Transition from Stocks to Futures

Dollardogs

Dollardogs

I've been trading stocks and ETFs for a couple years now. My eventual goal is to trade Nasdaq futures. My trading system has been a work-in-progress until very recently. I finally like what I'm seeing from it, but I need a lot more practical experience with it. If (and only if!) I can get a year of consistent results out of it, then I figure I'd be ready to switch to futures.

I'd welcome any general advice/wisdom/anecdotes on the switch to futures. What kinda differences should I expect? Is the leverage factor intimidating at first? I'd also welcome any book recommendations specifically on the futures market.

Thanks! Now let the non-sequiturs and usual semantics arguments begin. Shooting for 5 good tips in here.
 
Start slow....
Maybe even use micro nasdaq first
keep journal
deleverage the aggressive day trading margins most of us brokers offer....
Know what reports are coming, when, impact

Depending on the risk capital, the foundation of your system ( day trading? swing? options?) and how much you already know I can provide you with much more feedback.
 
Dollardogs said:
I've been trading stocks and ETFs for a couple years now. My eventual goal is to trade Nasdaq futures. My trading system has been a work-in-progress until very recently. I finally like what I'm seeing from it, but I need a lot more practical experience with it. If (and only if!) I can get a year of consistent results out of it, then I figure I'd be ready to switch to futures.

I'd welcome any general advice/wisdom/anecdotes on the switch to futures. What kinda differences should I expect? Is the leverage factor intimidating at first? I'd also welcome any book recommendations specifically on the futures market.

Thanks! Now let the non-sequiturs and usual semantics arguments begin. Shooting for 5 good tips in here.
More...
%%
I never trade or invest more than I can lose [or want to lose]; which limits some derivatives + includes cash ETF's market. I would never want only 12 months data; 10 years or all data, or both........
Home mortgage is a good leverage example, fine in many cases ;
+ I did cash last RE deal .:caution::caution:
 
CannonTrading_Ilan said:
Start slow....
Maybe even use micro nasdaq first
keep journal
deleverage the aggressive day trading margins most of us brokers offer....
Know what reports are coming, when, impact

Depending on the risk capital, the foundation of your system ( day trading? swing? options?) and how much you already know I can provide you with much more feedback.
More...

I'm strictly a day trader, mainly of QQQ at the moment. I see that /NQ's price action is virtually identical to QQQ so I'm optimistic my system would work about the same. Obviously the increased dollar amount of a full loss though would be a helluva lot more stress.
 
murray t turtle said:
%%
I never trade or invest more than I can lose [or want to lose]; which limits some derivatives + includes cash ETF's market. I would never want only 12 months data; 10 years or all data, or both........
Home mortgage is a good leverage example, fine in many cases ;
+ I did cash last RE deal .:caution::caution:
More...

What do you use to chart that far back? I trade off the 5min chart and I use Thinkorswim, pretty limited backtesting on that timeframe. My data only goes back 18 months, which is probably why I only half-trust my system for now, though the edge seems pretty clear.
 
Dollardogs said:
What do you use to chart that far back? I trade off the 5min chart and I use Thinkorswim, pretty limited backtesting on that timeframe. My data only goes back 18 months, which is probably why I only half-trust my system for now, though the edge seems pretty clear.
More...
%%
Stock Traders Almanac\ by Hirsch [line charts] goes back almost 100 years.
BUT i use QQQ data........ US $ ,more than line charts /about 22+ years, mostly candlecharts:D:D
 
Dollardogs said:
I'm strictly a day trader, mainly of QQQ at the moment. I see that /NQ's price action is virtually identical to QQQ so I'm optimistic my system would work about the same. Obviously the increased dollar amount of a full loss though would be a helluva lot more stress.
More...
Play around with range bars and volume charts. For NQ try 36 and 54 range bar charts and see if that gives you better entries? reduce some noise?

 
Dollardogs said:
I'm strictly a day trader, mainly of QQQ at the moment. I see that /NQ's price action is virtually identical to QQQ so I'm optimistic my system would work about the same. Obviously the increased dollar amount of a full loss though would be a helluva lot more stress.
More...

Then you have an advantage transitioning into the NQ, because as you said, the Qs and NQ PA is virtually identical. Well, that's because they pretty much are identical, both tracking the NDX.

If you have been able to move size on QQQ, then NQ is a no-brainer. Start with 1 contract in demo so you can see the differences the leverage brings, and you can then formulate how many contracts at once you'll be comfortable with.
 
Dollardogs said:
...My data only goes back 18 months, which is probably why I only half-trust my system for now, though the edge seems pretty clear.
More...

You said you're day-trading. Why do you need data from 18 months ago? The PA changes year-to-year, quarter-to-quarter. What worked last quarter may not work now.
 
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