emini Crude and Natural Gas

Discussion in 'Commodity Futures' started by tradermaji, Jun 16, 2006.

  1. Is anyone trading these beasts? What kind of size are you trading? What kind of slippage and fills are you getting?

    These seem to be interesting markets to explore.

  2. They've been available for awhile - no problem trading either QU and QH are a lot thinner but tradable with limit entries. Best of all, the full size just became available electronically last Sunday night - a bit thin though. I'm only trading half a dozen cars or so but higher volumes don't look like any problem if you look at the depth on any ladder.
  3. Trading natural gas is not for the faint of heart. For sure. It is the most volatile commodity on American markets. 5% moves in a day are not uncommon.

    According to some, natural gas right now is cheap, compared to crude. Sometimes when it gets really cheap, I like to buy ng and sell crude. For the e-mini, I buy 2 natty for every crude sold.

    As for executions and liquidity, I have had no problems with either. When NYMEX did it, there were complaints on ET.

    Good luck.
  4. Thanks guys.

    I am looking at some day trading strategies that seemed to work on these markets. However, they enter with stop orders and that is why I am skeptical.
  5. Short term trading with stops, imo, would be hard to do on NG. There are some huge gaps on NG, and you would have to take major slippage into account if you were backtesting some breakout strategy.

    In the long term, though, NG has tended to trend well. Not that it will in the future, but it has in the past.

    Fundamentally, NG is cheap, compared to oil and even coal. I would be wary about going short on stops at this level, esp during hurricane season and the winter season. Compared to December NG, July had been dirt cheap, until yesterday.

    FYI, I sold my NG yesterday around 7.05 (July contract).