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When ES is ranging, what alternative instruments do you recommend?
I started trading the ES, but on some days it's just ranging and not producing any setups for my system. What non-correlated instruments do you recommend for those days instead? Goal would be that I can trade every day. And since I subscribed to Kinetick's CME data, preferrably CME instruments. Decent volume would be nice too.
Thx, Chris
Btw: I day-/swingtrade mostly using a supply/demand zones, vsa and volume profiles, if that's important.
Can you help answer these questions from other members on NexusFi?
I have a basket of 24 US Futures contracts that I continuously watch and trade using the same technical analysis and strategy all across.
They are all trading on CME exchanges, so it shouldn't be a problem.
You can try your take on my watchlist:
Equity Index
ES
NQ
YM
NIY
Currencies
6E
6J
6B
6A
Treasuries
ZN
ZF
ZB
ZT
Energy
CL
NG
HO
RB
Metals
GC
HG
SI
PL
Agriculture
ZC
ZS
ZW
LE
Successful people will do what unsuccessful people won't or can't do!
DAX is trading well these days, but better before ES opens although good recently generally slow in the US Session, YM and NQ seem to follow ES closely so not much point there.
I'd trade the ranges, but would try getting up for the European open and trading the EU indices. Of course its a big difference in hours if you're in the US, but worth it for the potential setups if they match your needs.
Unfortunately it appears much too often volatility these days is heavily correlated across instruments. Once a macro story comes out they're all hopping, otherwise it's a wait and see situation.
Personally I go between ES/YM/NQ and CL, so it's equities vs a commodity. They constantly swap correlations, one day both are moving together tick by tick, the next they're moving opposite.
If you take a look at Soybeans ZS at 3/31/15 12:00 P.M. That one bar, for ever more should tell you how dangerous Soybeans are. Are Soybeans that illiquid a commodity to produce that one bar? That one bar alone.
I think the above quoted gentleman is playing with dangerous by diversifying so far with his futures.
As to narrowing down safe trade able instruments, I only see Oil, Gold, and the E-mini.
That makes the field a bit simpler.
If anyone can clue me into any other futures instruments to look to that are highly liquid, let me know.
Perhaps, just three are enough.
I have not yet explored the charts on natural gas enough to have an opinion on that.
When /ES ranges, it's generally 8-12 ticks. Not exciting but there is money to be made. Precise entries help.
I don't mind trading in a range, but during a trend with very little momentum that goes on for a while, I will generally go trade oil. Would not recommend trading oil as a foray out of boredom. It can slap you hard. Harder than the spoos will. I track both markets closely. And avoid anything that isn't liquid.
I traded NQ for a while, didn't lose any but didn't really like it. Felt like a thinner market.
