Es & Nq

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.


Tradervic

 

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)

 

Other than tick and trin what intraday indicators can a trader try to follow and successfully predict the movement of the nq and es?

Thanks

~EC

 

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.

 

But other than S/R how do you know from the tape where to buy and sell? Thanks

~EC

 

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
Cheers

 

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.

~EC