Scientist, you were saying the YM is great for scalping, and I agree, it has quick moves. But the low $/tick value is a bit misleading IMHO because YM just moves faster. Yes, it's $5/tick, but in the time that ES moves 1 pt ($50), YM moves 10 ($50), so I'm not seeing the advantage here. I think YM would be good for swing trading as well. Your thoughts? -Fast
Nor does Globex ... AFAIK Eurex is the only one that has native stops - which is another reason why I'm trading it.
About 1/2 that of YM, but it moves better if you ask me... Doesn't seem as volatile as YM... liquidity is getting better every day it seems...
Yep. ER2 is on Globex and it has some awesome trends. I am moving over to it from ES. Too many traders fighting over the ticks on ES.... Well, gotta go. Getting hungry...
How about some tips on trading ER2? Every instrument has certain quirks; how about ER2? How many points do you shoot for on each trade; how wide are your stops; what time-frames do you watch? Fill us in and we'll in-turn add liquidity to ER2! -Fast
Well, if this were the case, then even better so, not??? I'm not sure if you realize what I'm getting at here. The point, for day trading and particularly scalping, is that the larger the daily tick range, the more opportunities for entry/exit you will get. To visualize this in a rather crass way: Where do you have more opportunities to enter and exit, making money: a) Index with 10T daily range b) Index with 1,000T daily range Getting it? It's not only the sensitivity of entry & exit, but it's also (particularly) the relative distance you "travel" with every tick. You need to understand this, because it's extremely crucial. It's one of the major factors that makes futures more difficult than stocks, for example, which have a tiny tick size, thus zillions of opportunities. Now that you understood this, look at some average daily ranges (in ticks): ES: 40T ($500) NQ: 60T ($500) YM: 100T ($500) These are pretty accurate figures. The $ range is almost the same on all US indices. But the tick range is very different. ES is the toughest to trade, and YM clearly leads the roost here. And here's the king of 'em all: DAX: 120T (~$1,875)
I might try scalping YM over lunch today. In the past, I haven't done so well with YM, but what the hell, it's only money and I'll give it a shot. -Fast
Well, if it's not as volatile, what's the point in trading it? Or do you mean "fast, weird moves"? They certainly don't happen on YM. It's extremely contained within it's range, just look at the 1M, 5M, 15M chart of YM, how well the bars close within each other's range. Hardly any overlap. YM is beautiful to trade IMHO. ER2 will take ages to get where YM is. And don't forget how cheap it is to get a seat for YM/CBOT. Last time I checked, it was something ridiculous like $12K to buy (!) a seat. If you want to buy an IOM for Globex, you'll be shelling out ~200K+ Trading with a seat is dirt cheap. Unless you're scalping, doing serious size, why not trade YM?