QQQ vs. ES

Discussion in 'Index Futures' started by AlpineTrout, Mar 7, 2004.

  1. I've traded stocks and QQQ for years, but know nothing about the emini ES. Could some of you consistently profitable ES, day or swing traders tell me why you trade ES rather than the QQQ?
  2. Magna

    Magna Administrator

    If you have traded QQQ successfully, and you would prefer to move into futures, it would be logical for you to trade the NQ (instead of the ES) as it moves in unison with the QQQ.
  3. Sittas


    There are three reasons to trade the es/nq instead of spy/qqq:

    - leverage
    - lower commissions
    - some tax benefits
  4. Leverage, aow yeh? Each NQ contract is equal 800 QQQ
    shares, and in order to scale out for some felxibilty you
    need to trade two contracts, which is 1600 shares and
    need to make a perfect entry and exit each time, other
    wise you get busted in a month.

    But with QQQ, he can play same strategy with 400
    shares (200+200) and make a living until he masters
  5. I'm comparing QQQ to ES rather than NQ, simply because of relative liquidity & popularity. It seems that most of the posts on this site are from traders trading ES rather than QQQ. I trade thousands of shares of QQQ and find it very easy to enter & exit with only a penny or two for a spread. And, of course, no uptick rule.

    Are most of you trading ES simply because you have small accounts and need huge leverage? Sure, the comm. are slightly less, but what I'm really after is what makes ES a better trading vehicle for you? Is it more volatile? Does it adhere to supply & resistance lines better? Does it trend better? Does it lick pivot lines like it actually respects it?

    Why is it your cash cow?
  6. The main reason might be more liquidity and commision rates
    that make it suit better to high volume traders and extreem scalpers.
  7. dbphoenix


    Not only can you answer each of these questions yourself, but you can also determine whether or not it's a better trading vehicle for you, which is all that matters.
  8. nitro


    800 QQQ = 1 NQ
    500 SPY = 1 ES.

    Go and trade NQ first to get a feel for it. Then move to the ES.

    Most of the reasons people trade futures is for the tax advantages and the leverage.

  9. ...one reason to trade NQ instead of QQQ is the "cleanness" of the NQ chart. As it is totally electronically traded, all fills are instantaneously reported and are at the inside bid or ask. IMO this makes S/R and other features of the NASDAQ 100 landscape easier to spot by eye or with code. This is compared to QQQ's bad fills and late-reported trades which clutter up the chart. There is no tape painting at S/R in NQ either (the notorious 100 share trades at QQQ XX.00 or XX.50). Also, simultaneously watching for round number S/R in QQQ adds an extra dimension to round number S/R in NQ. In my experience mechanical systems which work in NQ do not work nearly as well in QQQ, in spite of arbitrage, simply because the QQQ chart is so much more irregular.