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Old 08-17-2008, 11:03 AM   #1

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NQ Size Limitations?

I'm still only trading 1 lot in the NQ but i plan on adding some more size soon. I'm wondering what the max size you guys think (or know?) that market can handle?

I've heard from traders that the ES can handle 500 contracts on a normal day without moving the market more than a tick, and 1000 contracts on higher volume days without major slippage.

But what about the NQ? Its obviously a smaller market with less liquidity. I'm just wondering what you guys think that market could handle without big slippage. I have seen guys trade 20 lots in it without problems but i've heard that maybe 50 lots would be the upper cap on size?

Anyone know any different?
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Old 08-17-2008, 03:35 PM   #2
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Re: NQ Size Limitations?

Don't leap before you look. Try a 5 lot. Get a feel for it. Then scale up accordingly.

Moving the market a tick is NOT a big deal. Call it the price of entry (or exit).

Moving the market a full point (4 ticks) would be more of an issue here.

We would all want to be big players but have to recognize our limitations when starting out.
 
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Old 08-17-2008, 04:02 PM   #3

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Re: NQ Size Limitations?

Oh god no... i'm not even getting close to that. I'm just gonna work myself up 1 contract at a time with a close eye on my equity curve, and account size risk/contract.

I'm just curious what potential limitations may be there years down the road.
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Old 08-17-2008, 06:10 PM   #4

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Re: NQ Size Limitations?

When you are at a point that your orders are so large that you are moving the market, you probably will have the capability to trade pretty much any market you want. Concentrade on becoming consistently profitable and the rest will take care of itself.
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Old 08-17-2008, 09:01 PM   #5

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Re: NQ Size Limitations?

Quote:
Originally Posted by daedalus »
I'm just curious what potential limitations may be there years down the road.
Who knows what the volume will be like years from now. Probably more, but who knows. Maybe a new product will come out that will kill futures.

Just focus on making money w/ 1 contract for now.
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