Some kind of passive or agressive

J

Javier

From the point of view of a trader and developing a strategy... I wonder 2 aproximations, one passive, and another agreesive. Reading papers on CME I always read "honor" the quote, wich i think that is a passive aproximation. For example, if I deploy a limit, what would be better honoring that limit and wait for being took, or close agressively and pay the spread (and let the spread for the speacialist or mm as I read in another papers). What would be your experience?

Thanx in advance.
 
The right answer depends on the details. How many trades are you going to take this year? For example, if you take four trades a day for 250 trading days, that's 1000 trades. Paying a minimum two ticks on the ES per round trip is going to take $25k off the top of your profits this year. That's an expensive habit.

The right answer also depends upon your expectancy, your holding time, and how rare your setups are. If a setup appears regularly, you can afford to miss some, but if they are one of those rare gems that pay well but only show up a few times a month, pay the spread. The right answer should show up in your back testing.
 
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