Trading The ‘Beans’

ENDAME

Well, I switched over to the grains for a day. I wanted to see if they still had volatility during the summer. I back tested a setup and it looked pretty good, so I gave it a try.

The setup is similar to my normal setup, but works better on non indexes.

The grains have a few big differences. The first big difference with the grains is that they can go up or down limit. That is , a price can go so high, the futures stop trading and you are caught in a position. So always have a stop loss order IN the market well inside the limit up/down prices.

The second is the trading hours. Grains trade from 9:30 CENTRAL to a little after 1 pm, a much shorter trading day.

The tick size is the same as the ES ( Emini S&P ) , $12.50

So I traded the Nov ZS (Soybeans ) and did two trades for a point each. I bailed at noon. There was another winner but I was gone by then. The big thing is I worry about limit up / down moves.


+2.00 ZS points

Photo By Kevin H

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