Reliable binary option signals38 comments
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To read part 1, click here. A pretty big inflow of questions, comments and concerns regarding Russell e-mini futures were received. A market which is working higher from point A to B or lower from point B to A can do so in more deliberate fashion if it has less sideways pressure. When volume and open interest fall below certain zones, methodical price action turns spastic and erratic.
Questions on volume and open interest are something I get plenty of on a regular basis. Block orders to start or end a session will send the tape absolutely haywire in split seconds.
That of course is due to big block orders being filled across several strikes which then dominos other resting stop orders that trigger others in tsunami fashion.
These violent whips happen in mere seconds, with absolutely no time to react for trade entry or management decisions when they go off. One of many reasons to ALWAYS have resting stop-loss orders in place when trading e-mini futures, regardless of market or symbol.
For example, a short trade at Said another way, price movement back and forth through a 2-tick spread can just as easily result in a market ticking back in your favor when stopped instead of pushing further for greater than expected loss. The assumption is a stopped-out trade being one sided event. Keep in mind there are orders resting at every strike going the opposite of yours.
If your buy stop at Two sides to every order on each strike. When trading less liquid instruments, slippage can go either way depending on which size is greater at the strike. If your trade happens to be within the bigger size collectively, your slippage if any will be negative. If your trade happens to be within the smaller size collectively, your slippage if any will be favorable. Many times there will be no slippage in TF at all… positions entered or exited are filled on the mark.
Of course there are reasonable size limits to how many TF contracts can be traded before persistent slippage becomes an issue. Someone trying to fill 20 contracts opened long or short on limit orders will experience numerous partial fills on profitable trades.
Losing trades will always fill complete orders because the market is moving against you. Heck, you can fill hundreds of contracts between entry and stop if the market is On the other hand, if the same scenario sees TF price action trade to Market orders to open will completely fill, with some degree of slippage involved. What commonly happens with bigger orders will be for example Remember, there is never a problem getting complete fills in any market on all losing trades when price action moves against.
There is often a problem getting complete fills in the TF specifically when price action works out in favor of the trade. If trying to turn contract lot positions short for example at If the market is trading below there and expected fill happens with a price rise from below into the Therefore, if price action stalled out just below If price action rises through The net average fill would be If price action is trading above and falls thru your trigger on a breakdown sell, the entire position would fill as price action dropped in favor of momentum lower.
Staging orders across spread tick strikes to enter on pullbacks lessons the occurrence of partial fills, within reason. No one is going to fill TF contract lots regularly without significant slippage or partial fills needing to be dealt with. However, I highly doubt anyone here in this conversation is stumped with dealing through lot TF flips anyway.
This is what keeps large spec and commercial traders out of the arbing business with TF futures. Too small for big-money manipulation, plenty big enough for retail traders to aptly profit from. During that time the intraday ranges were rather wide and usually directional, be it up or down. Compare that to average volume traded during the first four sessions of A total of 75k to k contracts were turned, inside four rather narrow-range sessions.
At a time when traders would expect normal to high volume and expanding price action, TF futures have begun in a funk. When volume returns to that k daily average or above, we should expect normal price behavior to follow suit.
For this moment in time the TF is too thin for trading any amount of multiple contract size consistently on fills. All of these varied markets have some influence on the broad stock market at times.
All of them fail to have any effect on leading the broad market at other times. Relationships like that are always temporary and usually fleeting.
Whereas the price of crude oil rising once pushed stock prices lower, rising crude prices now signal stock markets going the same direction. Well, when crude oil prices were briefly at nosebleed levels, it was considered inflationary pressure on the overall stock market.
It was also used as a quasi-hedge for USD prices versus other currencies as well. The same has been done for gold futures at other times.
None of those temporary market-influence tools can be relied upon for years of unchanging, dependable leading indications of what the general marketplace i. Nasdaq futures NQ may be considered the smoothest overall e-mini to trade, relatively speaking. Dow 30 futures YM have their fan base as well. TF futures seem to be in a state of development towards stability and consistency of performance. They blossomed well from September sole listing through mid-December in volume and open interest.
Since the start of a few days ago, traded size has taken two steps back from earlier peak. When volume and open interest reaches prior average highs or beyond, a return to normalcy should follow. Austin Passamonte is a full-time professional trader who specializes in E-mini stock index futures and commodity markets. Austin trades privately in the Finger Lakes region of New York. At Connors Research, we are using it as an overlay to many of our best strategies to make them even better -- now you can, too.
You can find more of Austin's work at his website CoiledMarkets. The Connors Group, Inc.