Is ER2 over?

Discussion in 'Index Futures' started by m.kay, Sep 28, 2008.

  1. m.kay


    I have backtested my strategies on historical data of ER2/TF, have paper traded and now I would like to start with live trading but what I am reading here it is not very wise to even start. I wanted to use volume2000. I would like to ask more experienced traders for their opinion. And if you are still trading TF what timeframe do you use and how succesful are you with TF? Thank you very much
  2. triggger


    PLEASE do not start trading when you ask such dumb questions

    you are not ready, if you decide to trade do only 1 contract or 1 share, and try it like that

    What exactly is your problem, do you fear liquidity drying up

    do you fear price patterns changing,

    what exactly is your problem :confused:
  3. m.kay


    why is it a dumb question? elitetrader is not the only website in the world where you read traders opinion. And mostly people are concerned about er2/TF. they are thinking about trying other markets and that is why I asked that. If most traders move to other markets will ER2 still be tradable? that was my point. And forgive me I am a rookie and ask for opinions experienced traders. no intentions to ask dumb questions
  4. triggger


    ok sorry I am a bit of a hard ass

    if you have strategy that only works on ER. That is a big NO NO

    you need to have strategy that works on anything

    so if you ever need to leave ER and fast

    you just switch to whatever is liquid

    this is all you need to know in that regard
  5. I keep hearing currently TF has some issues with the volume calculations. So if you are planning to use volume charts, may be this is not the time to start.
  6. m.kay


    Thank you. I guess I have a strategy that works on anything is just that I spend so much time backtesting ER2 I hoped to start trading. But I think you right. Its time to test the strategy on anything. Any ideas? I was thinking FESX or FDAX since I live in Europe
  7. triggger


    well I am from EU originally so I guess I am obligated to help :)

    your strategy needs to be effective YET simple enough to be deployed anywhere

    first thing you should know is that prices are prices in EU in China in USA etc etc

    if you have a simple working strategy it will very quickly show itself to work on DAX and FTSE and DOW Jones etc etc

    just pick what is the most liquid one

    In USA we have futures called ES it is so liquid you can freakin DROWN IN IT :D
  8. Dont' be concerned with opinions of others.

    Start with 1 contract only and you'll see with your own eyes if you should trade TF (formerly known as ER2) or move on to something else.

    However, if you decide to move to another trading instrument...

    Make sure you backtest your method or learn as much as you possibly can about that trading instrument...

    All of which you can do on your own without asking a single question via the exchange website, Google search or search.

    Last of all, never get married to a particular trading instrument.

    Thus, always be prepare to trade something else because the markets are forever changing.

    Profitable traders will adapt...Losing traders will not adapt.

  9. lindq


    This is NOT a good time to trade TF, especially if you are new to the instrument.

    Low volumes with the recent movement to ICE and extreme volatility will get your head handed to you. Wait until things settle down.

    As an example, I entered a market order to close a profitable short this morning at 09:29. When the order filled a second later it was 3 points higher, turning a clean profit into a sizable loss caused by a spike. A limit order would not have helped, because it blew past the limit instantly and kept moving.

    This is what you'll be facing until things shake out with TF.

    Appreciate that because this is such an unusual market, your backtesting may not be appropriate right now for TF. This will likely change. Just sit tight and keep learning. And hopefully TF will return to be the excellent vehicle that it was as ER2.

    And to anyone who tells you that you need to work toward a system that covers all instruments, that's sophomoric. There's no such system, and you should continue in the direction of learning one or two instruments as best you can until you gain more experience. You're on the right path. Just be patient.