I would like to start a credible thread on this discussion of trading the S&P400 E Mini Midcap contract. Currently (could someone paste a link to the specific CME article?) the exchange is waiving all fees on trading that product to encourage greater depth and volume. I have noticed the pattern of trades often sweeps the book in the counter trend to the prevailing trend and wipes out all posted orders and ruins what would have otherwise been a profitable trade. I have also noticed that the abuses that occur in trading that product outweigh the benefits and unique features of the product, namely it trades in lag and tandem to the S&P500 Emini contract. I have also noticed that the chart pattern shows incredible multi-point runs in one direction if you can unwisely hold thorugh a full 2+ point runback into your stops. There are a number of things that the CME marketing and trading divisions can do to limit and mitigate these violent swings and countertrend swings, which makes trading the product so toxic. Elitetrader is an excellent forum to make this discussion public and cause beneficial change to be considered, perhaps even achieved and a more moderate trading vehicle stabilized. thought? (serious comments only please)
I just looked at the EMD DOM and the total size was only 16 by 12. It doesn't take much to sweep the book with that tiny size. Trade the EMD contract as it is not as how you want it to be. If you want liquidity, trade the ES.
this would be a good reliable trade, but, its lack of support and participation makes it untenable anyone else having success with the EMD?