Out-Of-Hours Trading Mini-Dow/e-mini

[carltonp]

Chaps,

This is excellent information.

I'm going to post a comment from John F. Carter, from his book Mastering The Trade. It is from his book why shy away from trading the ES, however after reading so many comments about trading the ES, I think I might take all of your advice.

Anyway, as I mentioned Im going to post John F. Carter's suggestions, would love to hear your opinions

Thanks again for responding

Cheers

 

[FrankSlaughtery]

if i read a book and it told me to trade YM instead of ES i would stop reading the book.

 

[carltonp]

Hi Frank,

Thanks for your comment. I thought I would dig out an extract from John F. Carter's book, please let me have your comments - I would also love to hear comments from other traders.

Unfortunately, I couldn't cut and paste so you'll have to open the word document to read it.

Cheers

 

[FrankSlaughtery]

Quote from carltonp:

Hi Frank,

Thanks for your comment. I thought I would dig out an extract from John F. Carter's book, please let me have your comments - I would also love to hear comments from other traders.

Unfortunately, I couldn't cut and paste so you'll have to open the word document to read it.

Cheers

i checked out the doc. here are my thoughts.

ee says b/c the tick value is lower you'd be less likely to have your stop hit b/c the "stop runs" are frequently 2 points on the ES whereas they're only 18 or 19 points on the YM. this is the stupidest thing I've heard in my entire life (besides lenny dykstra's rantings). first of all traders should just place their stops where they are able to manage risk and where their trade would be proven wrong. who cares about the big bad stop hunters. and second NEVER watch another instrument to trade another instrument. if you're trading the ym watch the ym. shocking i know.

he also says the ym now has enough liquidity to trade it in size. this is R-O-N-G. enough said.

he also says you'll pay less commission in ym. again as my dog would say this is R-O-N-G since the tick value is higher w/ ES.

to sum up - trade the ES not YM and don't listen to john carter.

 

[carltonp]

Quote from FrankSlaughtery:

ee says b/c the tick value is lower you'd be less likely to have your stop hit b/c the "stop runs" are frequently 2 points on the ES whereas they're only 18 or 19 points on the YM. this is the stupidest thing I've heard in my entire life

Frank,

Thanks for taking the time to review the extract.

I understand when you say "all traders should just place their stops where they are able to manage risk and where their trade would be proven wrong"

However, isn't John F. Carter fundamentally correct when he says "you'd be less likely to have your stop hit b/c the "stop runs" are frequently 2 points on the ES whereas they're only 18 or 19 points on the YM"?

Cheers

 

[BLUEDAY000]

Quote from carltonp:

Frank,

Thanks for taking the time to review the extract.

I understand when you say "all traders should just place their stops where they are able to manage risk and where their trade would be proven wrong"

However, isn't John F. Carter fundamentally correct when he says "you'd be less likely to have your stop hit b/c the "stop runs" are frequently 2 points on the ES whereas they're only 18 or 19 points on the YM"?

Cheers

Why don't paper trade ES vs YM ( so you see commission/margin/spread/tick value ) ???

You have a Broker ?

 

[carltonp]

Quote from BLUEDAY000:

Why don't paper trade ES vs YM ( so you see commission/margin/spread/tick value ) ???

You have a Broker ?

I've going to sim trade ES with IB

 

[volente_00]

Quote from carltonp:

Frank,

However, isn't John F. Carter fundamentally correct when he says "you'd be less likely to have your stop hit b/c the "stop runs" are frequently 2 points on the ES whereas they're only 18 or 19 points on the YM"?

Cheers

I trade es actively in ah and traded ym for about a year before switching to es. ah in ym flat out sucks. Between the spreads, stop runs and lack of liquidity you would be better off with ES.
You will be less likely to be stopped out in ES due to better liquidity. As Blotto said, 3 am est is often a key reversal time, also 6 am est can offer one as well.

 

[tomahawk]

carltonp, it's been mentioned already but you might want to seriously consider trading 6E (alt. symbol: EUR). It has decent moves and volume during the U.S. overnight, and more bang for the buck than YM or ES.

 

[FrankSlaughtery]

Quote from tomahawk:

carltonp, it's been mentioned already but you might want to seriously consider trading 6E (alt. symbol: EUR). It has decent moves and volume during the U.S. overnight, and more bang for the buck than YM or ES.

+1