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Awesome input Dogpile.
Question, on the YM I've heard there is less slippage, do you think that's bs?
I mean the DOM on the ES is quite deep so that could effect your fills BUT the 4 ticks per point gives you what I see as some wiggle room with more opportunities to exit/enter.
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This has been debated on ET before.
The thought process is:
YM tick @ $5
ES tick @ $12.50
Therefore, the 'cost of slippage' is less on the YM if you assume that when you place an order on the YM and ES, there is no slippage. Since the tick value is less on the YM, it costs you 'less' to trade here.
The serious assumption here is no slippage. The YM trades about 1/10 the volume of the ES so if you trade any decent size, you will see slippage on the YM; whereas you may not on the ES. So, the question then becomes how much slippage are you seeing on the YM. For every 2.5 YM slippage points, you'd do the same on the ES.
So in theory the YM could be 'less expensive' when trading small lots. When trading larger lots, you will see some slippage AND you can EASILY send some red flags. What I mean is, if you throw a 20, 30 or 50 lot on the YM, that will not go unnoticed. Throw a 100 lot on the ES and it's just normal trading biz. When trading larger lots, the last thing you want is to send a red flag out there in my opinion.
In the end, the ES is where the serious money is at. I suggest trading there as soon as possible b/c that's where you will end up trading, whether that is 3 mo's or 3 years from now. The ES has it's own characteristics as you guys have pointed out a few here, but it will take some serious screen time to see more.