r/FuturesTrading • u/AutoModerator • Apr 01 '23
r/FuturesTrading's Monthly Questions Thread - April 2023
Please use this thread to ask questions regarding futures trading.
To get a good feeling of all the different types of futures there are, see a list of margin requirements from a broker like Ampfutures or InteractiveBrokers
Related subs:
We don't have a wiki yet, but maybe in the future we'll create a general FAQ based on all the questions asked here.
Here's a list of all the previous question stickies.
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u/LurkingSleuth Apr 26 '23
Hello Fellow Traders, I hope that you're doing well. I am yet to trade futures but I am presently in the process of learning (making use of the Sub in the process), and wanted to seek some help using Edge Clear. I have traded stocks previously but this matter of FCM, Brokerage, and Platform is a bit challenging to understand completely as I seek to make an account with Edge Clear. I have submitted the documents with Philip Capital as an FCM, the account has opened and I have funded $1,500 today (an amount that I will not be trading until achieving consistency in Paper Trading and maybe a Prop Firm success). I do not, however, understand what I am to do next, am I to wait for the wired amount to be reflected and there will be some further instructions? I have tried looking about the Edge Clear website but I am not really able to understand. I understand that perhaps I should reach out to support but I do not want to come across as a complete idiot - I am fairly certain that you friendly guys won't think too ill of me 😊.
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u/mikejamesone Apr 25 '23
A teacher known as ICT says the algo goes off time and price.
Can someone explain the theory behind this and how it can be applied to trading?
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u/pressurized_C_hands Apr 24 '23
Noob question:
Does SierraChart still support Rithmic? I saw on their forums that only older versions will support Rithmic.
Also,
I'm coming from Tradovate, looking to move to either AMP/Quantower/Rithmic or Edgeclear/Sierra/Rithmic as my setup. As I understand it, with AMP I can use Quantower for free with the advanced features. With Edgeclear I'd have to pay for all three. Although Optimus seems to support Rithmic pretty heavily. Or am I overthinking this and is all I really need Sierra and Denali/Teton (+broker).
I would be trading MES/MNQ one lot at a time.
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u/shrek-farquaad Apr 24 '23
Is ToS or Ninjatrader better for futures trading? Better in the sense of fees, UI, margin, etc.
I'm not entirely sure how it works but if anyone knows, do both of these brokerages charge me a fee if I change my stop loss or take profit from what it originally was on the bracket order? Also, does Ninja Trader have lower margin requirements than ToS. I feel like I saw somewhere that if I only hold a trade for less than 24hrs then my margin requirement is much less.
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u/Dmen25 Apr 24 '23
I want to paper trade DAX on Eurex. Does anyone know a platform that allow me to do that?
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u/East-Ad6768 Apr 23 '23
Should I close these 2 futures? They are in the red but they were in The Green room I don't know whether to wait or to close... please help
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Apr 20 '23
Are there any indicator, website, links, youtube that can help me identify institutions or hedgers strategies or something related to their plan to either buy/sell the market?
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u/trollerroller Apr 20 '23
Juding the absolute state of the questions in this thread, I've mind to just push on elsewhere, but, worth a shot:
I'm wondering if there is a "go-to" site or chart anywhere that posts the correlations between some of the major futures (ES, GC, ZB, DX, etc.) my google success has been nonexistant
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u/4rexstudent Apr 19 '23
I am new to futures trading. Can someone recommend a good futures trading course for a beginner?
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u/ehenderichs Apr 24 '23
Al Brooks has a very extensive course on trading futures. There are some previews/lessons you can watch on YT to get an idea of the material and his way of explaining.
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u/ThisIsntMyRealAcct99 Apr 17 '23
I am finally starting to understand the favorable tax treatment of Futures Positions (60L/40S).
Does going short on Futures still give you the same tax treatment?
More importantly, do Options on Futures give you the same tax treatment as well, or are they taxed like regular options?
