I'm still trying to figure out how I'm going to communicate
these ES system trades. For example today the Trend/Pullback took a
2nd entry, Futures trade on holiday's. However most people are out
who pay attention to the cash. And that breaks up the idea of
entries with options and ETF's - clearly none of those would have
been available to take the trade today
Secondly, most of you are probably aware of the micro ES
contract, which is 1/10 of the ES contract - each point is $5
instead of $50. Anyway, I was doing some calculation with the
system trades and it appears that 1 micro ES contract gives roughly
the same dollar amount %G/L as $20,000 worth of SPY ETF. Or roughly
$10,000 of SSO.
anyway given the huge tax benefits of the futures, that might be
an option for folks to consider. A lot of folks do not like
holding ES futures but holding a micro contract allows those with
smaller accounts the option
as I commented on yesterday, the open ES sub system took a 2nd
entry yesterday at the close. Since the cash market was not open it
was not possible to enter an ETF like SSO or SPY options. This can
and will occur in the future as ES trades on most of the holidays
where the cash market is closed and trades can and do occur on
those cash market holidays.
Anyway, I think for simplicity sake instead of doing options and
ETF's I'm going to post the trades using the MES futures contract,
which is the ES micro contract, it controls 1/10 of the ES. For 1st
entries I'll show 1 contract, for 2nd and 3rd entries 2 and 3
contracts respectively.
What I noticed when comparing the dollar G/L of previous trades
on SPY relative to ES is that 1 MES contract appears to produce
roughly the same dollar G/L as $10,000 SSO, or $20,000 SPY. that's
quite interesting but good to know.
futures have superior tax benefits over ETF's with the 60/40 tax
rule. The draw back is the leverage but also with the micro ES
since it controls 1/10 it may be an option for some folks. Again
that's up to you, I'll just report the system trades
This space has always been so foreign to me and I wouldn't know
how to start. Is there a good educational piece on trading the ES
micro contract? And why tax free?
regarding tax on futures they have the benefit of the 60:40 rule
where 60% of the gains on futures trades, even if they are only
seconds long are taxed at the long term capital gains tax, and the
other 40% are taxed at short term capital gains tax. For stocks and
ETF's you have to hold them for 1 year to claim long term capital
gains tax.
why is it that way? IDK some loophole probably for the elite and
congressman to take advantage of something the normal public
doesn't know about
DON'T tell Bernie and AOC! otherwise they will probably start
talking how it needs to be closed LOL
ES systems and comments
Posted by matt on 21st of Feb 2022 at 07:54 pm
I'm still trying to figure out how I'm going to communicate these ES system trades. For example today the Trend/Pullback took a 2nd entry, Futures trade on holiday's. However most people are out who pay attention to the cash. And that breaks up the idea of entries with options and ETF's - clearly none of those would have been available to take the trade today
Secondly, most of you are probably aware of the micro ES contract, which is 1/10 of the ES contract - each point is $5 instead of $50. Anyway, I was doing some calculation with the system trades and it appears that 1 micro ES contract gives roughly the same dollar amount %G/L as $20,000 worth of SPY ETF. Or roughly $10,000 of SSO.
anyway given the huge tax benefits of the futures, that might be an option for folks to consider. A lot of folks do not like holding ES futures but holding a micro contract allows those with smaller accounts the option
as I commented on yesterday,
Posted by matt on 22nd of Feb 2022 at 09:50 am
as I commented on yesterday, the open ES sub system took a 2nd entry yesterday at the close. Since the cash market was not open it was not possible to enter an ETF like SSO or SPY options. This can and will occur in the future as ES trades on most of the holidays where the cash market is closed and trades can and do occur on those cash market holidays.
Anyway, I think for simplicity sake instead of doing options and ETF's I'm going to post the trades using the MES futures contract, which is the ES micro contract, it controls 1/10 of the ES. For 1st entries I'll show 1 contract, for 2nd and 3rd entries 2 and 3 contracts respectively.
What I noticed when comparing the dollar G/L of previous trades on SPY relative to ES is that 1 MES contract appears to produce roughly the same dollar G/L as $10,000 SSO, or $20,000 SPY. that's quite interesting but good to know.
futures have superior tax benefits over ETF's with the 60/40 tax rule. The draw back is the leverage but also with the micro ES since it controls 1/10 it may be an option for some folks. Again that's up to you, I'll just report the system trades
This space has always been
Posted by cozz101 on 22nd of Feb 2022 at 09:52 am
This space has always been so foreign to me and I wouldn't know how to start. Is there a good educational piece on trading the ES micro contract? And why tax free?
regarding tax on futures they
Posted by matt on 22nd of Feb 2022 at 09:58 am
regarding tax on futures they have the benefit of the 60:40 rule where 60% of the gains on futures trades, even if they are only seconds long are taxed at the long term capital gains tax, and the other 40% are taxed at short term capital gains tax. For stocks and ETF's you have to hold them for 1 year to claim long term capital gains tax.
why is it that way? IDK some loophole probably for the elite and congressman to take advantage of something the normal public doesn't know about
DON'T tell Bernie and AOC! otherwise they will probably start talking how it needs to be closed LOL
Oh thanks for the info
Posted by cozz101 on 22nd of Feb 2022 at 10:16 am
Oh thanks for the info on the tax benefits. Your right, probably just a loophole yet to be discovered. Need all the help we can get! Mums the word...