Live Trade 04/13/07
Posted on Friday, April 13, 2007 in Live Trades
A nice scalp trade that nailed 9 YM (Dow) points. Nice way to end the week. What do you guys think, have you had enough of this setup and we should go on to the next? Or would you like to see more of this?
Have a Great Weekend!
Dave Johnson
Friday, April 13 6:53 pm
If you have any other setups you’d be willing to share, I’d like to see them. Seems like you have a good library of this setup if anyone wants to go back and review it.
Thanks.
Friday, April 13 8:06 pm
Hey guys, great stuff as usual. I have a question not specifically about the video. I guess I could have emailed it in but I thought I would ask it here in case anyone else had the same question.
Spy Vs SP EMini.
Obviously you guys prefer to trade the Minis, and it certainly seems the way to go. However there’s tons of volume on the SPY and QQQQ, tops the list for stocks and ETFs, someone is trading these things.
Here’s some points I thought of:
Commissions: I think you stated $4.8 for round trip per contract? With the new(?) IB pricing that would look to be $5 for the same amount of SPY. With the fix rate price of $8 per trade at some brokers, that would seem to be cheaper past 4 contacts worth. However I’m not sure I trust those guys fills.
Spread: Spread of .25 on the Emini. vs 0.01 on the SPY. That works out to $12.5 per contract for Mini, and $5 for equivalent amount of spy. Certainly tighter the spread the better. Favor the SPY?
Leverage: Clearly no contest here. Can get 20x? of leverage on the Mini. Max 4x on SPY and you need to pay Broker margin fees. One thing not clear to me, do you need to pay broker margin fees on any of the Mini Leverage?
Fills: Large sums would favor the Minis, though it does look like you could get clean fills on at least 2500 SPY. Have not tried yet so I can’t say at what point fills would become a problem on the SPY.
Taxes: 60/40 on the futures right? That would seem to be a clear win for Minis.
Any other issues I’m missing? Thanks for any replies.
Friday, April 13 10:58 pm
Hi Dave,
Great videos. I’m a newbie to your site, and have been watching your live trades for a couple of days.
Am curious what’s your entry strategy, and how you set profit and stop loss targets based on the bands - which of your videos would be a good introduction to this?
Saturday, April 14 3:00 pm
Brig thanks for the comment.
The spread is not .25 cents it’s 1/4 of an SP500 Index point. Big difference.
Remember the SPY is 1/10 the value of the SP500 index and the futures are equivilant to the index. SPY’s spread in equal value is 10 cents. As an example SPY’s close on Friday was 145.32. Which equals 1453.20 on index. So each penny change in the ETF is equal to 1/10th of an SP500 index point. Whereas the ES futures are 1/4 point. Certainly an advantage to the SPY but not as much as you may have thought. Whereas the YM the dow futs are 1 for 1 on the index.
Check out the PDF on the CME site for an answer to your other questions. They summarize much better than I can.
http://www.cme.com/files/EMinivsEtfs2.pdf
Saturday, April 14 3:04 pm
Shan
I initially set my stop and target based upon the size of the keltner bands. If you click on the category live trades above I mention the stop and target placement in each of these.
Also the band size determines how many contracts I trade. Ie larger bands = smaller trade size. This allows me to have a set dollar risk level.
Monday, April 16 6:48 pm
The live YM & ES trades are definitely helpful Dave and keep them coming. Thanks for everything you do for us.
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