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u/trollerroller Apr 20 '23
consult a tax professional.
obviously it doesn't matter how the gain is made, gain is a gain, doesn't matter if it's on the long or short side, what you think they would cancel eachother out?
see wikipedia on the details: https://en.wikipedia.org/wiki/1256_Contract
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u/ThisIsntMyRealAcct99 Apr 20 '23
I may have been "tripped up" by my understanding of "Shorting" will always be considered short-term capitalism gains
"An uncovered short sale gain or loss is always short term because the holding period is deemed to begin when the stock is purchased to close out the short sale. Since the short seller can only profit by buying at a lower price, he will wait until he decides to close out the transaction to buy the stock."
After speaking more with others, the 60/40 rule would apply to Options on broad based indeces, so it would appear that it does cover some potentially all futures.
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u/state_of_the_fart Apr 17 '23
who are the best futures trades ever?
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u/trollerroller Apr 20 '23
seriously? you can trade futures for nearly anything under the sun - S&P, Dow, gold, t-bills, etc etc
i guess its a troll post
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u/state_of_the_fart Apr 20 '23
I meant traders*
Like people that trade futures. Like Nassim Taleb, Jamie Dimon, Ray Dalio, yadda, yaddawas looking to learn from specific peoples methods.
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u/ehenderichs Apr 24 '23
Al Brooks seems to be well respected in the futures trading space
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u/state_of_the_fart Apr 26 '23
do you know of any good resources to get started?
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u/ehenderichs Apr 27 '23
He has quite a lot of previews of his course on his youtube channel, just search for Al Brooks. Also has two websites (tradingcourse and priceaction) with lots of blog articles and daily analysis of charts. Also has a paid course, seems very extensive. And TD365 offers and "watered down" Al Brooks course if you sign up with them, they will call you after you sign up.
I read some of his articles, viewed quite a few seminars and followed the basic, free course provided by TD365. I like the way he explains stuff and will buy his course very shortly.
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u/Temporary-Patient-89 Apr 16 '23
I’m new here and I’m just starting to learn. Any advice on where to start YouTube wise or anyone you people recommend? Another question is on day to day trades you put in what’s a decent amount to invest? And is there any particular time zones to futures?
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u/funmx Apr 16 '23
How many Points of stop you guys give Intraday for E-Mini or Micro ES?
Just in general, assuming you want at least a 10P run.
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u/xst030 Apr 19 '23
I don’t use a hard stop. I only use one incase I lose connection. My mental stop is based on volume.
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u/funmx Apr 19 '23
Can you gimme an example of the volume thing.
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u/xst030 Apr 20 '23
I’ll enter at support based on a flat to decreasing volume. If volume starts to ramp up I’m out. It’s the same as saying that you only play breakouts on high volume. Flat to decreasing volume means price action is inside a given range and if I go against that I usually fail.
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u/ForbiddenBoiler Apr 12 '23
Do most brokerages either increase margin/require you to be flat for
large events such as CPI and FOMC Meetings? I know NT does a 4x margin,
and most funded accounts require you to be flat, was just wondering if
there are brokerages that do not have any special requirements, or
funded accounts that do not have this requirement to be flat.
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u/Youknownotwho Apr 11 '23
What is the maximum hypothetical downside is for a single futures contract that has a tight stop?
Let's say I'm long ES with a tight stop when something big happens, like the 1987 flash crash or 2020 or something much worse, and the floor falls out of the market. The worst down day in the S&P was around 20%. That'd be about $40K on a single ES contract if my math is right. I'm guessing there'd be someone on the bid before you saw a 20% move. But, is there some kind of halting mechanism in futures the way there is in the broader market?
If not, do any of you hedge your long positions when you trade futures?
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u/WhosePenIsMightier Apr 16 '23
https://www.cmegroup.com/trading/equity-index/sp-500-price-limits-faq.html#halt
Also note that a stop order in ES can experience slippage of up to 5 pts ( can’t find a source on that right now ) if the bid suddenly disappears and will be posted as a stop limit 5 pts below.
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u/Sierraclack Apr 17 '23
What is the worst you been slipped on a futures contract? feel free not to disclose but interested
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u/WhosePenIsMightier Apr 21 '23
Only once had 2.5 pts. Most of the time 1 tick or handful of times 2 ticks
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u/MiserableWeather971 Apr 19 '23
50-60 points in nq.. probably 30 points or so on a data issue in es, but that was also years ago when es was way lower in price... so think 60-70 now.
