Various uses of E MICRO futures!

Overnight said:
Never mind the math bit, I read your + 5,-2, +10 thing wrong.

Never mind the math bit.

Never mind.

Forget I mentioned it.

Claro?
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Claro? What on earth are you talking about with 7000 + posts I am sure you are experienced in this field.
Care to clarify or I am so dumb that I dont understand what you are saying!
 
traderjo said:
What you mean?
All I am simply saying is trader is +5 points and thinks it is going another +10 but in between may dip by few points and to take advantage of that temp downturn he uses 10 MES!
Unless you pinpoint what is wrong in the construct it is just a general opinion!
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Why not just average down in the temporary losing position in the ES? Oh yeah..most all the gurus’ rules say that is a no..no
 
traderjo said:
Lets say a trader has a 1 LONG ES position which is + 5 points already but he/ she thinks that ES will travel further 10 points but before doing that will turn down 2 point
SO at the point where he is +5 on ES if he Initiates a SHORT 10 MES ( or 5 ) and lets assume he times the market correctly takes the 2 point profit on the MES and then rides the ES back to +10
All in same account
Could this be a simple use of MES?
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It is often referred to as ..."trading around a position".
Yes, it is a simple use case.

Your example however, is not cost efficient, and taking the same weighting for an
expected little-money retrace might be considered as a form of overtrading.
But the fact is, it is acceptable, and legal with the two different instruments in one account.

I don't understand what all the hullabaloo is... ET diarrhea!
 
It is a simple case of over trading to me. You are under the assumption that the market will go up +5, then -2, then up +5. This is classic over trading and is not sustainable in the long term. And if you are not placing stop loss orders on your trades, you really need to consider another line of work.
 
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