QQQ trading

Discussion in 'Trading' started by jmeyer, Jun 9, 2001.

  1. jmeyer


    Anyone trading QQQ in the first hour successfully?
    Very volatile time but movements look like they would
    provide opportunity(using one minute charts with
    e-signal feed to Advanced GET).
  2. I don't much like QQQ. If you daytrade it for 1-5 dollar move it's fine, but you will not be right that much.. For serious money check out rydex funds, it has naz index and sp index 150% of leverage vis a vis dollars invested - no commission (just fund cost which is reasonable) to my knowledge no short term trading fee either. catch is it's minimum $25k - why because pros use Rydex mostly !!!!!

    If this idea is not good trade options on futures at IB or
    e-mini, e-spooz)
    The problem is trading the QQQ is the $10-20 hit you take on
    youe EDAT broker - it adds up quick ;)
    Or if somehow you can trade QQQ at Brown or somewhere for $5 I would take a second look but boy those fills at Brown are questionable at best.
  3. tymjr


    I use to really like trading the QQQ during the opening half hour and I was pretty successful at it. I was relying on something that I felt gave me an edge. I was using very tight stops, which I believe is somewhat unwise given the volatility. It worked for some time but the edge doesn't seem to be as strong as it once was.

    It's an easy place to be eaten alive even if you are careful, but you're right the rewards can be quick and powerful. If you try, be cautious. I've had some straining moments.
  4. I have had limited success with fills going through the specialist at AMEX. They tend to hold your orders, often for several minutes.

    I did a test run about 5 months ago and put in market orders for 100 shares a few times. I consistiently got filled at the worst price within the following one minute interval (with no exceptions). Others have indicated that ISLD provides good liquidity; I haven't tried that.

    I put in the market orders through CyberTrader in case that makes any difference. I don't know if cybercorp has poor representation at AMEX.

  5. tntneo

    tntneo Moderator

    by default Cyber uses AMEX [through ABN]this is terrible.
    Use Island only. There is no comparison. You will get filled in 1 or 2 seconds and little slippage.

    However, it is tough to daytrade QQQ, you probably want to catch longer swings, even purely intraday. Forget about scalping it, it is very difficult because QQQ follows so closely the futures. You would be better of trading the futures themselves [if enough capitalized of course].

    QQQ, Island or Instinet only for trading [Island is best].

  6. kempo


    Over the past few months I have been trading the Q's exclusively. I'm slowly attaining profitability as I learn trading in general.

    The volatility that is seen in the price chart of the Q's is NOT seen in the futures charts. However, the two charts are identical without the longer wicks that are found on the actual QQQ chart. The flow of the futures chart is much smoother. Consequently, I trade the Q's using the E-mini charts without looking at the QQQ chart. I just the check L2 ISLD book for entries and exits.

    I execute all of my trades on the Q's solely through ISLD. The volume has increased dramatically since decimalization as more and more traders work with the Q's,they are very liquid. Fills are virtually instantaneous as described below (I'm trading small shares right now - 200-300). Trading larger shares might get you more partials (at your price).

    To conquer difficulties in execution: On ISLD, you can "sweep" a bid or ask to get in or out of a trade. For example - the best ask is 45.73, and you want to buy NOW- your buy order can be for ANY amount OVER 45.73 and you will automatically be filled with all of your shares. Your buy order of say 47.00 will sweep all shares from the best ask 45.73 and then take all shares from the next best ask and so on, up until your order is completely filled. Vice versa on the bid if looking to sell or short.

    I apologize if the above is obvious, but I hope that it helps. :)