How the CME’s New Micro E-Mini Futures Might Work to Your Advantage

volpri said:
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.
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the ES sep contract traded 773,234 contracts today during the NYSE session..what do think the delta was between up and down volume..answer will (+ or -) X number of contracts..lets see who gets the closest :)
 
Overnight - why would anyone trade 10 micros instead of one ES... And yes, swing trading is not 2-5 hour trades. That is day trading. Swing trading is buying and holding for 20-30 points which lasts more than one trading day 90% of the time.
 
I've found micros to be incredibly helpful with my trading so far.

I have been trying to consistently trade well with 1 lot on E-mini and it has it's pitfalls, due to being tied to only 1 position. With 1 position, comes a stronger sense of holding or "trying" to get the most of the trade. Very rigid type of trading.

With 10 lots on the micro, I am now able to manage the trade a lot better than with 1 lot on ES.
If it takes out my S/L, I can either get out of all 10 lots or sell proportionately to the speed/break of it. If it reaches my first target on micro,(I can take some off just to book profit) (Whereas if I had 1 lot on ES, I would either sell or keep for more gain). I am more comfortable adding on pullbacks, I can actually hold a position overnight, etc.

All in all, I wish micros existed when I first started out. But from the many scars and lessons from trading 1 lot, I will utilize this new tool to the best of my ability :)
 
heavenskrow said:
I've found micros to be incredibly helpful with my trading so far.

I have been trying to consistently trade well with 1 lot on E-mini and it has it's pitfalls, due to being tied to only 1 position. With 1 position, comes a stronger sense of holding or "trying" to get the most of the trade. Very rigid type of trading.

With 10 lots on the micro, I am now able to manage the trade a lot better than with 1 lot on ES.
If it takes out my S/L, I can either get out of all 10 lots or sell proportionately to the speed/break of it. If it reaches my first target on micro,(I can take some off just to book profit) (Whereas if I had 1 lot on ES, I would either sell or keep for more gain). I am more comfortable adding on pullbacks, I can actually hold a position overnight, etc.

All in all, I wish micros existed when I first started out. But from the many scars and lessons from trading 1 lot, I will utilize this new tool to the best of my ability :)
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Excellent. Trade management is the Secret sauce.
 
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