Imo you are better off trading micro contracts and trading outright holding all day..or getting long es all day and shorting nq all day at certain intervals against it. spread trading can also wipe you out quickly and with no stops you better have self control to exit losers manually and pay double fees everytime a trade doesnt work and 4 spreads..so then add up your ratio..you have what 1 nq 1 mym n 1 m2k..so that is 3 round turns and 6 slippages. so on mini you are at 20 plus 15 plus 30 so 65 plus 12 so round turn just in slippage is 77 dollars!! be wrong a few times during the day and you will think twice about spreads
Future Spread Trading
- Thread starter Junkou
- Start date
ok get it but one can trade this ratio spread by market on both legs in real environment and for that reason Autospreadr is not required .. but I was using it to chart the spread...
assume this is real account my question is
- How to chart it
- Does this spread as a swing trade work not scalping for few ticks but divergence
assume this is real account my question is
- How to chart it
- Does this spread as a swing trade work not scalping for few ticks but divergence
you are dealing with a 2x3 so nq slippage is what..5 buck x4 roundtrip so 20 on the low end lets say 25. and ym is 5 x3 so 15 but lets say its not always 5 points so 5 10 5 is 20 x2= 40 so now u have 65 dollars so micro is 6.50 in slippage. and 5 on fees so 11.50 in slippage per unit round trip. do a 3 lot n your down 34.50. when you start. anyway sure it works about as well as a chart trading outright except when spreading outright looks better and when outright trading spreads look better. sure you can trade these in swing but isnt that what option are for? i mean why not use options and limit your risk instead if futures spreads with unlimited risk..you can buy 3 nq calls and buy 3 ym puts for the same effect except margins overnight are non existant. why not trade it with options the pros do all the time
in futures spreads you always have 1 gain n 1 lose but in options you might get 1 side that screams higher n u will make more because the puts max hurt against u is premium cost not mkt value where futures spread trading is mkt risk. imagine doing it in the vix when at 20. buying front month calls buying second month puts. u crushed it more than any futures spread
Nonsensical.
2MNQ/ 3MYM is exactly equal to 2 NQ/ 3YM.
And yer screwed if the (M)NQ and (M)YM diverge, which they have a tendency to do at times. It can F you at the drive-thru.
Just ignore the noise. Scalpers can't understand the beauty of the spread trading. They are satisfying with a few points while we are talking about a few percentage.
Sometimes I do. If you have ever read my other posts, you will know that I also have market trend predictions. So during the day, I also add some long or short positions depending on the trend. Or if the spread moves in the opposite direction significantly. For example on April 28, NQ dropped about 1.7% while Russell 2000 was up about 5% at some points while I was long NQ and short Russell 2000. So I took the opportunity to add more spread positions (long NASDAQ 100 and short Russell 2000). During the following three days, the NASDAQ 100 Index outperformed the Russell 2000 Index significantly by 3.6%, and I actually made more than the 0.31% as posted.
ignore the noise. ha. ignore how you will do great 8 months out of the year be lulled into the easiness of it all and then get crushed like ltcm when the spreads blow out they always do just as you added your last average knowing the revert will start next tick. i dont think your trading live either which means massive slippage and i find it unusually suspect that you havent mentioned the biggest risk in spread trading...i will ask you what is the biggest risk in spread trading? please no one else answer lets see if this guy is trading live or demo. so i ask you again whats the biggest risk in spread trading
tradingismybusiness..."..when the spreads blow out " and that is what I am trying to find out when it has done so
and when you say "Nonsensical." what you mean... forget Autospreader just trading a pair that is whta I am talking about and that is what Junkou is trading ( I assume live)
and when you say "Nonsensical." what you mean... forget Autospreader just trading a pair that is whta I am talking about and that is what Junkou is trading ( I assume live)