How to efficiently and consistently scalp Russell 2000 E-Mini futures

After the first review of the futures contract Russell 2000 E-mini scares the inexperienced trader. If you decide to trade an ES contract, which is by far the most actively traded e-mini offer, then Russell 2000 (the so-called TF) has an extraordinary price movement; this is why you should consider TF as one of the contracts you add to your trading repertoire. This dynamic contract provides experienced traders and well-trained novice traders with a daily setup after setup. However, many traders inexplicably focus on high-frequency ES trading (S&P 500 e-mini) as their contract. Although I don’t trade exclusively TF, it’s an important part of my daily trading day and is always displayed on one of my monitors. On the other hand, I avoid all trading movements on HFT consolidation and arbitrage trading on ES like plague.

Russell 2000 (TF) is based on small-cap stocks, and some see it as a major indicator of stock market movements in general. That said, I could care less. As a TF scalper, I am interested in smaller moves that represent a contract, and in being able to trade those moves effectively. Which isn’t to say I don’t like trading bigger moves on the Russell e-mini, there are just 20 steps enough to satisfy even the most discerning trader. Contract traffic is something that “repulses” many traders, but it is this movement that can make the TF e-mini such a money machine if traded correctly. Don’t let the market noise in this tool scare you away; it can be effectively traded with the right tools.

Most TF trades can be classified into two broad categories; trade in parentheses and trend price movements. Either way, TF will present ample opportunities to start winning trades.

What is the secret of trading Russell 2000 e-mini?

I pay close attention to the flow of bar orders in relation to the overall market structure defined by the market profile. Order flow – order flow; this means that once this contract starts to move into potentially lucrative TPOs defined in the daily market structure, you can just watch the warrants accumulate, short or long, and hang in the trade until you see a specific area where traders are moving the market. your direction will lose interest. I should note that lagging indicators are not particularly effective on TF due to the speed of price movements. However, using real-time order flow data, you can observe how orders accumulate on one side of the contract, and with relative confidence trade in that direction. As an added help I usually keep a summary table to read the tapes to watch how they accumulate at each price index.

I also pay close attention to volume readings at known points of support and resistance to give me an idea of ​​whether a breakthrough or failure is imminent. You can observe the same thing in the order flow and notice whether the delta increases or decreases with known support and resistance. Any quality order flow indicator will reduce these deltas in real time for observation. You may note that real-time indicators are the name of the game for the high percentage of trades under this contract.

I would also recommend keeping an eye on the true true range (ATR) indicator to determine if price movements are in your identified risk profile. For my purposes I use 2x ATR to determine the target profit and stop / loss point; if 2x ATR exceeds 25 ticks, I just wait until the price action is set and resume trading. In my opinion, I am willing to risk only 25 ticks ($ 250) on any transaction under this contract. You also need to keep in mind the size of your trading account when trading TF; never risk more than 1-3% of the value of your trading account. If my $ 250 stop loss is more than 3% of the size of your account, you would be wise to trade Russell 2000 if the ATR is lower and more suitable for your risk tolerance and trading account. Money management is important for the TF e-mini, as in commerce in general.

Summing up, I would like to urge you to take a closer look at the Russell 2000 e-mini and implement the real-time trading indicators that I have identified. I also stated that if you are lagging behind the indicator trader, this contract will give you approaches; This is how I feel about all e-commerce. Look at TF and trade them in real time with one contract that you really need in this dynamic contract. As always, good luck in the trade.