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>Anything related to the NDX is remarkably liquid, whatever the
>asset is.
The tick volume in the mini NQ is about 20 times that of the
large ND. Bob Fulks posted that the NQ's were also more liquid
than the QQQ's.
>NDX is only updated every 20 seconds or every minute depending on your
>vendor.
Sorry to be picky, but it should be every 15 seconds, i.e. 4 ticks per
minute, 1560 / day. If the vendor is sending less they are dropping ticks.
BW
>From: Fred <srqblue@xxxxxxxx>
>To: Ernie Bonugli <ebonugli@xxxxxxxx>
>CC: omega-list@xxxxxxxxxx
>Subject: Re: Need lesson on trading futures
>Date: Fri, 11 Jan 2002 12:05:21 -0500
>
>On Fri, 11 Jan 2002 10:26:44 -0600, Ernie Bonugli <ebonugli@xxxxxxxx>
>wrote:
>
> >
> >I currently trade QQQ using the NDX signals. Excluding, the cost
> >issues, would I achieve the equivelant result trading the ND
> >(future contract)?
> >
>
> > But I afraid that
> >the volatility of the actural futures contract may eat my lunch. And
> >possibly render my system useless.
>
>There are a variety of opinions on this. Here is a test you can run
>to determine what would be best for you.
>
>Will you be holding the futures overnight? How much capital will you
>need to do this? Determine the amount you will need to trade your
>system (some systems exit a portion of the trade and use a trailing
>stop the on remainder--this would require multiple contracts).
>
>Using this same amount of funds apply it to the QQQ, and QQQ options
>and emini or large contract, recording the ask price of each when your
>system makes a buy. Record the bid price(s) when your system gets you
>out. Anything related to the NDX is remarkably liquid, whatever the
>asset is.
>
>Use the results to determine what value you will give for leverage and
>what corresponding risk you are willing to assume. This will change
>dramatically if your system holds overnight.
>
>If you use any discretion in your trading watch the E-mini prices
>instead of the NDX for entry and exit. NDX is only updated every 20
>seconds or every minute depending on your vendor. E-mini is of course
>updated every trade.
>
>Please reveal the results of your testing.
>
>Fred
>
>
>"Success is the only test of genius" -R.Adm Daniel Gallery 1901-1977
>
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