ has the best follow-through and least noise of the four, and the ER2 has the most bang for the buck if you're looking for volatility. That said, I know there are a lot of people who like the mini-Dow; however, I find it a bit flaky. The S&P seems better for longer-term trading (overnight) and moving size. Good luck.
I trade them all and a handful of currencies. But I should mention it is all systemized, so what works for me may not be great for others. For example I don't scalp. Just do several-day swing trades. Good trading to all.
Check out this link, sponger. It's a beginner's opening bar breakout system for ER2. The author likes ER2 due to its higher volatility. I've paper traded it some and it's pretty nice. I'm still too scurred to try it with real money yet.
JangoFolly: When you say "flaky" are you referring to the data feed that sometimes goes down? Please elaborate! I traded the YM a few months back but stopped when TWICE in the span of a month, the data feed went down! B
Sponger: I trade ES, ER (sometimes called EB), and NQ. My advice: You shouldn't over-specialize. Sometimes there's action in the NQ or ER but not in the ES! All three are liquid. I made another posting about the datafeed problems related to the YM so right now I'm steering clear of this vehicle.
If you are ready to start trading the mini index futures, then presumably you have a specific method in mind that you wish to employ to exploit your chosen index. If that is indeed the case, then try to ignore the opinions of others regarding specific indexes. Rather, test that method you have at the ready with each of the indexes and see which one seems best suited to your approach. Since different people favor different indexes, it obviously comes down to individual method. Testing your method on each of them should tell you which index you should favor.
There are recent threads on this topic. It basically boils down to you and/or your strategy. For example, lets say your using a particular strategy that exploits breakouts. During your backtesting...YM is the most profitable eventhough you may prefer to trade NQ. Your going to need to sit down and determine what's more important... Profits or Preference. Yet, someone else using a volatility based methodology finds ER2 more profitable even though they prefer to trade ES. I use a volatility base method and because profits is more important to me than what I prefer to trade... I trade ER2 even though I prefer to trade ES out of all the Eminis. Therefore, backtest your method on all of the Eminis to determine which is more profitable to trade. In addition, determine which one your more comfortable to trade. Next, sit down and decide what's more important...profits or comfortability. You'll be surprise at how many traders are trading via preference instead of which is more profitable for their strategy. Edit: I just read Thunderdog's message post. Completely agree. Mark