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feb2865

E-Mini Dow trading

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I would like to express my thankfulness to James, Ant and everybody that has contributed in this forum about the E-Mini Dow (YM)

 

I started to trade YM on Monday 16 2006. As I am slowly pulling away from Crude oil (I think is going to stuck in 57-60 range) I was looking for an alternative other than energy/comodities sector. I traded ES (Mini S&P) and I found it kinda jumpy for my style. Nothing wrong with trading ES it's just my personal and very subjective point of view.

 

I found YM very well balanced, not too slow but sufficiently fast with a decent volaliltily.

 

I always trade heating oil (That's how I pay for my daugther's christmas gifts, please don't tell her) around this time. Other than heating oil, YM will pose a suitable alternative for me to trade this winter .

 

Regards

 

Raul

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Hey Raul,

 

I agree with you that this website is attracting good people willing to share. I certainly gravitate to your posts as well. :)

 

I do have a few questions for you, or anyone else, and apologize if this is off-topic for this thread. I currently daytrade the ES and swing trade the Euro. I also plan on adding some more markets to my trading repertoire. These markets include 30-Yr Bonds, Crude Oil, and Gold. I also follow the YM during the day because it is highly correlated with the ES, but I trade the ES. Someday I will try trading the YM instead.

 

Anyway, here are my questions...

 

  • Do you plan to stop trading Crude Oil? If so, why?
  • Do you daytrade or swing/position trade?
  • When you do trade energy, do you trade the pit-traded or electronically-traded contracts?
  • Would you recommend only dealing with electronically-traded futures because of slippage, etc?
  • What other markets do you trade? Do you trade agricultural commodities?
  • What other markets would you recommend trading?

 

I would like to hear from folks who have traded markets other than the index futures. I only plan on daytrading the ES and Bonds, and swing trading (i.e., hold up to a week or so) the other markets. By the way, is the 10-Yr Notes better to trade than the 30-Yr Bonds? I think following other markets to swing trade when they are about to move is a good way to enhance my trade plan without requiring too much more effort. Thoughts?

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Hey Raul,

 

I agree with you that this website is attracting good people willing to share. I certainly gravitate to your posts as well. :)

 

I do have a few questions for you, or anyone else, and apologize if this is off-topic for this thread. I currently daytrade the ES and swing trade the Euro. I also plan on adding some more markets to my trading repertoire. These markets include 30-Yr Bonds, Crude Oil, and Gold. I also follow the YM during the day because it is highly correlated with the ES, but I trade the ES. Someday I will try trading the YM instead.

 

Anyway, here are my questions...

 

  • Do you plan to stop trading Crude Oil? If so, why?
  • Do you daytrade or swing/position trade?
  • When you do trade energy, do you trade the pit-traded or electronically-traded contracts?
  • Would you recommend only dealing with electronically-traded futures because of slippage, etc?
  • What other markets do you trade? Do you trade agricultural commodities?
  • What other markets would you recommend trading?

 

I would like to hear from folks who have traded markets other than the index futures. I only plan on daytrading the ES and Bonds, and swing trading (i.e., hold up to a week or so) the other markets. By the way, is the 10-Yr Notes better to trade than the 30-Yr Bonds? I think following other markets to swing trade when they are about to move is a good way to enhance my trade plan without requiring too much more effort. Thoughts?

 

My reasons as to stop trading crude oil are more fundamental than technical. I am an old dog and I learn that one need to create a balance between both.

I trade what I see but I always keep my ear on the ground.

 

I shorted Crude since $77.00 a barrell and now is $57.00 I sincerely don't want to play greed.. Energy sectors are very much like the "flavor of the moment" and sometimes the crowd mentality changes from one side to the other in a heartbeat. There's a seasonal side on energies as well. I advise caution on this market.

 

Agricultural is my probably favorite market to trade. My preferences in this order

 

1)Corn and ethanol

 

2)Soybeans

 

3)Cattle

 

4)Cocoa

 

5)Sugar

 

6) If I need to activate my supply of adrenaline - pork bellies

 

These markets are slow-paced and they trends very well. Like every market, you need to keep your ear on the ground and paper trade until you get the hang of it. Ther's some seasonals for comodities but they're not as fast-moving as the one's for energy.

 

Soybeans is a good market for start.

 

I love silver - better than gold.

 

This christmas you'll find me on heating oil for sure. Natural gas is another one I trade but I am not interested as inventories are to the top.

