Trading YM

Discussion in 'Index Futures' started by newguy05, Feb 19, 2008.

  1. Hi couple more questions about YM, being playing with it for a good 6 days now.

    1) Do most of you use market or limit order? I am having trouble with inputting the limit order fast enough to keep up.

    2) Does YM peg to the dow-30 all the time? Would it be beneficial to have the 30 dow stocks open in another window and try to find opportunities where the dow stocks moved but the YM hasnt yet?

    3) Is 1-2 point scalping feasible with YM? or do most people not bother scalping YM?

    thanks
     
  2. what are your setups???
     
  3. 1 or 2 points? NO! You're risking a lot in order to make a little. Focus more on the "multiples of 5 and 10" for trade setups.
     
  4. Does your broker have a DOM or ladder trader? To enter a limit order you just give a nice single click at the price level you wish to enter a limit order for. It's nifty!

    G

     
  5. I use ninjatrader with zenfire feed. The problem with ninjatrader is you can click "buy bid" "buy ask" "sell bid" etc...but most times i want to place a limit order that's not the bid or ask. Then i have to manually type in the limit number or use that tiny up/down arrow to scroll through it. By the time i am done, a lot of times the price already touched my limit and went down again.

    Can someone also answer the dow-30 question, is it useful to also monitor the dow-30 stocks and try to find some lag between the dow-30 move vs YM? based on your past experience.

    thanks
     
  6. Doesn't sound like you are using the "static dome" feature in NT.

    File > New > Static SuperDOM gets you there. Easy to preset limit orders at any price level you desire
     
  7. Gord

    Gord

    I don't trade YM but the equivalent ETF - DIA. I had the same sort of question and started a thread on it. After four days and over 150 views no one has responded, so I don't think anyone has made the comparison. So I did. I posted my results in the thread. You might find it interesting.

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=117910

    If you make your own comparison please post it on my thread - I'd be interested to see your results.
     
  8. nkhoi

    nkhoi Moderator

    yes, but you don't want to monitor 30 stocks, you want to monitor $TIKI instead.
     
  9. thanks guys!

    1) nkhoi, what is $tiki in ninjatrader? Is that just an index for the dow 30 stocks? i tried searching for that keyword but cant find anything. I am using zenfire future feed from mirus trading, does that contain $tiki data

    2) have been using the superDOM to look at the price actions, but didnt know you can just click on it to place orders! that's freaking sweet!!!

    3) i am surprised noone really tried to experiment the relation between future vs underlying. Will definitly post on your thread gord if i find anything, but may take a while to reach any meaningful conclusion though.

    Time to replay today's market, what a great way to spend the evening :D
     
  10. "Hi couple more questions about YM, being playing with it for a good 6 days now.

    1) Do most of you use market or limit order? I am having trouble with inputting the limit order fast enough to keep up."

    about 70% of my trade entries and exits are limits.

    "2) Does YM peg to the dow-30 all the time? Would it be beneficial to have the 30 dow stocks open in another window and try to find opportunities where the dow stocks moved but the YM hasnt yet?"

    with rare exceptions (very fast market) for short periods of time, the futures have to peg within fair value range to the underlyings or so called riskless arbitrage kicks in.

    since the dow IS the 30 stocks, i personally have found little utility in watching them. i have in the past, but i no longer do.

    i watch a lot of intermarket relationships and internals but not the dow 30

    "3) Is 1-2 point scalping feasible with YM? or do most people not bother scalping YM?"

    even with relatively low commission (i pay $3 a r/t) it's pretty absurd to go for 1-2 ticks.

    ESPECIALLY in this market.

    you have to "math out" the expectancy. if you are routinely aiming for 2 ticks ($10 - commission profit per trade), you are making $6 per winning trade (assuming $4 r/t).

    do the math. where's your stop?

    it's also pretty ridiculous. there are setups in this amrket that routinely net 10-30 pts. if you can't develop a methodology that yields a lot more than 2 ticks, its nigh impossible to be profitable.
     
    #10     Feb 19, 2008