Discussion in 'Index Futures' started by oldtime, Aug 4, 2011.
Anybody fool around with index spreads?
Do you mean for example:
take long position ES and short YM ? Same expiry for both?
yeah, not sure where NQ fits in, but the reason I ask is because I and the other 50% of us who were long ES 8/4 lost a lot of money.
According to my podunk unscientific research, long ES and short YM gives me a slight bullish bias, with a lot less pain when I'm exactly wrong.
at anyrate, if you want to know everything I know about ES vs YM you can read it here.
Wish I'd known a little bit more about this back when I was scalping ES.
I'm going to order an online article for $3.95 today or tommorrow.
I'll let you know how it goes.
You bought at the beginning of the day and held till the end? You don't day trade?
To get a preliminary 'feel" :
Pull up two price ladders
Take opp positions in ES/Ym. doesnt matter which is long.
After some hrs doing this you might get some ideas abt a strategy.
One nice thing is while you have both trades going you have reduced perf.bond.
Of course when u exit one trade perf bond goes up.
There is perhaps one of the more "risk free" strategies somewhere within trading an ES/YM spread...what are some of the intraday strategies out there? To enter...when etc?
well, there was some scalpng and scaling in and out involved.
I don't recommend it to anybody my age, just a little for oldtime's sake.
Wow! YM has moved up 400 pts tonight as of this post.
Edit....now 500 pts.
well, I must say ES vs YM is a lot of fun. I remember when they invented YM and I took a look at it and traded it a few times and figured, "why bother?"
Too bad I was too stupid to spread it.
As far as I can figure, the correlation is aprox 95%, which means there's almost no way to make or lose money.
You can put it on for peanuts. I'm just a little itty bitty trader and a full load is 5 ES vs 6 YM.
The fun thing is you can violate every rule about trading you've ever tried to adhere to.
My rules are
1. Never add to a winner
2. Always add to a loser
3. Take any small profit
It's just something to do when you're being disciplined in your other positions.
These days my bar is set pretty low, I'm just trying to beat the long bond.
Separate names with a comma.