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Jerry,
You'll have an interesting challenge with only $3000 but if
you're going to do it you need to look for markets that have
both low volatility and high liquidity. You need high
liquidity or slippage will eat up your capital --- so skip
oats and rough rice for a start. I suspect that you should
also skip most of the "mini markets" for liquidity reasons.
For low volatility try C, ED, SB and maybe CC. Below is a
table giving symbol, average daily true range, 10 day range
(from memory) for a range of contracts worth considering.
ES 1.2 4.1 US .85 2.4 TY .6 1.7 ED .2 .7 S .42 1.4 SM .32 1
CU 1.1 3.4 CD .3 1.1 BP .65 2.3 RR .25 1 C .2 .7 GC .3 1.1
HG .29 1 KC .64 2.1 O .21 .78 SF 0.7 2.4
CC .32 1.1 CT .53 2 SB .23 .84 LC .34 1.2
BO .2 .7 W .28 .9 CL 1 2.5 HO 1 2.3 HU 1.1 3.3 JY .6 3
For liquidity you need to stay in the high volume contracts.
Heres a list I derived from my CSI data a while back. Stay
towards the to end!
ED2 115748
US 127881
TY 113148
NQ 87875
ES 82565
FV 53036
TY 270421
US2 69759
FV2 38170
SP2 34406
SP 33294
C 2 28224
C 28083
ND 13040
ND2 12628
SB 15534
S2 11763
S 11631
CL 11804
DJ 6960
JY 12432
CD 8526
DJ2 6446
TU2 3315
TU 3315
JY2 11051
BP 8924
CU 6885
CD2 6345
BP2 7442
CU2 5577
DN 2442
NG 3365
W2 5566
W 5543
SF 3001
GC 2593
SF2 2632
LC 1921
KC 4465
CC 3338
KW 3634
RS 2851
HU 1539
SM2 2612
SM 2611
HG 2694
CT 3384
RL 1101
BO2 2156
BO 2156
And dont overtrade (if thats possible).
John
----- Original Message -----
From: "Jerry Lamberth" <jerryqcsl@xxxxxxxxxxx>
To: <omega-list@xxxxxxxxxx>
Sent: Saturday, August 24, 2002 1:47 AM
Subject: Grub Stake Markets
Having spent a year 'fiddling about', trying to learn about
the futures
markets from nothing and doing some testing work with
Tradestation, I'd like
to focus my work better right now.
Recognising that most people lose their risk capital in the
futures market,
I want to start with a very small stake (maybe $3,000). Yes,
I know it gives
me almost no chance to survive, but I figure better to make
my early
mistakes trading very small.
My question is, which market(s) should I focus on with such
a small stake. I
think I will need to set very low hard dollar stops (say, no
more than
$500), so I can't trade markets that are likely to stop me
out on the day of
trade simply because the tick value is too great. Similarly,
margins will
need to be low.
Should I focus on the Midam markets (can't find continuous
contract data for
these though) or lower value CBOT etc markets (Oats maybe?).
Your thoughts and recommendations would be greatly
appreciated.
Thanks
Jerry
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