mini russell 2000

Discussion in 'Index Futures' started by slugar, Dec 16, 2012.

  1. slugar

    slugar

    Does anyone trade the mini russell 2000 and if you do do you have issues with slippage? Also some people say to stay away from the es what are your thoughts?
     
  2. I actively trade the Russell 2000 Emini TF futures since its birth and I I've actively traded the Emini ES futures in the past. Currently, I trade the Emini TF futures, Light Crude Oil CL futures and EuroFX 6E futures with no particular preference to one. Thus, whichever has a trade signal...I'll trade it.

    Also, if you're going to compare the Emini TF to the Emini ES...you'll get your own answers about which is better based upon your trade strategy you're using. Simply, backtest your trade method on both and let that determine which one you should trade instead of listening to others telling you to trade one or the other.

    All futures trading instruments have slippage depending upon your size, volatility, type of order, broker platform speed and ISP connection speed. Therefore, until you learn and understand the price action you're trading along with understanding the issues of slippage involving your trading instrument...don't use market orders and trade the minimum size (e.g. 1 contract).

    Reminder: Backtest your trade method on any futures trading instruments you have access to so that you can determine which is the best to trade via whatever trade method you're using instead or relying on someone's opinion about which you should trade.
     
  3. slugar

    slugar

    Do you have any trouble with slippage in the russell since its volume is so low compared to the es or nq?
     
  4. Yes but as stated or hinted..slippage can be caused by various variables alone or in combo and not just for the Emini TF.

    Yet, you can minimize the slippage issues for the Emini TF futures or any other futures trading instrument via the variables I mentioned in the prior reply.
     
  5. slugar

    slugar

    So would the slippage be more than 1 tick on the russell
     
  6. In my experience (daily), slippage in pre-market for russell can be as high as 3 ticks. During regular market hours 1-2 tick depending on all the usual variables.

    During regular market hours I usually enter and exit with MIT orders. At the end of any given day, slippage is mitigated or better. In pre-market I use limits for entry.
     
  7. spd

    spd

    RTH slippage is minimal. A tick here or there usually, a good move in the Russell can give you 30+ ticks.
     
  8. I'm beginning to suspect that they way you've been asking your question is if you're wondering if every time a trade is taken in the Emini TF futures...will there be more than a 1 tick slippage everytime ? The answer is NO.

    Yet, slippage can happen sometimes depending upon those variables I mentioned earlier in my first reply. Further, slippage can also occur in any other futures trading instruments via the same reasons including the Emini ES futures which is one of the most liquid trading instruments out there.

    It's important to remember, the one thing you can control (prevent) slippage is by the type of trade execution order being used.
     
  9. rickf

    rickf

    Only time I encounter major TF slippage is in a fast market when it hits my exit price and moves away quickly....so sometimes on a tight profit target (ie 2 points) on a scalp, I could see much of the gain taken away.

    However, using market orders to exit my morning TF trades has been pretty good IMO. Slippage is a reality of trading, so I just grumble those few times when it happens and just wait for my next trade. It doesn't happen anywhere often enough to bother me, though.