TIMESTAMPS
00:01 – INTRO
00:39 – UTILITY
Following from the last lesson where we covered:
Atas installation.
Connecting to a broker with CQG & Rithmic.
Adding templates & snapshots, Level 2 & Tape.
And saving a completed Workspace.
This lesson will cover the following:
ES contract position sizing.
Tick calculation & trading fees.
Creating an exit strategy with TP and SL.
One single contract on the “ES1!” is 50 times the index price.
For example, if the ES is trading at 4500, the nominal value for one contact is 50 x 4500 = $225,000.
If you open 10 ES contacts, this will have a nominal value of $2,250,000.
When trading ES, you must be aware there are 4 different contact names, one for each quarter.
🔎 03:37 The 4 different contracts are shown for ES futures.
Here is the link for the CME, where you can get all the data such as the current month contract, volume, open interest, etc.
> https://www.cmegroup.com/markets/equities/sp/e-mini-sandp500.html
ES is measured in “ticks” and each tick represents $12.50.
There are 4 ticks in a full handle, 1 handle is a $1 increment.
See the example on screen of a full handle move:
4 ticks x $12.50 = $50
🔎 06:37 Show here is a screenshot of an AMP statement showing the fees for 1 contract on ES. It works out to $2.20 each way = $4.40 for 1 contact buy/sell.
The only other fee required is the data feed, shown on stream, which is $35 once per month.
08:17 – IMPLEMENTATION
In ATAS, creating an Exit Strategy is a must.
There are a few options, but we will focus on only the Multiple SL&TP and the SL&TP.
🔎 08:59 SL&TP Exit Strategy is explained step-by-step.
🔎 11:32 Multiple SL&TP Exit Strategy is explained step-by-step.
Make sure when you finish creating each Exit Strategy, you click on the star to save it.
Now that you understand the ES contract size, tick value, and how to implement an exit strategy, the next thing to do is enter and manage a trade for this:
Select your account, set the position size, start the Exit Strategy by clicking on the play button, wait for the trade to come to you. When it does, all you have to do is press the market buy/sell and the rest is all automated including the reduced size SL when your TP is hit and the multiple strategy is selected.
17:47 – TIPS & TRICKS
★ In Atas, save multiple exit strategies for different pairs and sessions. For example, one strategy using less ticks if scalping during the AM session, or more ticks if taking longer trades, especially during the NY session where there is more volatility.
★ Keep your position sizes consistent, this will help you a lot, as each day you trade, you are repeating this over and over again, therefore you know exactly the average win and loss per trade.
★ You want to achieve consistency; therefore, the use of an Exit Strategy is a must. This way you are always protected from the get-go.
★ Always ensure to have the correct account, correct number of contracts and strategy selected BEFORE entering a position.
22:40 – FINAL THOUGHTS