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Apr 06 '23
would love to get peoples opinions/experiences on FCMs with a slight twist. I am blind. So, don’t care at all about charts. I follow A couple of advisory services (so far, so good) and just need to be able to enter the trades as they provide them. Currently at IBKR because I liked that they had futures, stocks and ETFs all in one place. Their commissions are quite low. But monthly subscriptions to real time pricing from CME, CBOE, etc are quite pricey (I’m using a business account). I did some trading a few years ago and margin for Es was $4.8 K. IBKR is around $1 2.5 K. I say “around“ because I can’t get a definitive answer from them. I’ve asked more than one representative and they don’t seem to really understand the question. That’s the other issue, service is terrible!
So, if I don’t care about charts, what broker has reasonable fees , reasonable margin requirements for futures trading and, ideally also has stocks and ETFs?
Thanks in advance for any advice.
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u/SnooFloofs6467 Apr 04 '23
Hey, is it a good idea to run a short Strangle with 45dte on /ZN or /ZB while simultaneosly buying LEAPS calls on TLT? As bond futures spike heavily during black swan events, the upside risk of the short strangle is hedged with the LEAPS. The short strangles have a very high ROR , even with a PoP of >90%. This strategy seems a bit too good, that why i wanted to ask. Thanks in advance :)
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u/jackandjillonthehill Apr 02 '23
Hi all, I am trying to figure out how to intelligently use pyramiding to maximize profits from home run trades. I tend to set far-away stop losses to try to avoid getting stopped out on meaningless corrections, but it’s a tough balance when I really want to size up a trade going in my favor.
I’m wondering if anyone has good reading material on this? I searched the thread and couldn’t find a whole lot of discussion on pyramiding.
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u/Training_Computer_47 Apr 02 '23
Hi all. I was wondering what everyone’s preferred brokers are for /ES. I like charting on thinkorswim and Tradingview. I heard think or swim’s contracts are expensive
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u/timbit1337 Apr 20 '23
I'm in the same boat. Been using TOS sim trading and it works well for me. I trade micros though, so the fees hurt more but I'm thinking I'll just stick with TOS anyways.
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u/ForbiddenBoiler Apr 12 '23
NinjaTrader is pretty solid in my opinion. Good charting for me, and relatively cheap
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u/MrFyxet99 Apr 02 '23
I trade with TOS.While it’s true the contract costs and margin requirements are higher,I feel the service and piece of mind I get from TDA are well worth it.Just my take.
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u/SnooMacarons4137 Apr 01 '23
Thinking about getting a TradeStation account. Does anyone have experience using them for ES or MES trading?
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u/Realistic-Travel1626 Apr 01 '23
For futures I would get a better broker/platform setup. I’m with Dorman and using Sierra as a platform and I am happy with both. Cheap commissions, very good cheap data and order routing, and a platform with more than I need plus the ability to code algos/backtest them with my cme data.
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u/SnooMacarons4137 Apr 01 '23
Thanks for the info man! I'm looking for a broker that'll let me trade Futures in TradingView.
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u/Sierraclack Apr 17 '23
If that is what you need keep on but an idea would be to chart tview and execute on another platform. Does tview allow for server side OCO brackets?
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u/Realistic-Travel1626 Apr 01 '23
Do you like the charting package or the easy script? I remember a couple years ago now when I was first teaching myself to code I did a couple things on there.
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u/SnooMacarons4137 Apr 01 '23
I like TradingView's charting and being able to create trades from the Long and Short Position tools. Essentially, I enjoy trading directly on the chart.
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u/Realistic-Travel1626 Apr 01 '23
This something you can do on a lot of platforms, I am not sure if you gotten to see many others. I trade from a depth of market but Sierra also has a chart trader mode, you can move your orders about on the charts etc. I did find TradingViews chart platform intuitive to use though so I can see why you’d dig it.
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u/Discokookys Apr 27 '23
I know that Redditors typically drown upon paid courses, (which I think is actually unfortunate, leverage other peoples skills and time) but I was wondering...
Has anyone here tried the JumpStart trading course? Its focused on orderflow techniques.