Years 2005-2006 for ES Trading

Discussion in 'Index Futures' started by gmst, Jan 27, 2013.

  1. gmst

    gmst

    So, in backtesting I always see that all my systems fired very less number of trades and made very less money in 2005 and 2006. I was not trading then.

    Any long term trader can confirm if 2005-2006 was a very different market to trade? And it was almost impossible to make any money in ES those 2 years.

    Thanks if anyone can go back in the memory lane and confirm for me.
     
  2. It was a time of brutally low volatility.
     
  3. i love how ppl that got lucky in 2008 complained of the low volatility in the POMO-rallies in 2010 and 2011.

    it makes it obvious they didn't start trading until 2008.
     
  4. I started serious day-trading in 1999 and can tell you firsthand how eminis trading, ES specifically in 2005 - 2006 really was.

    It sucked. Horrible day-trade conditions, VIX levels at 11 and 10, intraday ranges of 5 - 6pts sideways chop, sometimes entire week ranges never broke 10pts from low to high thru five full sessions.

    No volatility, no range, no movement other than total chop thru buy or sell stops at least half the sessions if not more during most of that period. Feb 27th 2007 broke the malaise when Maria Bartiromo interviewed Ben Bernanke for the first time, and markets cratered off his remarks.

    Anyone who tells you they made big money or even good money trading ES intraday during that stretch of time is a bald-faced liar... at best.
     
  5. gmst

    gmst

    AustinP,

    That is very useful information for me right there. Your comments give me confidence that my strategies are robust and just that they did not have enough trades and did not make much money in 2005-06 was due to market conditions.

    All markets go through different phases and I think this is one of the big reasons for trading multiple markets - so that when a market goes through a very tight consolidation phase for sometime, some other market will allow making some coin.

    Btw, great to see that you remember the exact date 27th Feb, 2007. So, what did Uncle Ben actually say on that date, if you want to go down the memory lane?
     
  6. So, how would you compare how price action has been lately in the ES compared to 2005-2006, there is absolutely no volume in the ES after 10.30 AM everyday in 2013.
     
  7. Not true.