1NQ 50pt vs 10NQ 5pt which is more favorable?

P

Pica550

I’m wondering if using 1NQ to capture a 50pt movement is more favorable than using 10NQ to capture a 5pt movement vice versa. Or something in between 5NQ 10Pt. Is there a mathematical/quantitative explanation? Thanks
 
You can only extract what the market offers.
Your trading style and the methods you use will dictate which scenario is more favorable.

Personally, the 10 x 5pt option fits my style and methods... 50pt moves are not always offered!
Your methods should be robust enough to recognize different market environments.
 
Depends how you are entering and exiting in the NQ. I haven't taken a lot of 10 contract trades, but enough that I have only part of the order fill before it takes off, or bounces and then whipsaws back. In the ES it has only happened on a rare occasion that I grabbed a high or low turning point.
 
mervyn said:
5 points in NQ happens more often than 50 points move, the odd is overwhelmingly favored the former.
More...

Indeed. And on a day like today where the NQ ranged like 650 points or so, your 10NQ for 5 points is going to get you stopped out so often you will lose all your profits by over-trading.
 
Look back the past year. Actually any year.
Once NQ makes a major move, which ever
direction it's running between 9:30am
to 10:30 am..it will continue to
run..usually till EOD.
 
1NQ 50pt vs 10NQ 5pt which is more favorable?
----->
day trading vs heavy scalping/HFT which is more favorable?



Your Q looks odd.
You should be asking whether you should be a day
trader or a heavy scalper/HFT trader.
both use different tools/trading strategies

Most newbie day traders will aim for just a point or two profit.
 
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