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Brian wrote:
>
> Does anyone have any comments on trading Mid-Am versions of the major
> contracts ( TBonds, Soybeans, Japanese Yen etc.). I am looking to trade
> Mid-Am because I have a relatively small account, but I am concerned
> about liquidity and any price differences between Mid-Am contracts and
> their big brothers on CBOT etc.
>
> Is it prudent to use EOD price data for CBOT TBonds in my Tradestation
> system and take trading signals from this data and place orders in
> Mid-Am TBonds?
>
I have traded many of the Midam contracts, even some of the less liquid
ones in 100++ trades over 3 years.
With almost no exception the fills have been very reasonable. Maybe a
tic or two worse on mkt on open, altho it's sometimes hard to know what
you would have gotten in the big mkt. 1-3 tics on stops, some of which
I might have seen on the big contract anyway. Stops are reliably
triggerred when they would be according to the big contract, and not
triggered when they shouldn't. Limit orders are filled when expected;
however the primary mkt. may need to trade a couple tics beyond your
price to get a fill in the Midam.
Prices in the Midam track the big contracts very closely. There might
be a couple tic difference in the high or low. In the more illiquid
ones the range may be smaller unless there was Midam trading activity.
Thus it's better to do your analysis on the big contract's chart.
Conrad Bowers
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