an interesting observation from the system trades: It appears
that you need to trade roughly #20,000 worth of SPY to get the
equivalent G/L to trading 1 MES futures contract. This is why when
the SPY and ES systems do the exact same trade, the MES profit/loss
is almost exactly 2X the amount of the SPY using $10,000
So $20,000 SPY is needed to capture the same profit/loss as
trading 1 MES contract. Or $10,000 SSO would roughly equal 1
MES contract, or $6700 of UPRO would equal 1 MES contract
observation on systems trading MES and SPY
Posted by matt on 25th of Aug 2022 at 11:35 pm
an interesting observation from the system trades: It appears that you need to trade roughly #20,000 worth of SPY to get the equivalent G/L to trading 1 MES futures contract. This is why when the SPY and ES systems do the exact same trade, the MES profit/loss is almost exactly 2X the amount of the SPY using $10,000
So $20,000 SPY is needed to capture the same profit/loss as trading 1 MES contract. Or $10,000 SSO would roughly equal 1 MES contract, or $6700 of UPRO would equal 1 MES contract
I love trading the ES
Posted by craigm on 26th of Aug 2022 at 09:04 am
I love trading the ES system (using MES). The Buying Power Effect for 1 MES contract is approx $1,800 instead of having to tie up $20K for SPY.
So less capital AND better
Posted by fredsaid on 26th of Aug 2022 at 12:29 am
So less capital AND better tax proftabily as you shared earlier this week in futures.
Theres always a but ... more volitility and higher margin requirements.
Excellent insights ! Tomotrow gonna be FUN.