Much of this is just common sense. Using a 60 min time frame, compare the pre-market range to the general direction of the previous market. If for instance you are trading the US market, you would do well to look at the DAX, and Stox. Make note of how they open and what they do during RTHs. Then compare to the range and movement of the ES during Globex session. The benefit of doing this regularly is that you eventually develop a feel for where price is likely to go during regular trading hours. Good luck Steve
My advice to you is be very careful with a 50 lot limit in ER2 You could easily lose over 20,000 without knowing what hit you! This is a very conservative estimate!
I agree. ER2 premarket spread is too wide. I brought it up because it was very unusual. Everytime ES upticked everyone tried buying 700.00 in ER2 and 250 kept selling.
Thanks for the word of caution scalper21. I'll be trading the ER2 as part of a basket, rather than outright. Has anyone had any success with this?
Spreading it against ES or NQ? Or is a basket going net long or short all different instruments? Please explain a basket as I am new to trading baskets in the futures markets. I understand buying baskets of stocks, but not basket of futures.