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I know I have to account for contract and tick value, and have manually traded them for many years (scalping) (few seconds in and out) , i want to now look at them on charts and apply technicals / indicators for a longer term basis 1 , 3, 5 min charts.
I dont intend to trade them via ninja, just chart
But wanted to know if anybody had worked out an efficent manor in which to chart them, how well they chart, and any issues with the the data aligning (birthday)
Also what types of charts you use and indicators that you find work well
Any info wI'll be much appreciated
Thanks
Can you help answer these questions from other members on NexusFi?
I'm trying to understand spread trading futures and not getting very far. I understand the different definitions of spread trading and am focusing on intramarket spread trading. I understand that means to trade the same market but different contracts. …
Here is a chart with spread candelsticks of ES/NQ
I want to learn the technique of spread trading but there is not much written material on it.
Can you elaborate your method of spread trading? Are you trading spreads of same month/calender spreads?
what you have to do is account for differences in contract value and quote the spread in money terms
This is done by accounting for the value of one point / tick
the value of a ES contract is 70,000 usd
the value of a nq contract is 55,000 usd
so there is a difference of 15, 000
In effect you would find a ratio that have you the least difference
3* es = 210,000
4* nq = 220,000 so diff is 10,000 but on a larger position so the actual error is allot less in % terms
however you can still trade 1 againgst 1 if that your size or what you feel comfortable with.
If scalping it wont make much difference as you wont be holding positions that long.
however if one contract was work 70,000, and the other 40,000, you would NEVER trade this 1 against 1, even short term scalping, would have to be 1 against 2
so chart the spread accounting for the contract values
