YM versus ES fallacy

Discussion in 'Index Futures' started by increasenow, May 24, 2007.

  1. STEERAM

    STEERAM Guest

    yes I like the er2 for that, but the moves where it pops for no reason a few points pisses me off. I am trying to figure out how to manage those
     
    #11     May 24, 2007
  2. I don't follow ER2. From what I have read here, it seems that ER2 has more volatility, but you would do best to check for yourself. I like NQ better than ES due to smaller tick size and what I think is generally better volatility. Further, the NQ's tick size is proportionate to the larger, pit-traded contract, unlike ES's tick size which is proportionately larger. Therefore, I think that ES traders may be at a relative disadvantage to pit traders who can arb ES and SP in a way that pit traders cannot arb ND and NQ. Of course, this is all over my head. I just know that I don't like giving someone any more of an upper hand than necessary.
     
    #12     May 24, 2007
  3. STEERAM

    STEERAM Guest

    I am going to try NQ tomorrow and see how it goes. Is there anything particluar you look for in the nq? I know what I look fro in the er2 but I am sure it wont translate to the nq
     
    #13     May 24, 2007
  4. Because it reminds them of Don Miller...:p
     
    #14     May 24, 2007
  5. I trade NQ largely as I had traded ES. However, if you have not traded it before, you would do well to take it out for a test drive first.
     
    #15     May 24, 2007
  6. STEERAM

    STEERAM Guest

    Maybe I will hop on the sim tomorrow
     
    #16     May 24, 2007
  7. erToo

    erToo

    YM's biggest problem is lack of native stop limit orders. As a result you can get massive slippage on breakouts. Not very friendly for swing or position traders.

    ER2 is the best bang for the buck as mentioned.

    NQ will get better once it recovers from the tech bubble.

    ES - the tick is too wide due to internal CME politics (read link below). All breakouts are faded by the pit arbs due to the monopoly/privledge they gave themselves with a .10 tick size on the pit contract and a .25 tick size on the ES contract. This increases risk for other traders and can lead to choppiness.

    http://www.elitetrader.com/vb/showthread.php?s=&threadid=93275&perpage=6&pagenumber=6

    All can be traded. Pick your poison.

     
    #17     May 28, 2007
  8. agree ER2 is the BEST for tight spread .10 and $100 per point..no other emini comes close
     
    #18     May 28, 2007
  9. TraDaToR

    TraDaToR

    Importance of tick compared to daily range( the most important thing for us ):

    - ER2
    - EMD
    - ES
    - NQ
    -YM


    E mini MSCI EAFE will probably gain volume in the near future.
     
    #19     May 29, 2007
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    #20     May 29, 2007