YM versus ES fallacy

yes I like the er2 for that, but the moves where it pops for no reason a few points pisses me off. I am trying to figure out how to manage those
 
I don't follow ER2. From what I have read here, it seems that ER2 has more volatility, but you would do best to check for yourself. I like NQ better than ES due to smaller tick size and what I think is generally better volatility. Further, the NQ's tick size is proportionate to the larger, pit-traded contract, unlike ES's tick size which is proportionately larger. Therefore, I think that ES traders may be at a relative disadvantage to pit traders who can arb ES and SP in a way that pit traders cannot arb ND and NQ. Of course, this is all over my head. I just know that I don't like giving someone any more of an upper hand than necessary.
 
I am going to try NQ tomorrow and see how it goes. Is there anything particluar you look for in the nq? I know what I look fro in the er2 but I am sure it wont translate to the nq
 
Quote from STEERAM:

I am going to try NQ tomorrow and see how it goes. Is there anything particluar you look for in the nq? I know what I look fro in the er2 but I am sure it wont translate to the nq
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I trade NQ largely as I had traded ES. However, if you have not traded it before, you would do well to take it out for a test drive first.
 
YM's biggest problem is lack of native stop limit orders. As a result you can get massive slippage on breakouts. Not very friendly for swing or position traders.

ER2 is the best bang for the buck as mentioned.

NQ will get better once it recovers from the tech bubble.

ES - the tick is too wide due to internal CME politics (read link below). All breakouts are faded by the pit arbs due to the monopoly/privledge they gave themselves with a .10 tick size on the pit contract and a .25 tick size on the ES contract. This increases risk for other traders and can lead to choppiness.

http://www.elitetrader.com/vb/showthread.php?s=&threadid=93275&perpage=6&pagenumber=6

All can be traded. Pick your poison.

Quote from Thunderdog:

I don't follow ER2. From what I have read here, it seems that ER2 has more volatility, but you would do best to check for yourself. I like NQ better than ES due to smaller tick size and what I think is generally better volatility. Further, the NQ's tick size is proportionate to the larger, pit-traded contract, unlike ES's tick size which is proportionately larger. Therefore, I think that ES traders may be at a relative disadvantage to pit traders who can arb ES and SP in a way that pit traders cannot arb ND and NQ. Of course, this is all over my head. I just know that I don't like giving someone any more of an upper hand than necessary.
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Importance of tick compared to daily range( the most important thing for us ):

- ER2
- EMD
- ES
- NQ
-YM


E mini MSCI EAFE will probably gain volume in the near future.
 
Quote from increasenow:


1-more volume on ES, better fills

More volume but the worse fills out of all 4 index's IMO. Has to trade through your price on entry and exit if using limits.. thats 2 ticks of slippage per trade.
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