is anyone trading emini Russell 2000 and getting over a point a day
- Thread starter mureese
- Start date
This contract is tough, mostly because of the stop-running and noise present. I lost money on it, went over to NQ, made money (Wow, NQ seemed so "nice", so "tame" !), and then came back to eRL, and.....yes, ONCE AGAIN, lost money.
I think it's a great scalping contract, but if you are intraday swing trading, then you better have lots of patience and lots of discipline. So many times, I'd enter, only to have my stop taken out 2 minutes later, and THEN it moved in my direction. Widen your stops and that will help, but be sure to get out when you are obviously wrong. This morning I shorted and held....for a big loss. By 2:15, the run-up was over and there was tons of money to be made on the downside. I missed that as several of my limit orders just missed getting filled by 2 ticks or so.
Based on my experience, my rec for this guy is to use stop orders almost exclusively for entry....as the market will already be moving in that direction. Bottom and top "fishing" with limit orders is a low,low probability situation, especially with tight stops. Oh, if you do get it without being stopped, they are usually very sweet trades....but far-and-few between, that's all.
I think it's a great scalping contract, but if you are intraday swing trading, then you better have lots of patience and lots of discipline. So many times, I'd enter, only to have my stop taken out 2 minutes later, and THEN it moved in my direction. Widen your stops and that will help, but be sure to get out when you are obviously wrong. This morning I shorted and held....for a big loss. By 2:15, the run-up was over and there was tons of money to be made on the downside. I missed that as several of my limit orders just missed getting filled by 2 ticks or so.
Based on my experience, my rec for this guy is to use stop orders almost exclusively for entry....as the market will already be moving in that direction. Bottom and top "fishing" with limit orders is a low,low probability situation, especially with tight stops. Oh, if you do get it without being stopped, they are usually very sweet trades....but far-and-few between, that's all.
I think I've seen at least 7 to 10 traders here at ET say or hint that they are making a few points per day on average while trading ER2 for the trading days they trade it.
Simply, there's a difference between making a few points every trading day in comparison to making a few points the days you trade ER2.
In other words, some days these traders aren't trading ER2 for whatever reasons.
Many of these guys/gals are using a volatility based methodology.
Mark
Well, I trade ER2 almost exclusively, sometimes I peek over NQ but mini-russell is my preferred market. It adjust well on my personality and my style of trading.
I can't tell you how to trade it 'cause maybe you have your own style and edge.
I can give you a few pointers I personally use
1) I trade no more than 10 contracts per trade.
2) I have to be extremely patience to wait for my setups to be done
3)Once I get on board, I don't baby sit my trade . I go do something else and I check back my charts 1 hour before closing time.
4) I close my trade 1 hour before closing time, if my limit hasn't been reached.
5) My R/R ratio is 1 or 2 / 3.5 to 4 depending on market conditions - As this month I am 1 to 3 ...ok I risk more than I can get...it works for me like a charm. Of course that goes along with my strategy. If you go 3:1 like some guru's outhere are patronizing(especially forex bucket shops) you will be slaughtered on all markets constantly , especially on mini russell, I promise you.
6) Market orders for entries...always....minimize slippage big time
7) Just 1 trade a day. Whatever the outcome of that trade might be. I mean, my job as a trader is not to make money but to preserve my capital. As a resut of my job, I am awarded with gains that other traders are leaving behind for any number of reasons. Think about it.
# 3 is the core of my discipline. Once you get on a trade, especially on ER2 if you keep staring at the charts you will have a tendency of killing your trade early. Just let the market do it's thing.
I a perfect world you will have 20 trading days - in a real world, you will have 15 or 16 trading(probable setups) per month. Sometimes, like this month(February 2007) seems like I am going to have less possible trading days, well, that's just a hunch.
