Hi, Just wondering what your thoughts are on which is better to trade. Let's assume you have a decent size account, which market do you think is easier to trade. I have notice this year that the volatility on the forex markets has really contracted. Avante
1) trade the higher vol product 2) trade that product which you can better characterize for which you have better understanding 3) you can also trade both in tandem it will take months to years before you turn profitable
Both are zero-sum before trading friction is taken into account. The friction will force you to lose in the longer-term. The only way to make money is to find an edge, use it for a short time and get out as soon as you can. If you got no edge you will lose steadily. See this excellent analysis for what happens to those ES traders who have no edge for friction as low as $1 per contract. Not even luck can help as all traders without an edge lose it all. This market is not forgiving anyone for mistakes. EOD forex is a little better imo. Intraday it is worse than ES because you trade against the market maker. I think forex is for hedging not for speculation. If you try to fight the hedgers you have small chance to win.
Easy answer... Backtest your trade signal strategy on the forex instruments you're interested in trading and do the same on the Emini futures instruments you're interested in. Let your trade signal results determine for you which specific trading instruments are the best to trade. In fact, I recommend you only trade the top three trading instruments that had the best backtest results. Simply, your backtest results will greatly outweigh the recommendation of any anonymous forum member that is using a trade strategy and trading plan different from you. Also, if you're not willing to put in the time/effort to backtest your trade strategy...why bother trading ?