Not sure about commissions.
ES is 4$RT and MES is 0.76$RT.
3RT ES and plus are more expensive than 1RT ES + 10MES
You're right in some cases.
EDIT: ES: 4.20 / MES: 0.78
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Hedging ES with MES
- Thread starter Sekiyo
- Start date
Not sure about commissions.
ES is 4$RT and MES is 0.76$RT.
3RT ES and plus are more expensive than 1RT ES + 10MES
You're right in some cases.
EDIT: ES: 4.20 / MES: 0.78
Exactly...
One needs to include the cost of the trade on each side to get a complete picture of the cost for the hedge.
wrbtrader
You don't have to pay for the hedge if you don't take it ..
At the time you want to enter a hedge, close the position, at the time you want to close the hedge enter a new position.
Saves you $7,6 each time you want to hedge (for each ES contract) and will have the same effect on your balance.
I don't see use of a hedge in an instrument that moves 99,99% the same as the position you are opening the hedge against.
Interesting.
98% of the time one can get a much much better avg price on the mes than the es . For a guy with an account under $30k the mes is a much better contract to trade .
As an intraday strategy, as DevBru implies, it is costly, and makes zero sense. You just close and open a new position.
For overnight, there is possibility, but keeping the position and the hedge open indefinitely still would make no sense.
For overnight, there is possibility, but keeping the position and the hedge open indefinitely still would make no sense.
I recently launched an automated NQ day trading strategy and I did experiment where I had another version of the strategy on a smaller time-frame that would only take trades in the opposite direction of the main strategy. The goal was to limit the risk of a uni-directional move against my main position as it uses a very large daily stop. I am not currently using the hedge but I might revisit it at some point.
I would not think that what you are proposing is the solution to your problem, do you?
At the very least, if you "often" take heat after your entries, you might want to reexamine your set-up, right? And if price "most of the time" retraces to your entry, then a scale-in strategy might be appropriate, wouldn't you agree? Have you looked at @volpri's journal? I would start there, if I were you.
Real time example a few mins ago . Es was running . I shorted 3 at 75. It ran to 77.25 . I would have been much better off with 10 at 75,76 and 77. I covered at 71 . I would have had a $150 better entry with the mes than es . Thats $150 vs an $8 in commissions savings with the es. What a better deal? And thats a lame example as many times when we run you can scale every 2 pts
Hahaha.
Indeed a scaling strategy is what I currently use.
Thought about trading 1ES then hedging,
Instead of trading multiple MES.
I’ll have a look at his journal.