Change the tick increment in ES from 0.25 to 0.1

Would you like to see the tick increment in the ES changed from 0.25 to 0.1?

  • Yes

    Votes: 115 52.8%

  • No

    Votes: 61 28.0%

  • I don't care but wanted to click a voting button

    Votes: 42 19.3%
  • Total voters
    218
G

guy2

Do you think that the tick increment in the ES should be changed from 0.25 to 0.1? Would you like the tick increment to be changed?
 
I've been saying it for YEARS, that traders should press CME to use same ticksize for ES and SP (apparently they resist, so that floor traders can arb risk-free between ES/SP)

This is THE SINGLE MOST IMPORTANT issue with ES for several years (since daily range collapsed, i.e. late 2003)

PS: You should give a link to your analysis of edge, so that people realise how much more difficult it gets to play the game when ticksize / daily range is so high. I often wonder if people who don't care about this really trade (profitably)...
 
About 2 years ago, I did a comparative study between the ND and NQ with the NQ also having a larger ticksize than the ND. My trading algorithms always turned in a steeper and smoother equity curve on the ND than on the NQ. I believe that this gives the pit guys a permanent risk free ride on the back of the mini traders by arbitraging.

In spite of the little fellow's belief to have a fairer chance in eminis, this is may only partially true. Nobody ever explained why pit and mini should differ in ticksize. It must have some kind of a reason.

Although I also trade the ES now, I have not done any evaluation of ES mini verus pit.
 
Risk/reward calculation applied to any strategy ,
you can calculate Kelly/Shannon for 100-1000
operations with different tick ,winning ratio
and commissions
 
Quote from candletrader:

It won't make any difference to any non-scalping strategy...

I voted for the 3rd button...
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Why not?

Think of the ES as a market with a spread that is forced to 2.5 times the size of the SP market. So it is forced to simulate a less liquid market.
 
Quote from mtzianos:

PS: You should give a link to your analysis of edge, so that people realise how much more difficult it gets to play the game when ticksize / daily range is so high. I often wonder if people who don't care about this really trade (profitably)...
More...

It was actually the article called "Is Day Trading Gambling?" that had that analysis but you got me re-reading some of my articles to find it :)

I've slotted in a page here: Changing ES tick size which gives a worked example of the difference between ES and SP and I hope to expand on that as I uncover more information - and correct any errors if anybody points them out.
 
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