 

I trade all markets electronically only. It's better to be safe than sorry. I had big issues with pit-traded markets in the past. Just my experience.

 

The only market I swing trade is Forex. My favorite instrument - EUR/CHF Unless EUR/USD make me an offer I can refuse (1.18-1.20 area) I won't trade it. But it's a good market to trade on a long term basis.

 

About EUR/CHF This is the reason why I love this instrument

 

The swiss franc will never move strong against the Euro. I don't see it happening at least in our generation. The swiss franc is a recognized currency only because of the worldwide perception that switzerland is a stable-solid country. This is a long story I can talk about it later, I'll get to the point

 

Look at EUR/CHF on the 240 min chart. You'll notice that most of the time this instrument is on a range bound for almost the whole year . Just perfect for a bracket trading. Just be careful on geo-political stuff as it rocks this instrument like a hurricane. I trade EUR/CHF for the whole year. Just change my position from long to short and of course take profits.

 

I don't trade bonds by the same reason I never traded YM - just lack of interest.

 

Raul

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Thanks so much for your thorough response. I plan on reviewing it and following up on your suggestions to see if those markets appeal to me too.

 

Some more questions if you don't mind...

 

  1. You mentioned that you only trade electronically, aren't all the agricultural markets traded in the pit?
  2. Why do you prefer silver over gold? They seem to be highly correlated to me.
  3. What is your average holding time for these agricultural trades?
  4. What do you use for your technical analysis?

 

I like the point you made about trading the EUR/CHF, but I have to be honest with you that the Forex market turns me off because of the "bucket shop" reputation that the Forex brokerages have. That's why I've been sticking with the currency futures. I don't want to pay the spread. Do you use Oanda for forex? Thanks again for your post.

 

Antonio

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Thanks so much for your thorough response. I plan on reviewing it and following up on your suggestions to see if those markets appeal to me too.

 

Some more questions if you don't mind...

 

  1. You mentioned that you only trade electronically, aren't all the agricultural markets traded in the pit?
  2. Why do you prefer silver over gold? They seem to be highly correlated to me.
  3. What is your average holding time for these agricultural trades?
  4. What do you use for your technical analysis?

 

I like the point you made about trading the EUR/CHF, but I have to be honest with you that the Forex market turns me off because of the "bucket shop" reputation that the Forex brokerages have. That's why I've been sticking with the currency futures. I don't want to pay the spread. Do you use Oanda for forex? Thanks again for your post.

 

Antonio

 

 

Ant

 

Sorry for the delay. This time of the year change of weather put a toll on me.

 

I only trade energy contracts electronically, I should make that point clear.

 

Yes agricltural Mini's are pit-traded contracts and I personally had no problems whatsoever.

 

Ethanol has 1 month contract period the rest are 2 months.

 

I prefer silver because tends to stick better on pivot points than gold.

 

Pivot points are my main tool for technical trading. I also use S/R levels but I also look for any price in particular in which the market had a turning point within the past 4 or 5 days. My trading is very simple: I watch how the market gravitates on these levels and I act accordingly.

 

The order of my preference on Agricultural contracts is based on how they perform around pivots and S/R levels.

 

I don't use a market maker for Forex. I will tell you in private what I use.

 

I am so sorry for my short answers but I'm not feeling very good lately

 

Regards

 

Raul

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Please excuse this post as it may not be in the right section. I have only recently joined and have not posted before.

 

With trading the Mini Dow [$5] the electronic trading hours are from 18:15 to 16:00 [Chicago Time] the next day.

If I wish to trade only the [regular?] hours do I use 08:20 to 16:15 CT when the NYSE is open OR do I use 07:20 to 15:15 CT which is the trading hours of the DOW $10 Futures contract?

 

I am using eSignal and I wish to have my charts plotted for the regular hours.

 

I apologise if this post is not in the right forum.

Thanks

Robert

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Hey Robert! No worries, we'll get you the answer :) I the charts I have setup for myself on the YM are from 7:30-16:15 CST. It's always given me a clear picture of the pivots and the Market Profile pivots as well.

 

Welcome to the boards!

 

Chris

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Hey Robert! No worries, we'll get you the answer :) I the charts I have setup for myself on the YM are from 7:30-16:15 CST. It's always given me a clear picture of the pivots and the Market Profile pivots as well.

 

Welcome to the boards!

 

Chris

 

Thanks Chris

Robert

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