Quote from dpanic:
You're right the methodology is somewhat different, at least on a slower scale than dax although personally I've been having better luck trading retracements on dax than I have with breakouts but everyone has their own game plan. One thing that's different for me with ES is I have many trades that only generate maybe 1-2 points which is nothing compared to DAX as in this morning where I had 2 trades that generated 10-15 points each in just a few minutes. However because of the liquidity I'm comfortable trading about 5-10 times the size on ES that I do on DAX so at the end of the month I generally make just as much money with ES as I do with DAX pulling in maybe 2 or 3 good trades a day on ES for lessor points/trade. I would never put on a 20 lot dax trade but can do so with ES without really breaking a sweat and then partial out quickly to get my risk down to a very minimal amount. Many times I'll get a ES trade going, partial so that I have no risk, then setup ninjatrader to autoscale, turn up the speakers to listen for a ca-ching or a stop and then go downstairs and watch TV. ES trading for me is relaxing
Hi dpanic,
Your post is excellent in pointing out the behavioral differences between DAX and ES. The DAX can be a wonderful vehicle but can really get on your nerves. Although I run a very rigorous campaign for getting at "sensible" drawdown figures on my strategies, the DAX shows sequels you never encounter with the ES. happily this is also true on the positive side.
Do you have a theory for explaining this difference between ES and DAX? Would volume be the only factor involved?
Be good,
nononsense