Like the russel 2000, sp midcap400, nasdaq biotec, etc. I assume the liquity is good for small to medium traders, so why almost everybody trades only es and nq?
People don't there because it's them that do the ain't, but though some try other them and do that eminis.
I thought the trend was the other way around... YM and ER2 are currently the favorites among most retail traders that aren't mechanical system traders. However, among many of the mechanical system traders I know or have read their discussions at forums with other traders... Seems like ES or NQ is still a favorite. NihabaAshi
i trade the er2 for my fun money but because of the liquidity the es is the only contract that i trade for my main systems. i have a really good mechanical/discretionary system for trading the er2 that i trade when i am not tied up during the day. i do this together with some mechanical/discretionary es trades --- but all of my es trading is my main focus {es discretionary & automated}. i feel there is enough liquidity for a retail trader to trade the er2 but you better know what you are doing, or the er2 will move 3 points faster then you can say "what just happened?". the es has great liquidity and you can really grow the size of a good performing trade system with ease --- this i would say is not the case with the er2 at this time as it does have what i feel is a glass ceiling at a certain position sizing level. this is all relative to what each trader feels is "big size" for the account size they are trading. you could trade 50 lots with the er2 and have a decent chance at good exits per your system and trading 50 lots in the er2 profitable is a lot of money on a daily basis --- it just depends on the trader's objectives as to what contract to trade and what liquidity requirements are needed for the growth of a profitable trade system. the biggest er2 position i have ever traded ONCE {LOL!} was a 110 lot and i was not at all comfortable with that much size for the liquidity in the er2 during that time. now a 110 lot in the es is nothing ---- just a grain of sand on the beach. when trading the er2 these days i just never take on more then 50 lots for any one trade and that works for me {usually all my small position trades are 10 lots and the 50 lot trades are only when s/r levels i track are broken}. if the er2 was to grow in size from a daily liquidity standpoint going forward then i would adjust to match the increase in liquidity. i have never traded the YM and i have my hands full already so i probably will not ever give that a try unless things change for the es and er2.