trading among the indexes

Boomer · Feb 24, 2004

Quote from 50 cent:

I made no statistical calculations, but from days and days of watching and actively trading these contracts, I can say that in general they make more or less equal moves in $ amount (e.g. if ES moves 1 pt., then YM moves 10 pts.). However, favor the strong contract if you're long and the weak contract if you're short (e.g. if nasdaq is weak today, short the NQ and not the ES, it will move more). When all other things equal, ES tends to move a bit more many times.

Also try looking into the ER2 (russell 2k). The volatility is awesome, the moves are much larger. You'll have to reduce lot size because it really moves more. Movements are smooth, with the occasional mad spikes, but usually you can backfill your way out of them (if you have the nerve for it..)
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what does the er2 trade on? and what are its tick size and $dollar per point? thanks....i want to look into it

50 cent · Feb 25, 2004

er2 is the russell2000 (small cap) index emini. tick size is $10, i.e. $100 per index point.

if you are accustomed to trading say 6 NQ contracts per position, start trading the ER2 with only 3. It really moves and provides good risk reward ratios. It spikes sometimes but not too much.

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trading among the indexes

Boomer

50 cent