Macho cajones required to trade ER2?
- Thread starter high99
- Start date
I would have to disagree with that. Back in Feb. & March of 2007 when trading the ER, (volume has increase since then) I would get fills on 10-20-30 lots on the ER and not partial fills.
Now granted I have not trader the ER since then, and have notice that since its volatility had increased, it doesn't move in increments of .10 consistently like it use to. Now it moves in .20 and .30 and higher, therefore more slippage
My 2cents
you get used to it. get used to more risk as you ramp it up
<i>"I would have to disagree with that. Back in Feb. & March of 2007 when trading the ER, (volume has increase since then) I would get fills on 10-20-30 lots on the ER and not partial fills.
Now granted I have not trader the ER since then, and have notice that since its volatility had increased, it doesn't move in increments of .10 consistently like it use to. Now it moves in .20 and .30 and higher, therefore more slippage"</i>
Some sessions you can click in 10-lot or 20-lot orders and get filled on all of them every time. Other days you can click the same size and get filled on 2 or 3 contracts before price action blows away from there.
Consistently getting filled on 20 or 30 contracts on every trade, limit orders simply does not happen straight thru. When there are 15 - 40 contracts at a strike on the dome, it's impossible. As fate usually has it, the winning trades are caught with partial fills that run +5pts in favor. The losing trades will fill 100-lots, because they are coming back in your lap all the way.
The only way to consistently fill size in the ER is to stagger entry orders. If you think the 700.20 level is an ideal failure spot with price trading at 698.00, five contracts each with staged short entry at 699.80, 699.90, 700.00 and 700.10 will fill fifteen if not all twenty.
In the case of a partial fill here, price action probably failed a bit lower than expected but at least you have some contracts working in a profitable move. The whole lot staged at 700.10 would have missed filling any at all.
*
That extra effort will allow greater size filled than straight entries can... true with any symbol in any market. At this moment in time, I'm focused on the ES and soon ZB for ability to clear 100s of contracts in a similar scale. The above example is what worked for me in the past, and would work on any exchange (CME or ICE) in the future.
There is a reason that big pros don't trade ER or NQ. Limited size on fills. Retail traders should be grateful for that... it keeps the buzzy fuzz of constant program-slams at bay. That's why the ER and NQ are more trendy and directional than ES, limited liquidity preserves their natural rhythm.
ER imo gives the best ratio of risk to reward for all eminis. Using a -$150 initial stop (at most) will see many +$300 to +$800 profit moves. Even a 40% win ratio works fine if the losers are cut short and winners left to run.
Now granted I have not trader the ER since then, and have notice that since its volatility had increased, it doesn't move in increments of .10 consistently like it use to. Now it moves in .20 and .30 and higher, therefore more slippage"</i>
Some sessions you can click in 10-lot or 20-lot orders and get filled on all of them every time. Other days you can click the same size and get filled on 2 or 3 contracts before price action blows away from there.
Consistently getting filled on 20 or 30 contracts on every trade, limit orders simply does not happen straight thru. When there are 15 - 40 contracts at a strike on the dome, it's impossible. As fate usually has it, the winning trades are caught with partial fills that run +5pts in favor. The losing trades will fill 100-lots, because they are coming back in your lap all the way.
The only way to consistently fill size in the ER is to stagger entry orders. If you think the 700.20 level is an ideal failure spot with price trading at 698.00, five contracts each with staged short entry at 699.80, 699.90, 700.00 and 700.10 will fill fifteen if not all twenty.
In the case of a partial fill here, price action probably failed a bit lower than expected but at least you have some contracts working in a profitable move. The whole lot staged at 700.10 would have missed filling any at all.
*
That extra effort will allow greater size filled than straight entries can... true with any symbol in any market. At this moment in time, I'm focused on the ES and soon ZB for ability to clear 100s of contracts in a similar scale. The above example is what worked for me in the past, and would work on any exchange (CME or ICE) in the future.
There is a reason that big pros don't trade ER or NQ. Limited size on fills. Retail traders should be grateful for that... it keeps the buzzy fuzz of constant program-slams at bay. That's why the ER and NQ are more trendy and directional than ES, limited liquidity preserves their natural rhythm.
ER imo gives the best ratio of risk to reward for all eminis. Using a -$150 initial stop (at most) will see many +$300 to +$800 profit moves. Even a 40% win ratio works fine if the losers are cut short and winners left to run.