Micro E-mini S&P 500 Trading Strategy – Backtest, Futures Example

With the S&P 500 index rising significantly over the years, the worth of the popular E-mini S&P 500 futures became out of reach to retail traders with small accounts. This prompted CME to create the Micro E-mini S&P 500 index futures contract, to make the market accessible to small-cap retail traders. But what is the Micro E-mini S&P 500 Index futures strategy?

The micro E-mini S&P 500 Index futures strategy refers to the methodology or technique you can use to profitably trade the micro E-mini S&P 500 futures. Micro E-mini futures are 1/10^th the size of their E-mini counterparts. They are traded electronically on the CME Globex platform, and settlement on expiry is by cash. The contract allows you to take positions on the direction of the S&P 500 index, either for speculation or hedging purposes. Your strategy can include technical and fundamental analyses for market timing, as well as risk management techniques.

In this post, we answer some questions about the Micro E-mini S&P 500 Index futures strategy. To help your trading we additionally make a backtest with strict trading rules.

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