ER2 vs YM and ES

[dupaski 10]

I trade mostly the YM and some ES, however I've been looking at the ER2 and am starting to get interested.

 

How does it compare with YM and ES with regards to liquidity and slippage? It certainly seems to have the volatility to present some potentially good opportunities

[walterw 10]

dupaski : it depends on your financial goals... es is the big 747, huge volume, small range, ym is a 737, medium term, russell is a learjet, small volume compared to es and hell of volatilty.... In my case I did trade russell for years, now since I am on TL got to love ym because still has a decent range and its not so volatil like russell... also ym has a better internals response so.... depends on your trading style and also financial objectives... per example I never traded more than 30 contracts on russell, you may trade 200 without any problem on es.... so... thats about it.... cheers Walter.

[GCB 10]

ER2 is actually more liquid than YM. It's kind of like YM on cocaine really. It give you the most potential for gains, but for losses as well, and you have to be willing to deal with the volatility. Slippage is not bad at all. I usually got filled at my stop price. YM is easier on my nerves. But if you have the discipline and nerve to trade ER2 then it does tend to give bigger percentage moves.

[torero 10]

Yes, most times slippage is 1, 2-3 on strong news announcements. I agree volume is more on ER2 than YM on many days. Also, I find ER2 trend on more $ amount than YM. Soultrader has traded both, he can tell you the difference.

[torero 10]

Target met. What a relief before the FOMC time!!!

 

[TinGull 10]

I've traded both, too...and I can tell you ER gives me a heart attack! YM fits my personality to a T, so I feel like we're meant to be together. ER is fast paced, jerky, volatile....and YM is smooth. It's kinda like... Sex Pistols vs Barry White. Insane vs extra smooth.

[torero 10]

"Danger is my middle name..." Ha ha ha.

[brownsfan019 17]

I've traded both, too...and I can tell you ER gives me a heart attack! YM fits my personality to a T, so I feel like we're meant to be together. ER is fast paced, jerky, volatile....and YM is smooth. It's kinda like... Sex Pistols vs Barry White. Insane vs extra smooth.

 

Well said Tin!

 

I am the same way - while hindsight trading looks great on the ER2, you must be very quick and nimble there. There's no waiting around for you to make a decision. The YM doesn't always move as 'fast' and you can take that extra second or 2 to get your order out there.

 

I would also add the NQ to the equation as well. It's kind of a mix of the ER and YM - not too fast, but not too slow either. Some days the NQ is my bread and butter. Why do some people ignore this market? It can provide some great moves while waiting for the YM to do something.

 

I also like the EC, so it has nothing to do with tick value since the EC is $12.50/tick.

[The Bear 10]

ER2 is actually more liquid than YM. It's kind of like YM on cocaine really. It give you the most potential for gains, but for losses as well, and you have to be willing to deal with the volatility. Slippage is not bad at all. I usually got filled at my stop price. YM is easier on my nerves. But if you have the discipline and nerve to trade ER2 then it does tend to give bigger percentage moves.

 

Really? Thanks for this information. I'm going to look into this ER2. One of the reasons I don't trade YM as much anymore, is, for the most of the time, I find it a slow market, and I'm not willing to watch it everyday to wait for it to really explode.