Russell Futures and RUT/IWM Setup

ccurtin

ccurtin

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I trade the Russell Futures either daily (ambivalent about being short/long) or hold for 1-3 days (as the wild swings in both directions seem to eventually go your way and I NEVER use margin). Since the RUT is the dog that is wagging the RYT future's and the IWM ETF's tail, I have my futures chart (using AMM & B3ADX in the top and QQE/Vortex Indicator in the bottom) but I am searching for the best setup to watch RUT during normal trading hours and the IWM after hours. Those of you trading index futures, how do you monitor the main index they are derived from?

SymbolLastNet Chg% ChgVolumeImpl Vol1 Yr SD1 Day SDΔSizzle IndexP/C RatioPut Sizl IndexOpen IntBeta
IWM125.1-5.2-3.97%4335203647.66%59.63.73.0%0.872.021.0N/A1.22
RUT1260.5-50.2-3.83%47.30%596.237.33.0%0.891.590.9N/A1.2
/RTYM201253.0-53.7-4.11%18409745.76%573.435.92.9%3.122.253.2520000N/A
 
C

CapSix

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Thanks a lot for sharing your setup. I’ve been trading the RTY for the past couple months and am preferring it to ES for mainly the reasons you said. Looking forward to checking out your setup.
 
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tradebyday

Active member
If I am trading the futures I do not bother looking at the index or ETF. Mainly because I am probably trading London session where futures are very active and there is near no volume in the other two. Regardless I think staring at the same chart listed in 3 different formats is overkill for my style as well. If I have another chart open it is probably NQ, GC, CL, or DXY as a way to see possible confluences with what assumptions I have of the current market structure. The minute differences between the future, index and ETF tickers are so small, you're not doing yourself any favors by trying to decipher one to understand the other. Since futures are open 23/6, best to find a chart for RTY alone, will be less susceptible to gaps in pricing that can create issues in your indicators
 
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codydog

Active member
@ccurtin - I'd look at which russell has the greatest money flow and then watch correlations between the futs and the index as well as the correlation between various russell surrogates and spy or es

imo, you see lots of commentary about "relationships" between say, gc and 6e, but on an intraday basis they're not really tradable. Again, imo, the introduction of passive commodity funds, like GLD, have a simple algo, give them money, they buy, take your money they sell. The passive funds have broken many of the relationships that may have existed in the past.

If I may be forward and as someone who has done for this for a long time, if you're going to intentionally trade or hold something which can be wildly volatile, I'd try and stay away from the "but it always reverts" ideas some talk about and use stops. I've seen very experienced folks lose tremendous amounts of money saying "but it always reverts". On specific case is a guy who I watched lose his seat at the NYSE and his home during the 1987 crash.
 
ccurtin

ccurtin

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Thank you, @codydog. Good point on "but it always reverts". It doesn't always do anything.
 
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