Index Spread Traders

Discussion in 'Index Futures' started by Real Money, Aug 17, 2019.

  1. Overnight

    Overnight

    No way des, they are not allowed to be shown the "return" key until they prove they can find the "any" key.
     
    #51     Aug 18, 2019
    destriero likes this.
  2. REDP1800

    REDP1800

    din't you leave this site>?
    lol.. spoofing is not illegal and it has been proven in a court of law that it is called being smarter and faster than your opponent. spoofing is illegal..LMAO.
     
    #52     Aug 18, 2019
  3. Overnight

    Overnight

    So you now admit that you engage in it, because you falsely believe, through some twisted section of your brain, that duping market observers into playing your hand with deceit in mind is a good thing? Please, just look up the CME rule book. I am sure the SEC has something on this as well. Oi Kvetch.
     
    #53     Aug 18, 2019
  4. traderjo

    traderjo

    oh my head is spinning.. wish somebody show a real world example of this spread working or not working .. RED are you saying that no retail trader can succeed in trading a spread like Es/YM ES/ Nq etc
    yes I now you are going to say " I dont have to prove it to anybody" but to add credit to what you are saying could you please give a clear example? of why it would never work
    I thought many do trade such pairs at retail level

    I can understand if you say a pure Arb spread like 1Sp x 5 ES is not possible for retail trader even using CQG or TT Autospreader but a non arb type spread ?
     
    #54     Aug 18, 2019
    Real Money likes this.
  5. REDP1800

    REDP1800

    I am only saying that scalpin gor day trading this spread in the long run will bring you financial ruin. Spreads canbe traded in a swing for sure with a lot of success if you are good at spreading but the same can be said about trading options on the indexes and day trading indexes. I mean once you pull out the slippage in the index spreads you need a 300 dollar move to make 100 bucks. why not just scalp the index itself. mistakes are not as costly and you know u are filled and where exactly. otherwise you are eyeballing 2 doms 2 p and l s and never really focusing on the task of making money and managing the trade. if you cannot make this work with 1 market why try it with 2!! different stuff works for different people. but I know for a fact that trading this stuff in the mini and the MICRO to scalp will make you RUN back to regualr trading. try it for yourself and find out. u will have a few good days and then a bad day wipes it all out. rinse an repeat that is my point. it works until it doesn't
     
    #55     Aug 18, 2019
  6. REDP1800

    REDP1800

    all spreads are arb spreads in my opinion
     
    #56     Aug 18, 2019
  7. qlai

    qlai

    Yeah, I think @REDP1800 is right about many things here ... I don't know why people get attracted to strategies which require execution quality that will never be available to them. Maybe because it backtests well(due to unrealistic fills).
    But I really like this thread, so would like to hear what others say.
    @Robert Morse and @MattZ , you both liked the original post, care to chime in this?

    @bone , common man, you can comment on uselessness of orderflow, but you can't comment on any of this?
     
    #57     Aug 18, 2019
    Real Money and REDP1800 like this.
  8. REDP1800

    REDP1800

    if you trade this spread in demo you will be exactly what an HFt is ok. you will see your money pile up but when you do it in real life. you will see that you are feeding the HFT all that money you wanted to make. How does the HFT do it? hundreds of millions of dollars just to start the business and then constant tweaking and trading. it is not fair and should be illegal but it is what it is for now
     
    #58     Aug 18, 2019
  9. I started this thread because I just wanted to talk about strategies to manage what I would call 'open position PNL variance' and knowing about these inter-market spreads is useful. Put otherwise, you could say that being flat is very similar to being spread in a very low position variance spread.

    For example, you short 2 NQ, market dips, starts to show reversing, so you long 3 YM. Market gets to a lower high (your still in profit). Close the dow contracts....market resumes bearish behavior.... you get the idea.

    Thanks for adding to the discussion all.
     
    #59     Aug 18, 2019
    qlai likes this.
  10. Another example, lets say the market is starting to consolidate in a contracting range.

    You put on the NQ/YM spread using the 'implied volatility adjusted notional' ratio, check the video it says 2/3. Then you put stops just outside the range on BOTH LEGS.

    The market breaks or rallies and one side gets stopped out. You close the other leg at a profit.

    Thanks guys.
     
    #60     Aug 18, 2019