Hi everyone,
After having traded up to five ER@ contracts for several years, I'm getting ready to enter the market with a larger account, in the $150k-$180k area. There are several points I'm concerned about, and which I would appreciate your input about.
1. Fills & trading methodology. Trading 5 contracts is one thing, trading 15-30 quite something else. Up until now, I've been trading with a combination of S&R and DOM reading, going for 2-4 points profit per trade, with an average stop loss of 2 points. Will trading a higher number of contracts mean a lot more slippage, and a need to perhaps entirely change my entire methodology to account for that? And perhaps a need to use higher margins (currently $5k/contract)?
2. Connected to the previous point, with ER2 moving to ICE, will that just worsen the situation due to less volume, perhaps necessitating a move to a different trading vehicle?
3. On the other hand, are there methodologies that would perhaps allow a bigger account to take advantage of less volume, having a bigger impact on market direction? I realize that 15-30 contracts is not exactly earth-shattering, yet I wonder if there is a point where a certain number of contracts enables/forces one to use profitable strategies unavailable to smaller traders.
Thanks in advance for any comments.
Shraga
After having traded up to five ER@ contracts for several years, I'm getting ready to enter the market with a larger account, in the $150k-$180k area. There are several points I'm concerned about, and which I would appreciate your input about.
1. Fills & trading methodology. Trading 5 contracts is one thing, trading 15-30 quite something else. Up until now, I've been trading with a combination of S&R and DOM reading, going for 2-4 points profit per trade, with an average stop loss of 2 points. Will trading a higher number of contracts mean a lot more slippage, and a need to perhaps entirely change my entire methodology to account for that? And perhaps a need to use higher margins (currently $5k/contract)?
2. Connected to the previous point, with ER2 moving to ICE, will that just worsen the situation due to less volume, perhaps necessitating a move to a different trading vehicle?
3. On the other hand, are there methodologies that would perhaps allow a bigger account to take advantage of less volume, having a bigger impact on market direction? I realize that 15-30 contracts is not exactly earth-shattering, yet I wonder if there is a point where a certain number of contracts enables/forces one to use profitable strategies unavailable to smaller traders.
Thanks in advance for any comments.
Shraga