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Does MES have any advantage over ES ??


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Does MES have any advantage over ES ??

  #1 (permalink)
Mrhamster
San Francisco , CA
 
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Does MES have any advantage over ES ??

MES commissions and fees are higher than ES per contract .

I don't see any reason to trade MES ,

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 Pariah Carey 
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If you have a tiny account you'd be very well advised to trade mes. The higher fees are just a cost of admission when you're a small retail trader.

In March 2020 I traded mes on a not so tiny account because the daily moves in the equities were gigantic. I typically risk 20 points per contract in es, back then 20 points was just a speed bump to the market. I went to multiple mes contracts at 50 points per, same risk, but could stay in a trade much longer.

MES is a necessity if you're a small retail trader. Risk management is the number 1 priority.

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  #3 (permalink)
Mrhamster
San Francisco , CA
 
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Pariah Carey View Post
If you have a tiny account you'd be very well advised to trade mes. The higher fees are just a cost of admission when you're a small retail trader.

In March 2020 I traded mes on a not so tiny account because the daily moves in the equities were gigantic. I typically risk 20 points per contract in es, back then 20 points was just a speed bump to the market. I went to multiple mes contracts at 50 points per, same risk, but could stay in a trade much longer.

MES is a necessity if you're a small retail trader. Risk management is the number 1 priority.

Why could you stay in a trade much longer ? Did you find MES moved slightly different than ES ?

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 Pariah Carey 
Memphis TN
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Cause I was risking 50 points per contract per trade in mes rather than 20 points per contract per trade in es. Two and a half times more risk. MES is 1/10 the size of ES so I just figured out how many more mes contracts I could take on but still keep the actual dollar amount of risk the same. It's just position sizing math.

There was a day in March 2020 (or maybe April) where I was trading es with a 20 point risk and I got stopped out in like 90 seconds. It was absurd. ES was practically untradeable back then because of the volatility and lack of liquidity. After that I said fuck that noise and went to mes for a few weeks until things calmed down.

Money make ya handsome
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  #5 (permalink)
Mrhamster
San Francisco , CA
 
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Watching ES and MES side by side , MES looks to move slightly smoother than ES .

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Last Updated on September 15, 2022


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