In my own opinion you’ll have 5 major types of futures markets it is possible to sizetrade:
• Stock indexes
• Ags / grains
• Bonds / Notes
All the markets have a variety of qualities that will allow it to be a good (or poor) fit for you as a day trader. Let us go down the list and have a look at what our options appear to be. Stock indexes will be the most used by far. The E- YM mini ES, NQ and the powerful Russell are the four most popular names to day traders mainly since they got the most marketing towards retail dealers like yourself. 15 years past these did not exist, and they’ve become one of the active and most fluid marketplaces accessible to sizetrade.
Stock indexes are believed range-bound markets and they trade the whole US trading session from 9:30 am est and close at 4:15pm est Monday through Friday. Stock indexes are known for having most of the quantity traded in the morning, therefore I focus personally on the morning session to ensure I get the best moves, however there’s considerable chance in the days too.
Being range-restricted markets means that these stock index futures like the ES won’t have trading ranges that are substantial compared to other markets including currencies or commodities. With a lot of liquidity come anyone who trades the ES understands just what crabwise ranges are, and the problem of breaking from sideways trading ranges. I love to focus on purchasing the lows and selling the highs using cost reversal techniques that are easy for marketplaces like stock index futures since they’re range-bound and can tend to remain inside their various trading ranges.
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