I have been doing some paper trading in the last months in the ER2. I noticed thatThe underlying cash index exhibits less noise, is not as jumpy. Do you think that one can be succesful with trading the future using the cash index ?
Typically, the exchange supplied quotes of the cash indices are only updated once every 15 seconds. Some are only once a minute. This may be why they seem less jumpy. Bob
watch on a daily basis how the er2 moves in relation to the movement on a nyse tick chart ---- http://www.ttrader.com/mycharts/display.php?p=35903&u=macroevent&a=MacroEvent&id=1511
This is like...newbie error 101! That's virtually impossible. May have worked 4-5 years ago. Not today. At least not for daytrading purposes, anyway.
No, it's not even close. It's because HALF of the stocks used to calculate $RUT probably trade once every 5 minutes on average!
Yes! Unless you are trying to scalp (always a fool's errand, imo), you can trade the futures when you get an indication/signal from the cash index. Futures are leveraged, thinner, jumpy, and tend to overshoot. Trading off of the cash with a proper stop is OK.
Hi everyone, I appreciate your responses. Now could someone just tell me where the RUT.X is traded ? Which exchange provides the quotes ? Thanks