<i>"I trade ER2 now, but want to switch to ES for the liquidity. can anyone who has done the switch comment? I'm curious how long it took you to become consistently profitable in ES after the switch if you were consistently profitable in ER2? TIA"</i>
I traded the ER2 from mid 2004 thru mid 2007 myself. Saw it go from 30k contracts daily to 200+k contracts, saw changes from VIX above 20 to below 10 levels, etc.
Switched to the ES a couple months ago for various reasons, and should have done so long ago. I don't scalp, I trade for handles. +$100 to +$400 per contract are my profit exits, using 3min or equivalent chart.
The ER does offer more range at times, that's the sexy part. It also has same range going against open trades to take out stops in the chop whereas ES will usually hold the same relative stop order. In other words, fewer stopped trades that would have worked in ES versus ER. Win ratio is higher.
Also, the ER tends to give quick pullbacks and/or breakouts before surge moves. You either hit the entry fast or miss many of them. That creates a more aggressive, reactionary = emotional mindset.
The ES tends to sit on similar entry points for multiple bars before moving off. That permits more deliberate thought = planned action versus sixgun trader mentality. Less emotional angst involved.
ER tends to spike thru critical price marks, aka pivot levels, trend lines, price patterns in false break manner compared to ES. The ES tends to flag, channel and hold visible S/R levels much more predictably than ER does.
We are enjoying a return to <b>normal</b> price action now. Gone for awhile, possibly years are those basement level volatility readings with nil-range sessions. What we saw the past two weeks is most probable to persist for months or years ahead. We likewise need to adjust our trading approach to suit this return of normal market behavior.
There is no need to scalp three ticks in the ES when it covers a 20pt to 30pt total range intraday. Far easier to pick off one - several +4pt ES trades intraday... they are offered all over the chart these days. For that type of trading, no other emini compares to ES when it comes to volume, open interest and deliberate price movement.
Hope this helps
I traded the ER2 from mid 2004 thru mid 2007 myself. Saw it go from 30k contracts daily to 200+k contracts, saw changes from VIX above 20 to below 10 levels, etc.
Switched to the ES a couple months ago for various reasons, and should have done so long ago. I don't scalp, I trade for handles. +$100 to +$400 per contract are my profit exits, using 3min or equivalent chart.
The ER does offer more range at times, that's the sexy part. It also has same range going against open trades to take out stops in the chop whereas ES will usually hold the same relative stop order. In other words, fewer stopped trades that would have worked in ES versus ER. Win ratio is higher.
Also, the ER tends to give quick pullbacks and/or breakouts before surge moves. You either hit the entry fast or miss many of them. That creates a more aggressive, reactionary = emotional mindset.
The ES tends to sit on similar entry points for multiple bars before moving off. That permits more deliberate thought = planned action versus sixgun trader mentality. Less emotional angst involved.
ER tends to spike thru critical price marks, aka pivot levels, trend lines, price patterns in false break manner compared to ES. The ES tends to flag, channel and hold visible S/R levels much more predictably than ER does.
We are enjoying a return to <b>normal</b> price action now. Gone for awhile, possibly years are those basement level volatility readings with nil-range sessions. What we saw the past two weeks is most probable to persist for months or years ahead. We likewise need to adjust our trading approach to suit this return of normal market behavior.
There is no need to scalp three ticks in the ES when it covers a 20pt to 30pt total range intraday. Far easier to pick off one - several +4pt ES trades intraday... they are offered all over the chart these days. For that type of trading, no other emini compares to ES when it comes to volume, open interest and deliberate price movement.
Hope this helps