If anyone has read the above article,does the moving average crossover strategy mentioned in it actually work?
For those of you who think tick size on the emini S&P is not that important - read the above from the CBOT web site touting the advantages of the Dow mini. Time for the Emini S&P to trade in .10 tick size
It trends better specifically because no one has a specific advantage over anyone else (other than the size of your wallet). No specialist or market maker priveleges, everyone's on equal ground so long as you have the necessary capital to compete (unless you're a e-local and can see the pit from where you are). Fast fills because Globex is basically an ECN and you don't have to wait for the market maker or specialist. Orders are kept on a machine so the specialist doesn't know he can bust your stop. Locals can go on stop busting, but they can only GUESS where they are, unlike specialists who KNOW. Good tick size because now a single tick in your favor covers your commission, unlike being pennied to death (screw dime ticks). Its all anonymous so there are no axes or big players. No figuring out if news applies to your specific stock, only to the market in general. More possible indicators than general stocks (U/D Vol, A/D Ratio, Breadth, TICK, etc.). Basically its like Nasdaq on speed. Survival of the fittest and strongest. If you can master futures, you can master stocks. Its to the Nasdaq what the Nas is to the NYSE.
IMHO, the most important reason of all - no single or even two stock risk - the only risk is "market" risk. On the other side of the coin, no "leading indicators." nitro