fishing

hi Thales i've been trading futures and so i'm familiar with those instruments and know roughly what their daily ranges are. hence i can estimate how far they can go to exit my positions. but for stocks the daily ranges are kind of all over the place. so can you share how you would exit your trades? thanks

is spreading treasuries very competitive or is there room for retail traders? i've been trading outright futures and used to take quite big hits occassionally (still trying to be discipline and minimize them) that's why i'm very interested in spreading. i've been looking at ES/YM because of high correlation between the two and convenient hedging ratio (nearly 1 by 1). From what i observed, the spread is kind of correlated to ES on intra-day and daily charts, generally. quite often it goes only 1 way without looking back on intraday charts, so that's quite a challenge for me. other than that, i've been trying to find some documents for this trade for quite a long time but so far no luck...

no problem jfutures i would love to hear how you are going to trade it..

hey Thales i've never traded stocks before.. so if i trade stocks by adding liquidity, is it less costly to trade stocks? thanks

jfutures the idea is to be dollar neutral so let's say you want to sell ES and buy YM ES trading 900, so 1 ES pt is worth 900 * 12.5 * 4 = 45000 YM trading 8500, so 1 YM pt is worth 8500 * 5 = 42500 the ration would be 45000/42500 or 1.06 so you can hedge 1YM for 1ES or 17YM for 16ES