ES calender spreads

S

Sanfrancisco76

Hi @bone ,

I was binge reading some of your excellent posts and replies on this forum and understand that you're an OG spread trader.

I'm a software developer but receny gotten very interested in all things finance and as such want to get my feet wet in trading.

After doing my own research online I've come to decide that I want to get started by scalping single lot micro e mini MES calender spread futures for 3 points per trade. Ofcourse, I want to start paper trading first and then after 6 months put real money in the markets. Is sim trading possible with futures spreads?

1. To that end, I want to ask you if this is a good idea to begin with? I saw some of your replies where you said it's not worth trading ES calender spreads as there is no edge to be had. Is this true? If so, why? I could see that ES calender spread is very much volatile and easily breaches 10 points in a day in range.

2. Also, given by beginner status, what platform / broker / datafeed would you suggest me given my trading strategy?

3. Also is there a comprehensive modelling course that you can suggest where I can systematically learn futures spread trading concepts and skills?

Thank you very much.
 
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I just meant the simple difference between front/back prices. The variance easily fluctuates 10 points on the daily. What's PA?

Also, I noticed the spread market didn't have any volume for ESH24/M24 calender but there was some volume in composite market. I guess there isn't enough v9lume in spread market to do ES calenders?
 
Sanfrancisco76 said:
Hi @bone ,

I was binge reading some of your excellent posts and replies on this forum and understand that you're an OG spread trader.

I'm a software developer but receny gotten very interested in all things finance and as such want to get my feet wet in trading.

After doing my own research online I've come to decide that I want to get started by scalping single lot micro e mini MES calender spread futures for 3 points per trade. Ofcourse, I want to start paper trading first and then after 6 months put real money in the markets. Is sim trading possible with futures spreads?

1. To that end, I want to ask you if this is a good idea to begin with? I saw some of your replies where you said it's not worth trading ES calender spreads as there is no edge to be had. Is this true? If so, why? I could see that ES calender spread is very much volatile and easily breaches 10 points in a day in range.

2. Also, given by beginner status, what platform / broker / datafeed would you suggest me given my trading strategy?

3. Also is there a comprehensive modelling course that you can suggest where I can systematically learn futures spread trading concepts and skills?

Thank you very much.
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There is no way there is 10 points in the daily range in ES futures spreads, H/M. You're ignoring the mid/mark in r/t and simply looking at last trade dot shots in the back contract. C'mon.
 
Overnight said:
Don't you mean 10 basis points? From what I recall seeing, the PA seems very narrow in scope.
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I was referring to this chart it shows daily range of 5-10 points. Isn't this tradeable? Why not? Sorry, I'm a newbie trying to understand how spreads trade. TIA

upload_2024-1-9_9-35-27.png
 
Sanfrancisco76 said:
I was referring to this chart it shows daily range of 5-10 points. Isn't this tradeable? Why not? Sorry, I'm a newbie trying to understand how spreads trade. TIA

View attachment 331361
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That's how the ES used to look some years ago, with most days ranging 2-4 points (8-16 ticks). It is hideous PA, which is why you need to trade it with size.
 
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