S/R Emini Journal
- Thread starter 4re
- Start date
- Status
As a YM trader, I wanted to add my two cents here.
I started out trading the ER2 and loved its effective range everyday. But after a couple of months, I switched over to the YM for a couple of reasons.
One, after backtesting my setup, I came to the decision that the YM gave me clearer signals without as much noise and the volume was somewhat better.
Two, this was around the time that the Russell seemed to be making new highs everyday and was the subject of a lot of new articles in SFO and the like. I felt like it was getting too much attention from the wrong people and it just didn't appeal to me as much. Kind of felt like it was the new tech stock during the 90s.
Lastly, the YM has the smallest tick value of the index futures at $5 per tick. In the ES, a lot of folks set 2 point stops and with good reason. On a dollar per contract basis, that translates into a 20 point stop on the YM. IMHO, that is a big stop for the YM and you'll be able to trade effectively with something much smaller.
So when you're wrong, you're not losing as much and you can still catch good trends to make some money. With a smaller value per tick, you can afford to have a longer learning curve.
And while I can only point to the order book as my data, I think that more of the big boys play in the ES versus the YM. And I'd rather swim in shallower water. At least for now.
Hear! Hear!
(insert golf clap here)
I started on and traded YM for 1 year. Mainly as a learning tool, liked the fact that there were more places to places stops and enter and exit over say 20 points vs the 8 ticks in 2 points in ES. I used to trade it with a 20 point stop. I found these helpful while learning it.
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1180+17719,00.html
I switched to ES. Why you ask ? I found myself getting stopped out on chop due to the lower liquidity. To small of size can allows "entities" to bully ym to extremes where as in ES it just absorbs it unless there is massive size and then you had better be with them. ES is so much smoother to me. My stop out decreased which has in turn has allowed me to catch bigger moves with fewer trades. When I was in YM, I was doing at times 20+ trades a day, now in ES on a good day I may do 5 or 6.
http://www.cbot.com/cbot/pub/cont_detail/0,3206,1180+17719,00.html
I switched to ES. Why you ask ? I found myself getting stopped out on chop due to the lower liquidity. To small of size can allows "entities" to bully ym to extremes where as in ES it just absorbs it unless there is massive size and then you had better be with them. ES is so much smoother to me. My stop out decreased which has in turn has allowed me to catch bigger moves with fewer trades. When I was in YM, I was doing at times 20+ trades a day, now in ES on a good day I may do 5 or 6.
Hey boro...any trades?
I've been sitting on my hands. Now waiting to see who wins the battle between 796-817 then look for a breakout of the opening 15 minute candle, 779 if the bears win and 850 if the bulls win.
Oops! Looks like the bears won!
I've been sitting on my hands. Now waiting to see who wins the battle between 796-817 then look for a breakout of the opening 15 minute candle, 779 if the bears win and 850 if the bulls win.
Oops! Looks like the bears won!
Sold @ 778. Looking for 25 points.
10:30 reversal at 1239 ?
Shoot! I knew you'd show up!
While I'm not trading by your color commentary (as good as it may be
) I am going back to my trending/breakout trading - something about fixing what ain't broke - so I'm pretty much short (at 1239.75) along with everyone else.(Not a recommendation)
Who knows, maybe we'll get a double headfake and get the ball stuffed back down our throats ... but it ain't look'in like it, is it?
JJ
- Status