I came across this just now. If it has already been posted I apologize. Video shows worst case loss in exact same move in RUS , ES, NQ and YM on a given day. RUS $370 loss ES $250 loss NQ $193.75 loss YM $ 170 loss Graphs of all 4 are very much the same. It seems the NQ and YM should be given strong consideration for a trader with limited funds just starting out. At least this is the idea behind the video. Play time: 8 minutes 25 seconds http://puretick.com/video/bestindex/ -Stephen
The video is misleading and there's an extensive prior discussion about such here at ET. Simply, it comes down to one thing only. Take whatever strategy your using and test the method on all the trading instruments your considering to trade. The trading instruments that's the most profitable is the trading instrument that's suitable for your strategy and not suitable for the strategy used by someone else. In other words, one trader using one particular method may find ER2 to be the best to trade whereas another trader using a completely different method may find ES the best to trade and so on for YM, NQ, DAX or whatever. Mark
Hi Mark What I got out of it, is that a *series of losses* that would wipe out a small account using the RUS or ES, would not wipe out an account using the NQ or YM. Dang, can't find my calculator. Estimating now, using the NQ as a basline... the ES loss is more than 25% more and the RUS is 80% more, or whatever. I think I got your point. Do you think I have a valid point? RUS $370 loss ES $250 loss NQ $193.75 loss YM $ 170 loss -Stephen
The video is indeed misleading, what the guy does not say is that the reverse of the same would have been in favor of ES. What if you had not made the wrong trade?!!!!..........Daaaaaaaa don't beleive the BS people sell.
Cy M I did take a quick look at the price action at the top(s). All 4 graphs do show very similar price action. This was another thing he mentioned. I don't think a discretionary trader would find any real difference trading any of these, solely from this particular standpoint. I'll have to review the posts here later today so I can better understand these matters. Slippage is mentioned here: http://www.elitetrader.com/vb/showt...&perpage=6&highlight=ym dow tick&pagenumber=1 Spectra wrote: Since the dow is only $5/tick and the ES is $12.50/tick you can expect more slippage $ wise on the ES. The liquidity data of the YM is very low if one looks here: http://www.traders.com/Documentation/FEEDbk_docs/Liquidity/FutLiq.html Later, -Stephen
The guy in the video is telling you in a non direct way, that since you are going to be a loser when you start trading futures, ym is the slow death compared to others futures. Heh he is not totally wrong, this way you can keep paying his course a little bit longer till you are broken. Smart guy! Jokes aside, I think it's not a bad suggestion for someone who's a beginner. Heck ,why not trading SPY or DYA with 100 shares. If you are not scalper, the charts patterns are basically the same. This way you are a step beyond papertrading , and looking at the P/L fluctuation is not going to cause a foggy brain.
Thanks mark1 Just got up so my brain is indeed a little foggy. Trying to understand why these *4* exist. Trying to understand the best answer to the poster's question. I'll keep at it. -Stephen