<i>"The ES was like this almost everyday in 2003, 2004, 2005, 2006 - most people have been spoiled by the increased volatility over the past 12 months."</i> Way worse back then. Traders new to the emini party have no idea what sitting thru a 6.5pt ES total range session (yes, 6.75 hours of a 6.5pt or smaller span) is like. Been there, done that... switched to ER in mid-2004 because of it
I traded spooz back then also at least the spooz had a rhythm to em', no rhythm at all the last few weeks just chop chop chop. I guess vol comes back down for spooz but the treasuries are very violent right now, especially the bondo.
The bots trade the 1000 lots and take profits chopping the little guys and running all the stops. The prediction is in 5 years or less, the large futures markets will be totally computerized and nearly impossible for a discretionary trader. Alot of the trade in the ES is arbing by MM's (GS, MER,etc.) and hedge funds and institutions. It's a tough trade for sure.
that's what they said 25yrs ago... but we are no closer to bot ran market then Jetson's flying car. the market is not perfect. the bots are not perfect. the market fluctuates in disequilibrium, there is always opportunities for the smarter, quicker and faster. there is also opportunities for those who would just sit and wait.
I never really could grasp or understand the whole "bots" taking over trading idea. The only thing bots do is speed up whatever would happen if its actual people pushing buttons. Then they cannibalize each other. What happens when there is no little guys left or 'stops to run' (another concept I dont get). I guess the 'bots' go bye bye when the bot sponsers realize they are losing money at an alarming rate.
I am not getting chopped out (they are not running stops when it stays in a 3-4 handle range all morning) just pissed at waiting so long for a move it's trading like the ZN did from 2005-2007 mid way. I like the programs they tweak out and can't handle vol at least that is what is happening in the treasuries and there are a lot of opportunities; the spooz right now are another story. I make my living as a discretionary trader and think there will always be a niche I can fill. The market may change but the game remains the same. I have progressed from equity futures only to yield curve only and now can trade both and have incorporated some metals and energy into my trading.