YM -> ER2

Discussion in 'Index Futures' started by steve0617, Oct 3, 2006.

  1. I've been trading the YM forever (and have a leased IDEM seat too) and now after the second total outage in the last six months or so of the ECBOT, I want to migrate away from YM and start trading ER2. Not saying Globex is the end all, be all, but it does seem to be more reliable.

    Of course I plan to watch ER2 for a while then starting trading small to get my feet wet, but I'm looking for any 'characteristics' of ER2 that I might compare to YM to help shorten my learning curve of this new index.

    Anything one could offer up? e.g. lots of false breakouts... corresponds well to ES... seems to lead the other indexes... too thin of volume to trade more than 10 contracts at a throw etc. etc. etc. etc.

    Any and all tidbits would be appreciated.

  2. Why do you want to go from the ym which is only $5/pt to the er2 that is $100? I would possibly look at the nq or the es first. Just my opinion.
  3. I agree except ER2 doesn't trade is whole points - $10 ticks for each $.10 rather than the YM's $5 for each point, but you know that :)

    I'll be adjusting my contract size down to accommodate the increased risk of each ER2 contract.
  4. OK, its just it seems that the natural progression is from the ym to nq or es and then to er2. If you can handle alot of movement the er2 is for you. I started with the es to get my feet wet and now I trade the er2 as well as the other mini's ( except ym). The ER2 is basically the ym on crack. It will move fast (most of the time). That can make you alot of money, but at the same time it can cost you alot of $$. I would watch it for a while to get used to the movements. Most of the time all the mini's will move in tandem ( not all the time though). So if you are successful trading the YM, that SHOULD translate into success on the er2. No guarantees though. :)

  5. <b>273</b> is 100% correct. I primarily trade the ER, and believe it to be the toughest emini of all to master. Once done, it is also the most profitable.

    If I were to pick one emini symbol alone for smoothness, directional swings and deliberate action, it would be the NQ first. NQ is the ER before Jack Daniels is applied :>)
  6. mktman


    Whats 1 pt in NQ worth?
    Tick value?

  7. $20/pt
    4 ticks=1pt
    $5/tick (in case you couldnt do that math there:p )
  8. You can always offset any YM trade with ES anytime you get uncomfortable.
  9. Austin,

    Could you state why you feel that way? That's the kind of specific info I'm looking for.

    Oh, and as a previous purchaser of the CM-PPR method, can I get a discount on the current stuff? :)

  10. Steve, 100% credit of your previous costs years ago are applicable forward.

    More importantly, the ER itself is most dynamic of all emini markets. Traders gravitate to it for the "juice"... ability to make big swing moves several times per day, relative to other emini symbols. It also takes out small stops and/or misses entries on a frequent basis due to the exact-same greater volatility.

    That is the ER's double-edged sword.

    The ER often moves 200% to 300% more total range intraday than the ES-YM-NQ. The swings are exaggerated, too. When entries are correctly hit, profits are big. When entries are wrong OR the market is just flat-out buzzing sideways, the stops are whacked in every direction.

    ER demands more patience and discipline than other symbols, because it will stir up many negative emotions to a greater degree.

    Trades will trigger entries, go a bit in favor, come back and stop out, spin right from there and head off deep into what would have been big profits had the stop survived.

    ER will many times just blow away from an entry signal without filling, or fill one - three contracts on a ten-lot prestaged order.

    Many times it will barely tick your entry signal (per any method) and race off before human reflex can react.


    Meanwhile, NQ will move much slower and give plenty of time (relative) to enter. It will not spike out stops as much. When ER spikes & surges to take out stops, NQ will merely sit sideways in a clear ledge.

    When both head off in favored direction, ER will cover twice the potential profit. NQ is easier to catch signals on full contract positions.


    Bottom line? ER tugs at emotional strings to greater degree than others. I began trading ER in mid-2003 when ES waned, so have grown with massive influx of volume and volatility in the small caps.

    If you apply solid discipline and patience (two big challenges for me) the ER can be very rewarding. I myself use bigger charts (13min filter = 4min trade setup) to sift out much of the noise.

    Hope this helps :>)
    #10     Oct 3, 2006