YM. Free data from Tradestation got me started with it and I did all the development work with it. Once I reach a stage of full automation with it I'll look at other things.
The Dow E-Mini YM index.. Here are a few reasons why Alex suggests traders start out by focusing on the Dow E-Mini YM: 1. The Dow Jones Industrial Average (YM) is the most widely watched index of large-cap US stocks followed by the S&P 500 (ES). It is considered to be a bellwether for the US economy. 2. Less slippage. If you get a bad fill on the YM it will only cost you $5/per contract. A bad fill on the ES will cost you $12.50 per contract. This is the equivalent of your broker calling telling you hes charging you an additional $7.50 per market trade. 3. Margin requirements are less on the YM 4. The ES/ER/AB tend to be overly volatile at times. Sudden ramps that pierce through stops are not uncommon. Newer traders can not handle this action. 5. Often times the ES can be used as a leading indicator to foreshadow moves in the YM. We take advantage of this in our trigger system to increase our odds. 6. Please see this video on how trading the Dow YM saves you money. http://www.puretick.com/video/bestindex
A few clarifications would help from an ES trader's perspective... 1. The Dow Jones Industrial Average (YM) is the most widely watched index of large-cap US stocks followed by the S&P 500 (ES). It is considered to be a bellwether for the US economy. The S&P is very close in 'popularity'; however a basket of 500 stocks is a much better bellweather than 30. 2. Less slippage. If you get a bad fill on the YM it will only cost you $5/per contract. A bad fill on the ES will cost you $12.50 per contract. This is the equivalent of your broker calling telling you hes charging you an additional $7.50 per market trade. While the per tick slippage is correct, you have failed to mention how many contracts would need to be traded in order to see slippage on the respective markets. Any idea how many you need to trade on the ES to see slippage? Now compare that number to the YM. Go ahead and drop a 50 or 100 lot on the YM and see how that small $5/tick slippage really works. And of course if you are not trading enough to worry about that slippage, then there's no advantage to the YM. Don't 4get - that $12.50/tick is very nice when you are CORRECT. If you are afraid of losing, than only losing 5 bucks a tick looks attractive. 3. Margin requirements are less on the YM Not a big deal unless you are trying to trade your way to millions with a $2500 account. And even then the difference in intra-day margins is negligible. 4. The ES/ER/AB tend to be overly volatile at times. Sudden ramps that pierce through stops are not uncommon. Newer traders can not handle this action. BULLSHIT. The ES can be argued as the most efficient and LEAST volatile of all the markets you have quoted. The ES has too many professional players for there to be these 'sudden ramps' you talk about. Very inaccurate information. 5. Often times the ES can be used as a leading indicator to foreshadow moves in the YM. We take advantage of this in our trigger system to increase our odds. If you can use the ES to trade the YM, more power to you. 6. Please see this video on how trading the Dow YM saves you money. http://www.puretick.com/video/bestindex That's funny- how you 'save' money... Here's some other thoughts: 1) If you are confident in your trading, why would you WANT $5/tick vs. $12.50? Makes no sense. You need to make 2.5 ticks in the YM to equal one ES tick. 2) If you can/plan to trade any size, you'll quickly find out that the YM is very inadequate. There's a reason why the YM has very low volume, esp when compared to the other options available. Obviously PT loves the YM, but it's important to see both sides of the story as many of these vendors conveniently forget to do.