russell 2000 emini

Discussion in 'Index Futures' started by mightymight, May 15, 2006.

  1. anyone trade russell 2000 eminis? any issues with liquidity day trading these?
  2. mightymight, you will have no trouble daytrading this at all. It's very liquid and very volatile so you can definitely make a lot of money (or lose more) with fewer contracts than with the other e-minis (my opinion).
  3. how much slippage would you figure, close to none? how many contracts with minimal slippage?
  4. tomhaden


    I trade the ER2 up to 10 contracts (usually 2 to 5). Never had an issue with a fill. You can probably do up to 30 to 50 contracts without a problem.

    My trading style/system uses limit orders. So market orders will vary.

    ER2 is very liquid these days.
  5. what do you mean by slippage in particular? I use IB - the commissions are cheap ($2.2 per side per contract), the spread is 1 tick about 98% of the time ( very tight ).
  6. nice, thanks
    what broker are you using?
  7. thanks polpolik, thats what I meant, some people make these assumptions about slippage being these huge numbers that make systems fail, as in $500 per trade or I have heard $40 per contract per trade, a bunch of random assumptions which can add up quickly.
  8. I use Interactive Brokers and use Zero Line Trader as my front end when daytrading the e-minis and ER2.

    Commissions are small enough you can make money from 1 tick... albeit negligible.

    If you bought at 707 and sold at 707.1, you still make $5.60 per contract.
  9. agreed, what worried me was all this talk about factoring in $40 for slippage per trade
  10. nah, unless you're trading 9 contracts, at which point $40 is negligible, you can make money on ER2.

    But quite honestly, It's easy to make money on ER2 daytrading or scalping it but it's very easy to lose money on it, too. I was just looking at my P&L on ER2 and although 80% of my daytrades on Er2 are profitable, the big swings of losses kept my profits at a minimum. That can be attributed to my strategy, too. It's hard to keep tight stops on ER2 when scalping.

    Swing trading ER2 is much profitable for me.

    I prefer to daytrade the YM or NQ. Behaviour is less erratic.
    #10     May 24, 2006