Why do you say it won’t work? Professionals average in quite a bit. Did you know that?
How the CME’s New Micro E-Mini Futures Might Work to Your Advantage
- Thread starter CaseyB
- Start date
If it does not work in the mini, it will not work in the micro.
I hope you understand what I am trying to convey here.
Whatever you say or believe, I suppose. However, if a trader knows how to do it then it will work in either one. They are the same. One will just be less drawn down in dollar terms.
Don't get caught in the trap. You'll see.
I have been doing it a long time. You just gotta know when to fold and get out and go the other way. And be disciplined to do it. And you got to know what context to do it in. Not every context is conducive.
Then why are you now dabbling in micros, and not the minis?
I trade both. As concerns micro I wanted to test it out and see what a small account trader could do in terms of scalping and is it worthwhile to even scalp it. As you know each tick is a very small profit. So can the micro be used for scalping? So far the only way I have it to be somewhat conducive to scalping is by using averaging down tactics. Some folks on ET have said, or seem to think, it is only good for swing trading. But I have found a scalper with a small account could in fact make money scalping it by using averaging down techniques but only in certain contexts. Remember, a one point scalp is only 5.00 in the micro. So, if a min scalp is 1 point to make it worthwhile you got to be loaded up with a few micros when the move begins in your favor. With the price reversion tendencies of the ES the only feasible way I have found is to load up at cheaper prices as price moves against one’s position. I have tried scaling in as price moves in ones favor and it generally doesn’t work out too well.
So, taking into account the tendencies of ES to revert how could a trader with a 2000 account scalp it’s movements by using the micro and not feel the pressures of a larger drawdown? It is one thing (in dollar terms) for a small account trader to be down 3 points on 3 or 4 micros as opposed to 3 points on 3 or 4 ES contracts before price reverts.
My conclusion so far is a small trader can scalp the micro using the right tactics. In other words, it can be worth ones time to scalp.
So, taking into account the tendencies of ES to revert how could a trader with a 2000 account scalp it’s movements by using the micro and not feel the pressures of a larger drawdown? It is one thing (in dollar terms) for a small account trader to be down 3 points on 3 or 4 micros as opposed to 3 points on 3 or 4 ES contracts before price reverts.
My conclusion so far is a small trader can scalp the micro using the right tactics. In other words, it can be worth ones time to scalp.
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it all depends on your strategy..if one tries to make 3 to 5 ticks with a similar stop loss..then I would say forget it..but the only way to actually know is to try it..which I am currently setting up for
the hardest part for me has been to try and find the best suited DOM tool for the way I want to trade..have tried several but nearly all had some drawbacks.. recently found a simple one that might just work as it has what I am looking for and also allows reverse trading from the chart with one click on open position line
I do not think..nor plan..to use MES for serious trading..as commission differences are just way too much..BUT..as the true saying goes..if you can't do it with small money you sure as hell won't be able to do it with large money
trying to compete with the big players is just a fools game..reason why micros have been launched is to suck in more retail fodder..the CME has probably been looking at IG index accounts and seen how much retail money they hold!!
anyway..imo the MES is a brilliant opportunity to test and prove your strategies actually work with trading real money..and that process will reveal how much the HFT traders don't know
