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Futures strategy and new Micros.

May 10, 2019

The Tradecharting focus of looking for TC signals off 15 min charts needs some revision with the US stock indices chopping under all time High levels and in the wait for a US trade tariff talk outcome. The last trading session revealed no TC signals off the 15 min chart time-frame but there were TC signals on the DJIA and NASDAQ-100 futures on the 5 min charts that triggered near the start of the US trading session. TC focuses on looking for low-risk initial trade set ups and the launch of the new Micro futures accounts on May 6th makes this trading more accessible. Micro Futures are 1/10 the size of the classic E-mini futures accounts.

 

The following chart shows the multipliers for a point on each of the major US stock indices:

 

Index Micro E-mini Multiplier E-mini Multiplier
S&P500  $5 $50
NASDAQ-100  $2 $20
Dow Jones  $0.50 $5
Russell-2000  $5 $50

NB: Commissions may vary for different trading platforms.

 

Stock Index Charts from Thursday 9th May 2019:

S&P500: ES 5 min: there was no TC signal on either the 5 min or the 15 min chart.

 

 

DJIA YM 5 min: there was a TC signal that gave 216 points for over 4 R. This trade would be best closed off with the new 3/7 EMA cross.

What does this initial risk translate to in dollars:

  • YM-mini: a 50 point Stop at $5 per point = $250 risk.
  • YM-micro: a 50 point Stop at $0.50 per point = $25 risk.

 

 

NASDAQ-100 NQ 5 min: there was a TC signal that gave 53.25 points for over 4 R. This trade would also be best closed off with the new 3/7 EMA cross.

What does this initial risk translate to in dollars:

  • NQ-mini: a 12.75 point Stop at $20 per point = $255 risk.
  • NQ-micro: a 12.75 point Stop at $2 per point = $25.50 risk.

 

 

Summary: Dropping down to the 5 min charts may be more profitable under current market conditions and keeping an eye across a range of Futures markets is advised as well. The launch of the new Micro futures trading accounts makes Futures trading more accessible for traders with smaller accounts and helps to minimise risk.

 

Note: all trading carries risk and traders should only trade with funds they can afford to lose. Do your own due diligence and seek advice before any new trading venture.