Futures Trading can be Frustrating
Sometimes trading can be very frustrating.
I entered orders to buy 1 December 10year T-Note at 110.000 usually I don’t trade whole numbers because many commodities can bounce off these numbers when someone puts in a lot of orders.
Recently I haven’t seen any indications of T-Notes doing this, plus they trade in 1/64 increments or something like that. In addition to that I have to enter orders with my futures broker in decimals which go from .005 to about .350 or something like that I don’t really understand it and I haven’t taken the time to figure it out, I just enter whole numbers and don’t worry about it.
It hasn’t been a problem, and lately when it gets close to a number it always goes through that number anyway.
Corn is a little different it can easily bounce off a number like 50.00 or even 49.00 so I figured I would be smart and enter my orders for 49.50
Well for the last two days December Corn has stayed one tick above 49.50 and T-Notes came down to 110.005 and is now going back up.
If either of these go up to the next level of my scale then I will have lost $1000 on the T-Notes and $350 on corn.
Oh well I guess you have to take the good with the bad. The market did gap down below 2 of my corn orders last week, so I ended up getting in both contracts right at the low.
That is one of the best things about scale trading, no bad fills. There are actually 3 options:
Anyway it works you really don’t have to worry about it much, plus your money is really not made on your fills with scale trading. The way you get filled is such a small part of it that it’s almost meaning less.
I entered orders to buy 1 December 10year T-Note at 110.000 usually I don’t trade whole numbers because many commodities can bounce off these numbers when someone puts in a lot of orders.
Recently I haven’t seen any indications of T-Notes doing this, plus they trade in 1/64 increments or something like that. In addition to that I have to enter orders with my futures broker in decimals which go from .005 to about .350 or something like that I don’t really understand it and I haven’t taken the time to figure it out, I just enter whole numbers and don’t worry about it.
It hasn’t been a problem, and lately when it gets close to a number it always goes through that number anyway.
Corn is a little different it can easily bounce off a number like 50.00 or even 49.00 so I figured I would be smart and enter my orders for 49.50
Well for the last two days December Corn has stayed one tick above 49.50 and T-Notes came down to 110.005 and is now going back up.
If either of these go up to the next level of my scale then I will have lost $1000 on the T-Notes and $350 on corn.
Oh well I guess you have to take the good with the bad. The market did gap down below 2 of my corn orders last week, so I ended up getting in both contracts right at the low.
That is one of the best things about scale trading, no bad fills. There are actually 3 options:
- you get filled at your price
- you don’t get filled and wait until next time
- the market gaps past your price and you get a better fill
Anyway it works you really don’t have to worry about it much, plus your money is really not made on your fills with scale trading. The way you get filled is such a small part of it that it’s almost meaning less.
