Es & Nq

Discussion in 'Index Futures' started by tradervic, Oct 30, 2001.

  1. tradervic


    Has anyone had any experience trading the spread between the NQ and ES, properly weighted of course?

    I heard that some of the most successful futures traders, the ones that make money consistently tend to trade spread positions across the same and different but highly correlated product mixes. I guess this represents a safer strategy than taking outright positions. There seems to be some promise in this strategy, going to look into it.

  2. Yes it's very doable, but watch out for the divergence. Also
    risk is risk
    . I rather play one contract or two at the most and
    pick a direction. Why do you perceive that it's easier to pick
    the divergence and the nuances of the spread. It's a bear market
    both will go down. I short the spooz and buy the naz or vice
    versa, since the naz always have a worst perform percentage vise
    I would just be very upset for not having a balls to go short period. There is no free lunch in futures.
    Spreads are better with seasonals and bullish spreads where
    you sell the front month and buy the out months but you can't
    do the minis (one month, that's all) spreads are ok for the big
    contract but the execution will be bad/worst -(I think)
  3. Other than tick and trin what intraday indicators can a trader try to follow and successfully predict the movement of the nq and es?


  4. I know this sounds simplistic but I am an addict of tapereading
    and this works for me well. Seasonal, like fridays are selloff days
    monday can be also. I just watch and try to have a feel for it.
  5. But other than S/R how do you know from the tape where to buy and sell? Thanks

  6. You can "feel" the exhaustion point. I trade the big swing days.
    You have a move that you will miss because overnight move
    etc. That move will retrace and than you make a move. You see
    retracement of 30-33 % or more or less. Sadly S/R don't play
    a exact role. You can figure it but it's more exact to watch the tape. Some days like today it moved down in the morning and
    it rallied. Given the past few days you clearly won't fade this
    but buy on a dip. If you are wrong you lose 3-4 point or whatever
    you can stomack. if right you make 15-20 (maybe) tomorrow.
    This is not an exact science or else everyone would be doing it
    (and making money :)
  7. So if reports come out that cause a big gap in the futures you wait in the wings until the move exhausts and the you short it? Do you have parameters that you stay within or indicators such as tick and trin that you are watching as youwatch the futures? Thank you very much for sharing.