Let's assume 15 trading days/ 5 contracts - 2 points target (highly possible when volatility is high)
that's $1,000.00 a day not considering broker's fees. On 5 contracts you won't have slippage problems on ER2 Actually I have minimal slippage(1-2 ticks) on 10 contracts very seldom. As I am not a scalper, it's not a big deal
so $1,000.00 a day x 15 = $15,000.00
As I say, we're talking about ER2 on normal to high volatility
This is how I see this month February 2007
5 to 10 contracts and 1 point profit target
$500.00 a day - and I am betting on 12-13 possible days with acceptable setups for my strategy (I hope I get wrong and get 14-15 just wishful thinking)
$500.00(5 contracts) x 12 = $6,000.00.
$1,000.00(10 contracts) x 12 = $12,000.00
Mini Russell moves fast 'n wild. Give it room to breathe (wide stop loss ) It's a good way to dome the beast, at least works for me.
I can't tell you how to trade it 'cause maybe you have your own style and edge.
I can give you a few pointers I personally use
1) I trade no more than 10 contracts per trade.
2) I have to be extremely patience to wait for my setups to be done
3)Once I get on board, I don't baby sit my trade . I go do something else and I check back my charts 1 hour before closing time.
4) I close my trade 1 hour before closing time, if my limit hasn't been reached.
5) My R/R ratio is 1 or 2 / 3.5 to 4 depending on market conditions - As this month I am 1 to 3 ...ok I risk more than I can get...it works for me like a charm. Of course that goes along with my strategy. If you go 3:1 like some guru's outhere are patronizing(especially forex bucket shops) you will be slaughtered on all markets constantly , especially on mini russell, I promise you.
6) Market orders for entries...always....minimize slippage big time
7) Just 1 trade a day. Whatever the outcome of that trade might be. I mean, my job as a trader is not to make money but to preserve my capital. As a resut of my job, I am awarded with gains that other traders are leaving behind for any number of reasons. Think about it.
# 3 is the core of my discipline. Once you get on a trade, especially on ER2 if you keep staring at the charts you will have a tendency of killing your trade early. Just let the market do it's thing.
I a perfect world you will have 20 trading days - in a real world, you will have 15 or 16 trading(probable setups) per month. Sometimes, like this month(February 2007) seems like I am going to have less possible trading days, well, that's just a hunch.
Let's assume 15 trading days/ 5 contracts - 2 points target (highly possible when volatility is high)
that's $1,000.00 a day not considering broker's fees. On 5 contracts you won't have slippage problems on ER2 Actually I have minimal slippage(1-2 ticks) on 10 contracts very seldom. As I am not a scalper, it's not a big deal
so $1,000.00 a day x 15 = $15,000.00
As I say, we're talking about ER2 on normal to high volatility
This is how I see this month February 2007
5 to 10 contracts and 1 point profit target
$500.00 a day - and I am betting on 12-13 possible days with acceptable setups for my strategy (I hope I get wrong and get 14-15 just wishful thinking)
$500.00(5 contracts) x 12 = $6,000.00.
$1,000.00(10 contracts) x 12 = $12,000.00
Mini Russell moves fast 'n wild. Give it room to breathe (wide stop loss ) It's a good way to dome the beast, at least works for me.
I've traded the ER for 2.5 years, and agree with everything <b>Feb65</b> said... especially (emphasis) the part about being patient and intraday swings.
ES, NQ and YM are much better suited for scalping. ER is too spiky - rangy for controlled tiny losses against small profits. It is the best intraday swing trade symbol... toughest scalping symbol for that very same reason.
ES, NQ and YM are much better suited for scalping. ER is too spiky - rangy for controlled tiny losses against small profits. It is the best intraday swing trade symbol... toughest scalping symbol for that very same reason.
This month has been real tough. January was great once you figured out where the pullbacks were and could pick good entry points. There was a 12-14 handle range every day and great volatility...now we've been in the 3-4 handle range and volatility has dried up...I'm happy to make 10 ticks a day when i was getting 20+ before...