Bill, I'm not sure you'd want to play the ER2 with MAX as you might an equity. Margin for one ER2 contract is $1688 for a day trade. At exactly 1545 ET, all positions still open immediately get a margin double and that stays overnight. Now, you're in margin hell and total risk with the uncertainty of what the open might surprise you with. This morning, for instance, the ER2 gapped down about 3 points. At 5 contracts (what I've been trading) that's a $1500 hole you start the day with. Not for me.
I'm still experimenting with this, so there's not much point in attempting to tell you what works, or doesn't. So far, with a mixed approach this month, I'm up about $3k in the account in ER2 trades only. I've done 19 RTs with 5 losers. I am finding it imperative to take small gains and trade more often than I am accustomed to. With 5 contracts a point is worth $500. A decent day's pay. Often it's necessary to make that day's pay with 3-4 trades netting only 30 to 50 cents. A 30 cent gain is worth just $150, a 50 cent gain, $250 and so on. That's essentially how I've been doing this, but I'm okay with these singles and doubles. Going for the home run cost me $1400 in one trade, $1600 in another. Definitely not worth the belly ache. Don't forget to factor in the $24 RT commission for a 5 contract trade.
This morning I did 8 contracts for $360 and 5 contracts for $276, so I've made my day's pay, with a lot of trading day left. I'm taking a friend to his doctor this afternoon, so I may be through for the day. That's okay, too. |
