I Want an E-mini Trading System That Is Fool Proof
August 3rd, 2010
I get questioned ofttimes about how to day trade the e-mini contracts. It seems that traders , commonly individuals just starting their trading career , are seeking for a "Holy Grail" when trading emini contracts.
Such a system doesn’t exist.
Live Emini Futures Trade
There are many theories out there on the nature of market and price patterns , the most well known being Efficient Market Theory, Fundamental Theory and Technical Theory. There are many of variants on each theory , and they are all flawed in some manner. The random nature of the equity market price action has prevented the absolute err free system from ever being realized . I guess the most probable reason for this dicotomy is the varied cycles the stock market assumes throughout the trading year . The trending market is the simplest to trade, but the market doesn’t trend on a unvarying basis, though it frequently takes on a positive or negative bias throughout the trading day.
New traders often buy several high priced trading systems before they realize that a superior system is gained through experience and knowledge. A good scheme is to learn one contract and the nominal pricing patterns for that contract. I generally advise beginninging with the YM (Dow emini) for new traders as it seems to have the least "noise" to tackle with in day trading emini contracts. I have found that most traders will start with the ES (S and P emini) and have little success, then switch to trading the YM and see the light . There are a host of theories for this paradigm , and most point to the possibility of excessive black box, or machine-driven, trading on the ES contract. Like many factors involved with trading, the evidence for the black box theory is anecdotal , at best. My general belief is to begin with the YM because it is consistently easier to trade.
As of late, I have been bracket trading the YM with 25 point stops and limits with good results . I do, on occasion , use trailing stops. I think it is a matter of personal choice . For me, I like to not use the trailing stops, as I often lose profit on a momentary pullbacks in the contract price.
I also advise trading with a methodology with the CCI as a primary indicator. There are many CCI systems available and they seem to work pretty well and the best one is available at no cost . One very popular system has been around for a long time, and can be located with a simple search using the keyword "CCI."
Day trading emini contracts can be nerve wracking and less than profitable from the beginning , and a calendar month or two spent "paper trading" on a demo account will save most people a lot of money. If you get competant enough you can put together 5 days of profitable trading on a consistent basis, you are ready to trade with a real account. Start with 1 contract because live trading involves a different emotional state that paper trading. I know that is a difficult concept and hard to digest at face value, but it’s true nonetheless.
Learn a superior system and get some prolonged experience in trading and you will be profitable in trading emini contracts.
More aboute E Mini Day Trading:
Rockwell Trading Futures Day Trading e-mini’s Home Study Course
Learn to day trade the futures markets -Eminis, Commodities and Currencies.
Emini trading – a form of day trading – is a common method these days for making good money. Although day trading can happen at any market place, the most common places for day trading are foreign exchange and stock markets.
Should You Day Trade Stocks or Futures Contracts?
In my opinion, though, trading futures contracts, especially the e-mini contracts, have a multitude of individual advantages so as to make them a prohibitive favorite for day trading.
Suppose now that you one thousand dollars in your futures account with a broker that set the emini day trading margin at only $500. Suppose also that what you wanted to trade is ES, the emini contract of S&P 500.
Posted in 
Tags: