Nasdaq futs

rossored

Senior member
2,105 56
I have begun following NQ lately, and wondered if there were many others on the board who regularly traded it.

If so, do you have a favourite "method" or style for it? I ask because I tend to feel that ES futs dont normally generate traditional TA patterns in the same way as YM does, for example, and I'm beginning to think the same about NQ.

Is volume as useful, for example, on NQ as it is on ES? Or is it a waste of time?

Any comments/help gratefully received.

RR
 

Johnny Rotten

Junior member
26 0
Volume

Personally, I think that looking volume is a waste of time in both symbols. There's plenty of it - what else is there to know? The notion of looking at the Bids/Asks from levels 2-5 doesn't make sense because such bids/offers can and do evaporate as fast as they arrive. Looking at level one is only relevant when trying to get filled and wanting to see how far at the back of the queue you are! But such 'volume' information is useless in terms of helping to assist with actual trading decisions IMO!
 

stevet

Established member
917 5
volume is a key entry and exit trading signal - and also impacts on the way that the releveant contract trades - but also remember that the es moves in quarter points and the nq moves in halves - and also that the underlying of nq is going to be more volatile than the es, since it is predominantly composed of techy stuff

forget the ym since you cant get enough size on to make learning it worthwhile
 
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Gary777

Junior member
29 0
Agree with Johnny

I agree with Johnny. I think volume isn't of much use in day trading. The smaller the time frame you are looking at the less useful it becomes in my opinion, although I'm sure there's plenty of people who disagree.

I also like to trade the YM.

I guess trading is such an interesting subject because everyone has different ideas.

Johnny Rotten - Are the the same Johnny Rotten who upset the locals on elitetrader.com ?
 

Johnny Rotten

Junior member
26 0
Nothing personal

rossored said:
Is volume as useful, for example, on NQ as it is on ES? RR
Don't take it personal but your question/comment pre-supposes that volume is useful on the ES. Useful for what exactly? Trading decisions? I don't think so. At best, level one is useful for an idea of how many trades must take place before your limit order might be filled. Unless you're a 1 tick scalper, this information is irrelevant as a factor in determing whether you should place the order or not. The greater the volume (as is the case in ES/NQ) the more irrlevant it becomes. This may not be the answer you're looking for, but it's reality!
 

rossored

Senior member
2,105 56
Hey, I'm just after any information that anyone can give. If someone tells me its a waste of time to trade it, or whatever, then fine I'll take that onboard, but I may not ness. agree with it.

I started the thread just to try and get some more info on NQ before I jumped in with both feet, thats all.
 

stevet

Established member
917 5
rossored

no disrespect and all that - but if you have to ask if its worth to trade - you really want to stay away from the NQ - its way more volatile than the ES - its volatility is an aid if you understand whats driving it - but you will get chewed up real quick if you dont - stick with the ES

and the reason its more volatile is to do, among other things, with the volume, which may not look much less compared to es, but makes a big difference when traders are pumping in size in the 100s

and how you trade without using volume beats me - since i only use price and volume - but like someone said - there is more than one way to skin a cat - not a cat lover i guess!
 

rossored

Senior member
2,105 56
None taken, its just something else I am looking at as another potential string to my bow.

thanks anyway
 

Johnny Rotten

Junior member
26 0
My favourite index futures

1. DAX
2. YM

Am alternative to the DAX for smaller accounts is the ESTX50. Both symbols tend to move the same way at the same time, albeit the DAX runs faster. ESTX50 has much lower risk & much lower reward.

For the US markets, ES is "OK" but suffers a lot of chop. The NQ has exactly the same issues and moves so similarly to the ES that the only reason I can think why anyone would waste their time with it, is because they have a smaller account and/or prefer to take smaller $$ risk than trading the ES. The YM while it has lower volume and moves in a similar direction to the ES most of the time ...it tends to be technically purer.

But the DAX is where it's "at" in my mind. First two hours of Eurex, and first two hours of US open only.

I suppose reverse logic applies, in the sense that if you're just starting out and cutting your teeth, then the best markets would be:
1) NQ
2) ESTX50
...with the goal being to graduate to DAX & YM later.
 

Gary777

Junior member
29 0
Welcome Mr Rotten.

That infamous thread on Elite Trader where you presented your excellent trading method and at the same time destroyed the '50 posts a day' locals will live long in my memory.

All the best to you.
 

rossored

Senior member
2,105 56
Yep, the Dax would be great....however, the idea of getting up to trade at god knows what time does not fill me with glee :LOL:
 

stevet

Established member
917 5
Johnny Rotten

i am fascinated - how can you put the Dax and the YM together, do u know the relative values and the available size on each? i wish we could get that kind of comparison in our arbs

and just so you know - the YM may appear technically purer - but thats just because all the trades do not register - when the CBOT moves to the liffe system - the YM is going to look a lot less purer for sure
 

Johnny Rotten

Junior member
26 0
Gary777 said:
Welcome Mr Rotten.

That infamous thread on Elite Trader where you presented your excellent trading method and at the same time destroyed the '50 posts a day' locals will live long in my memory.

All the best to you.
Yeah - the main problem with ET is that it's run by yanks. A ban was the only way out of town! Figured I'd hang out with my fellow countrymen for a while instead. BTW, what's with the auto deletion thing over here? I never wrote those asterixes in my signature file! Doesn't the owner of this site know I have the legal right to call my album by its proper name? ...

http://www.acc.umu.se/~samhain/summerofhate/courtcase.html

How are the moderators in this town anyway? Seems like a few Mother Hens and Uncle Toms but I could be wrong?!!! ;)
 
 
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