[brownsfan019]

For those that trade multiple markets, do you exclusively look for your setups on each respective market or do you initiate a position if one of your correlated markets shows a trade?

Example: we know that the US indexes move in correlation most of the time. Very rarely are you going to find the ES down while the YM is moving up. Knowing that, could you not take a trade on more than one market if you get a signal on one of your charts?

Here's my thoughts - as I've been looking at better exits with WRB's and such, I've also noticed that if I have a YM trade and it works, odds are that an NQ trade would have worked as well, even if the NQ did not provide an actual setup for me. The thought process being that if my analysis is correct, why not exploit that on multiple markets.

If we assume that one can implement that, you could trade some sort of combination of the ES, YM, ER2 and NQ.

Now, I know the next question will be why not just focus on the one and trade larger lots there. Good question. First, unless you are just trading the ES, trading larger lots could create some slippage issues. Second, and more importantly in my opinion, while your analysis can be correct it's not always clear to tell which market will provide the most bang for your buck. In other words, if you just trade the YM at $5/pt, your 'opportunity cost' is another consideration.

Anyways, just thought I'd share something that hit me like a ton of bricks this week since we have some great volatility here with us this week.

PS
Not exactly sure what part of the forum this should be categorized under, so feel free to move it mod's if need be.