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Learning Emini Futures & Futures Indicators
A Trading Course in Emini Futures and Emini Futures Indicators…
Let me be concise about the Emini futures groups so your time will not be wasted. People belong into either one of two blocs: the faction that declares that Emini futures indicators don't work and the faction that pronounces that you can deal utilizing only indicators without viewing the price bars. Basically, declaring that no Emini Trading System is needed.
The second group is more lunatic than the first one. However, they have one thing in common: they basically are made up of of bozos who have never indulged in trading, thus have inadequate concept what works and what does not. In particular, they don't know that indicators do work, except that there are instances when they don't function. You evidently do not understand trading if you don't comprehend something like this, which is rather basic to those who have studied these ideas.
Sadly, at present, the World Wide Web is teeming with businessmen pretending to be trading authorities adding to the puzzlement of those who are only beginning to trade Eminis Futures. Sometimes these pseudo-experts will also use the no indicators formula to make their system look special or particularly effortless to utilize. Similar to "look ma, no indicators." I just ran into one of those guys who has taken it to an absolutely new level: a very cursory assessment of his site affirms that he is utilizing indicators even if he is refuting it. The system uses not just one, but two indicators, rather recognized ones, at least for more sophisticated Emini Futures traders.
Let me make sure that you understand what I mean by the indicator. The meaning is quite simple. It is a standard definition.
Mathematically speaking, the indicator is some function of price. Moving means and different kinds of oscillators (stochastics, for instance) are proper instances of that. What the functions do is to transform the price into something else. That other thing every so often is not even assessed in similar units as rate, meaning it does not use a similar scale as the price graph. Various oscillators are an appropriate case of this kind of instance, while moving averages are not. If the price is not subjected to any transformation, then it is obviously not an indicator.
It is possible to have Emini Futures trade systems that do not rely on indicators. This author designed a scheme like that for trading the S&P Emini Futures five years ago. The system did well back then, and continues to work well even these days. I use my own example to demonstrate that truly indicator free Emini Futures trading systems can work. But that does not mean yet that systems using indicators don't.
It is the nature of indicators that lead people to wrongly believe that indicators do not work. As the offshoots of price, indicators lag behind it. Because of this, the trader following signs from indicators is bound to be late compared to the trader who utilizes only the amount to bring about his trading choice. In situations when unpredictability is relatively high, this will not matter, but when instability is low, the trader depending on indicators will be struggling with ranges too small to permit him to have profits. It is thus not indicators, but volatility that prevents the traders from making money. Using indicators will not be a huge complication if trading is restricted to situations when volatility is decent.
To those new to the world of Emini Futures, who may even not know what I am talking about, let me briefly mention what Eminis are for they are still relatively novel trading instruments.
Emini Futures are smaller-sized contracts of older futures contracts that have been around for so long. The "mini" part in their name connotes their diminutive size, which is much smaller than the older futures contracts. Emini Futures have always been traded electronically while the older futures contracts were traded on physical exchanges, allowing small, retail traders with access to the World Wide Web to vie against institutional traders. From their offices at home or anywhere in the world, trading can be successfully done. That's what the "e" in their name stands for, namely "electronic."
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