Simple. To know if my edge has a decent chance of lasting. I'm not a discretionary trader.
Transition from Stocks to Futures
- Thread starter Dollardogs
- Start date
Simple. To know if my edge has a decent chance of lasting. I'm not a discretionary trader.
Never tried bar charts before, I'll check them out, thanks for the tips!
The main problems with NQ are constant changes in volatility and the extreme noise produced by day traders, so using historical data won't help you much in this market. Data providers have flooded the web with articles saying otherwise but if you use a montercalo simulator in order to generate variations of a problem you will find a way to make your system robust against the futures market.
As it has been said already, MNQ is your friendly market, it mirrors its big brother tick by tick and you will be able to see if your system works with a much lower risk.
Great, thanks! I'll def take this as a 4 step process then:
1. stick with QQQ for several more months, 2. try /MNQ in demo mode, 3. try /MNQ 4. dip my 1-contract holding toe into /NQ.
And if I'm being honest, I'm relieved to hear you say going back to the dawn of QQQ isn't worth the trouble. Backtested the shit out of this system already, drove myself half-nuts just coming up with a decent edge. If it falls apart on me in a month, think I'll just jump under the first steamroller I can find.
There isn't a definitive system, if it fails just try to understand why it failed and keep going. It happens to everyone. You actually want it to fail on MNQ so you understand the differences in both markets.
One method that I like to do, that maybe help yours, is to generate a strong trendy market with a data generator, and then trade against it. Most systems do well when the trend is favourable, but they fall apart when they have to survive a negative return. Force the system to trade against an adverse trend and see how it behaves, that is key for the futures market.
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THAT's' true;
but only because the past seldom exactly repeats.
You can tell a lot about the main trend by some counter trends;
for example BEAR OF 2000 countertrend QQQ went up 10% in on day.
It was not the bottom @ all , so short term traders may have come out OK. Maybe not.
Assume thy knew the difference between a drawdown + loss, which may or may not be true.
I like the way IBKR has an auto liquidate\that way any trader's losses dont goof up brokerage or other traders.
Maybe ok /as as markets tend to pay better sometimes +;
a lot worse than any backtest. And leverage makes it better + worse, than any backtest, which i do sometimes time. Skippin' plenty of data sure saves time \ effort .
What are your transaction costs with QQQ?
If you are trading with a zero commission broker you can increase your leverage with TQQQ & SQQQ. This also allows you to go short without borrowing shares.
Why day trading? Why not longer term?
Welcome to trading futures.
My progression / This is how I level up.
I started with investing in stocks in various countries
Then trade stocks
- position trading
- then swing trading
- then day trading
Then forex trading
Then day trading Russell index futures
Then options trading index futures
Then day trading various index futures,
energy futures, food futures, currency/bond futures...
Then spread trading various futures
Then back to
day trading various index futures,
energy futures, food futures, currency/bond futures...
LEVERAGE
Many people say the higher it is, the more dangerous it is.
I say the lower the leverage, the better it is.
Is high leverage dangerous?
Q is similar to
Is a sharp knife dangerous?
You have to try various things and see which fits you.
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These ETFs are not enough leverage. Once you get into futures, you’ll be addicted, purely gambling.
Trading-wise, there's no difference in price movement between NQ futures and, say, QQQ. There might be an insignificant delay with one of them, but for the most part, they move pretty much in tandem. The primary benefit to trading the futures over stocks is there are no damn rules: PDT, uptick, borrowing short, and all the other crap that comes with the baggage. Second is it trades 24x6, so you're able to get out of the position should something happen overnight. Finally, massive leverage (obviously).
Anyway, I suggest you backtest for at least a few months in real time to see how your system stacks up.