Grain futures vs. stock emini futures

Discussion in 'Commodity Futures' started by Robertwiz, Mar 11, 2013.

  1. Hello,

    Just wondering for those who daytrade grain futures, what are the advantages of trading grain futures vs. stock emini futures?

    Thanks
     
  2. I second this question.
     
  3. You can gain diversification by trading both.

    Grain futures are often uncorrelated with stock futures. So you can gave huge moves in the grains even while stocks are flat.
     
  4. Pretty much this, not to mention they trade better with my methodology.
     
  5. ofthomas

    ofthomas

    real supply and demand... thats the way I look at it... easier to understand for me those market fundamentals... so I can spread it with more confidence...

    just my 2 cents...

    I can understand most CBOT products... so I prefer those instruments...
     
  6. eurusdzn

    eurusdzn

    Where did I get the impression that grains and softs are so specific that you
    Really have to know the markets, drivers, weather, crop reports, world politics.
    Don't you guys use mechanical / automation like is done with ES ?
    Is it a higher frequency of volatility due to reports, surprises, shocks?
    Don't you have to get out of the way of these like Fed minutes etc...
    Seriously what's the difference?
    A standard Turtle like trend following system doesn't care about the fundies and trades
    grains, softs, metals, energy, stock index, fixed income similarly? Or no?
     
  7. ofthomas

    ofthomas

    are you asking a question or stating an opinion? I could not tell from your writing above.

    in the end, it is personal preference... I prefer to know the markets I trade, to have an understanding of why I am making a trade... we are all different, so to each its own...
     
  8. True but as you allude to, most ES traders do not totally ignore related events on their side either: Fed meetings, Debt Ceiling, Apple earnings, Fiscal Cliff, Sequestration ..........maybe they should but most do not.......
     
  9. Do you realize the original teacher of the "turtle" system, Richard Dennis, started out as a grain trader at CBOT in the wild 1970s???!!!!!!
     
  10. bone

    bone

    I personally would not argue with success in anything. If, for example, Sugar on a chart and Sugar in an order book just behaved better to your eye and inspired confidence - then trade Sugar.

    In the end, does it really matter if you average $20K per month trading US Tens or Soybeans or the ES ? Of course not.

    I could certainly empathize with a person's conclusion that a grain modeled better and inspired more confidence than the ES. Would not be surprising at all to me at least.

    To take the point further, some traders might argue that futures spreads model smoother and behave better than flat price outright futures. Hell of alot cheaper to capitalize to boot.
     
    #10     Mar 18, 2013