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Bots in ER2?
- Thread starter Triple X
- Start date
Quote from Triple X:
The ER2 today was very erratic, almost like someone threw a switch and today I'm trading against computers. Anybody else notice this?
It seems that ER2 has been like this off and on for the last 3-4 weeks. Yesterday really had my blood boiling between 9:30 and 12:30. This price action has really been frustrating for me. So much so that I'm really considering ES or NQ. Just take a look at ES over the same time period. Nice and smooth HL/LH compared to ER2. I don't mind a little noise to break the day up but for hours on end is tough.
Quote from larrybf:
i believe the ER has been "taken over " by bots for some time now..( at least 2 months)
Aww, come on. I have hard time believing that. I still think for any electronic market, bots are still the minority even though they are gaining more traction.
The ER2 is neither superior nor inferior to other trading instruments. It has its own place. It's volume is more suited towards smaller size but moves with greater cash volatility per contract than its e-mini counterparts. My experience has been that for every 1 contract in the ER2, I have to trade 2 or even 3 ES contracts to produce the same dollar-based moves.
RoughTrader
I think what is important to realize is just how much of a % algo firms (bots) account for in the index futures game. Last year alone Jump Trading accounted for nearly 10% of the daily volume across all emini products.
That % is significant and will only increase in a liquidity driven bull market. If you factor in all the other algo houses, we are approaching nearly 50% of volume done in the eminis.
If you try and "tick" trade it is impossible to beat their speed and size. However, there are short run day trade patterns that are successful and will continue to work.
That % is significant and will only increase in a liquidity driven bull market. If you factor in all the other algo houses, we are approaching nearly 50% of volume done in the eminis.
If you try and "tick" trade it is impossible to beat their speed and size. However, there are short run day trade patterns that are successful and will continue to work.