Detailed Analysis of E-mini versus Micro Nasdaq Algorithmic Trading System Differences


Yesterday, June 24, 2022, our Tick Pulse V12 NQ signaled a big winning trade on the E-mini Nasdaq but it was stopped out on the Micro Nasdaq. Why was there this difference?


The default entry rule for Tick Pulse V12 NQ is to enter the trade at the Close of the current bar - 0.5 on a limit order for long trades.


The E-mini Nasdaq closed at 11,955 at 10:00 am and placed the buy limit order at 11,954.50. The low of the next bar was 11954.50 so the signal was triggered, (we cancel and replace limits not filled to the market and this is a classic example of why, some of the best trades have the most slippage).


The Micro Nasdaq closed at 11954.50 at 10:00 am and placed a buy limit order at 11,954.00. The next bar opened at 11955.75 and that was also the low as the market surged. The limit order wasn't even touched so there was no cancel and replace limit order to a market order placed (we cancel limit orders to market orders if the price touches the limit order and it is not filled).


The Nasdaq surged more than 50 points in one minute right at 10:01. The buy condition still existed at 10:01 so the Micro took the signal at 10:02 at a much higher price and was then stopped out at a swing low price while the E-mini went on to make an incredible trade.


The new version Tick Pulse 2022 will use market orders by default.


This video highlights how there can be big differences on a day to day basis in relation to the same trading system trading micros and minis.


This is a discussion of hypothetical trading system signals that we do trade live but did not trade these live yesterday.

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