ES or NQ when starting out?

Quote from Ditch:

YM in my experience trades with a one point spread about 70% of the time. When the market is moving fast, it can widen to 2-5 pts pretty easily. On balance, I think you can figure on an average slippage of about 2 pts, although a good number of your trades will only suffer 1 pt of slippage. So when scalping this gives you an advantage over ES and NQ, as 1 tick on the YM is only $5.

YM also tends to have a little more carry-through momentum than NQ and ES on a very short-term timeframe.
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Ditch-

I completely concur. I trade Nq exclusively throughout the day.
However, I have been monitoring the YM against the movement I see in the Nq. Definitely more follow through in the YM, that you might expect to see in the Nq. However, on a day-to-day basis measuring at a ratio of 25tick YM to 100tick Nq you can scalp yourself silly fading order flow in each direction on the YM.

Don't have a through understanding of market dynamics yet of the CBOT, but the guy I'm training now to daytrade perferred a smaller contract size. So, I set him up on that and he is making consistent money off the YM 1-4 contracts just doing what I describe above.

Today was a perfect example of that relationship. As I look for trading opportunities somedays between the signals I get in trading the Nq, when market velocity decreases substantially. Aka every *ucking day between the hours of 9:00am-11:00am PST, some people call it lunch time, I call it Dead Market.

However, as the Nq is sitting on its hands and not budging in either direction at say a double top with your Stoch/RSI maxed in overbought and higher-reference frame is creating Neg. Dvg., the happy little YM is fading the buyers back down to the mean.

I've been considering trading the YM during lunch in a ultra scalp mode. 1-contract, to get realtime fill statistics accumulated.


Nq's contractionary and consolidation days are cruesome to wait through. Then some dumb *ss drops his *ucking twinkie on the order entry keyboard and you get your head handed to you early in the trading day.


Oh well such is daily trading life...



-momo
 
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