IWM vs. QQQ and SPY

I just looked at this.... Average True Range.. QQQ 1.38%, SPY 1.0%.. IWM 1.82%,,, that means that the range on IWM is 32% more than QQQ and a whopping 82% more than SPY... why does nobody trade IWM? the options have good volume and good spreads.

 

IWM, QQQ and SPY have respectively 21, 17 and 13% (annual) Implied Volatility.

 

a) The Bid/Ask spread for IWM is very wide
b) The total value of all 2000 companies in the Russell 2000 Index (which IWM uses) is about half the value of Apple alone.

 

Don't trade ETF's or Ops but futures show ....

ES $12.50 a tick, $50.00 a full point
RTY $5.00 a tick, $50.00 a full point

I see ATR(21) currently = rolling month as:

ES 66.74
RTY 46.10

Basic math sez (currently it does change somewhat over time) ES is the one.

%'s are important comparing moves, but notional, margins and points per tick also must be factored in.

 

That's the daily ATR(21) x point value
But some are more liquid than other.

 

Tru dat. Left out that NQ is tippy tops.

 

i trade rty, not iwm

 

Futures like ES NQ RTY YM are good for day trading.

Sometimes, they move in tandem.
Sometimes, they have their own minds.

Sometimes, they move decisively/smoothly
but mostly they move jerkily/choppily/chaotically.
So pick the one that moves decisively/smoothly.

 

Isn’t it … a signal ? When they all move together ?

I made a normalized average of the averages,
On a intraday basis there was no big difference.

 

When all move together (ie good intercorrelation), I will trade with a big volume.