Why ESTX50 smoother than ES/NQ?

Discussion in 'Trading' started by Trend Fader, Sep 17, 2002.

  1. Wondering why you guys think the ESTX50 is a "smoother" futures index than the ES/NQ? Any reason in particular why this is the case?


    --MIKE
     
  2. Pabst

    Pabst

    Dosen't a guy named Trend Fader want a vehicle choppier than U.S. indicies. :D
     

  3. Well.. the smoother the index overall.. the easier it is to pick tops and bottoms.. less headfakes. The ES/NQ is the king of headfakes.

    For example.. if the ES has a massive rally it doesnt just flip on a dime and start retracing.. the ESTX50 glides.. so it can rally hard then turn the corner on a dime w/o headfakes.

    Overall, the smoother the easier to fade.



    --MIKE
     
  4. nitro

    nitro

    Huh,

    I never heard of the ESTX50 - what is that?

    nitro
     
  5. Nitro: Dow Jones Eurostoxx 50 is an index. It consist of 50 big european companies. Futures on this index are traded at Eurex Exchange. Daily volume is about 350k. Each point is worth 10 euros. Estxx futures are traded from 9 am CET to 8 pm CET ( 11 hours ). Initial overnight margin is 3875 euros ( Interactive Brokers ). Daily range: 60 ~ 110 points. Commissions at IB: 4 euros/ round-trip.
     
  6. Ditch

    Ditch

    I've also been asking myself that question. One reason the ESTX50 is smoother, might be that the underlying companies are traded at different exchanges all over Europe. Further the markets in Europe tend to follow the US exactly. The Us-futures don't whip around so much in pre-market hours, so that might be an other reason.
     
  7. Today we had another smooth first 90 min.

    Sometimes it is so smooth you do not even get a good countertrend move to enter.
     
  8. Can anybody post a superimposed intraday bar chart of the ESTX50 & ES? Is the correlation b/w the two always high, or are there periods when they do not correlate well?

    Many thanks.
     
  9. wild

    wild

  10. Right now at 4:32 pm CET estxx50 futures daily vol is 717k.
    3.5 hours to the session close, looks like it will hit 1M.
     
    #10     Sep 18, 2002