Trading has changed a great deal since I first stepped on the trading floor in the 1980s and one of the most significant changes has been the development of the overnight trading. As I’m sure you know, most contracts are open for nearly 24 hours e-mini trading. The market closes briefly just after the cash session for half an hour and then the next day begins trading. It is obvious that this leads to an enormous number of opportunities to catch a decent trades after hours.
So what contract you have to trade? The simple answer is; a market that decent volume and price has movement. Ah, that’s much easier said than done; many of the lesser indices are very quiet during the evening hours so you will have to be free creative in choosing which mission you plan for your e-mini trading. That said, contracts like the TF and YM generally overnight miss a real movement. Of course, there will be times when even these lower volume contracts are active, especially if there can be traded some important news or announcements of these two markets, but in general, you’ll probably have little success with the YM and TF. These contracts are simply too thin in order to market the largest part of the time.
There are however a number of contracts that can be easily traded in the evening session, especially during the Japanese trading hours and European trading hours. If it was me, I would focus on contracts that a significant impact on the European economy
are some of my favorite contracts for trading;
6E :. This is the futures version of the Euro and it moves generally inversely proportional to what the DX contract was doing. There were several years that this contract was so hot that I started trading at 04:00 ET and had tremendous success. Since the EU is very active in the manipulation of this contract with incentive programs of this contract is a bit slow, but recently seems to have broken out of the turbulent market syndrome that has dominated most of the trading on the 6E.
CL: Let’s face it, people seem to want to trade crude oil and the price action can be very active. In general, the evening session will be very good on this contract if it will work sideways in a channel
6A :. This is the Aussie dollar and can often follow crude oil prices. Would two contracts to see whether correlate or monitor different markets. There is important news in Australia that can override usual correlate character of this contract with crude oil prices
ES :. I’m not a big fan of the ES, because it can be inconvenient and grinding away in a narrow channel. There are many nights when good trades can be found. You do not have to worry about the hanky-panky that characterize the ES during the cash session
6J. The Japanese currency may also be active during the Japanese session money. Be careful with this contract because the Bank of Japan remained stable highly active in keeping the Japanese currency price. I will be the measures taken by the Bank of Japan may cause admit a large part of the movement of the price or it can be bored to tears
6B :. The British pound is generally active after 03:00 ET and a real blast to trade. It acts in a fairly logical way, but you always have to push around on the lookout for unexpected spikes in the price if it is not much volume in this market, what to take in stark contrast to trading in the cash session. Overall, this is a contract that you should always check for possible trades overnight.
If a night e-mini trader, your goal is to look at all contracts and determine which shows significant movement. Of the above-mentioned contracts, the 6E will generally have the heaviest volume of the set. If an e-mini scalper, I’m looking at the market at night is a reliable movement in price. As always, good luck in your trading.