FTSE Equity Trading

[peter2]

Hello VSntchr, good to see you around the forum (even if it's during the UK session). I have to say that the UK session is my favourite time of day to pick a trade. Nice result on WG/TLW even though both fell.

Looks like the FTSE is stuck in a range like the ASX. Have you considered trading the major futures markets?

 

[VSntchr]

Legging into TSCO / MRW today.
Was some industry news on market share but numbers not overly significant and did show small gains to TSCO and losses to MRW.
TSCO avg 206.52 / MRW avg 226.21

Also entered BDEV / MCS yesterday and am in the depth to close prematurely at 70% of my 2.1% target. I tend to take 70% of the target if its offered to me within 2 days. This helps to keep a strong win-rate and move on for the next trade, obviously the trade-off is potentially leaving a bit on the table.

So far I am finding opportunities across multiple sectors with trades being placed in: oilers, food & grocers, home builders. I have other sectors within the database that look promising including: media, construction, food & drug, utilities, apparel, defence, chemicals.

 

[VSntchr]

Hello VSntchr, good to see you around the forum (even if it's during the UK session). I have to say that the UK session is my favourite time of day to pick a trade. Nice result on WG/TLW even though both fell.

Looks like the FTSE is stuck in a range like the ASX. Have you considered trading the major futures markets?

Thanks
I have often thought about futures, but haven't really given it a proper go.
I once had a play around with some index cfd products on the FTSE, DAX and ASX cash markets, but concluded at the time I didn't really have an edge and found myself lacking discipline on both entries and (especially) exits.

Most of my edge (in my mind) comes from building up a database of knowledge on tradeable securities and then using that to my advantage when (if) these stocks come 'in-play'. This is why I have started out with pairs on the LSE as I believe it is a fantastic way to develop the knowledge of the stocks and sectors.

Is the UK session your favourite due to your own timezone? Or due to market characteristics?

 

[VSntchr]

Quick note: The LSE has a 2min close at 12pm every day. It allows an auction process for market participants to clear orders. Haven't really utilised it yet, but I can see it being useful to get fills on my pairs legs.

Entered L CCH 1619.5 / S DGE 2057.5


Also entered L ERM 1069 / S ITV 193.4
Pretty nice target here, keeping size at half of usual given there is a trend in the ratio curve and obviously bigger targets mean the pair can whip around a lot more. ERM is involved in publishing magazines, newsletters etc, while ITV owns a commercial TV network - not perfectly business correlated but the sector correlation is enough for my short term position.

 

[VSntchr]

Bit of an update here.
Haven't had much action on the LSE since last post due to the XMAS break.
Managed to close CCH 1653 /DGE 2057 pair for a profit of 2.19% over 1 day.

The ERM / ITV trade was scratched for a small loss - I had an oversight here and missed the important fact that the daily volume in ERM is far too low to be holding in a pairs position. Very bad to let this get through as sufficient liquidity should be an initial check, glad I had the discipline to take the slippage and get out.
I concluded that this error came about from trying to hard to fill the portfolio with pairs. I need to remind myself that learning a new stock universe will take time and it is OKAY to start slowly.

New Trade: L ABF 2647 / S BVIC 588. Size 5%

ABF - Associated British Foods is a diversified international food, ingredients and retail group with a focus on the sugar segment.
BVIC - Britvic is an international soft drink manufacturer and distributor with a portfolio of brands.

P.S In yet another problem I am having with PTF - the pair charts don't seem to update on the day that a trade signal is generated. For example, if a signal is generated on the 6th Jan - the ratio chart will only be updated until the 5th. I have emailed support and am awaiting a response.

 

[McLovin]

Hey VS

I may have missed something, but what was the reason for the move to trading UK stocks in the UK? Change of scenery or more opportunities or...?

 

[VSntchr]

Hey VS

I may have missed something, but what was the reason for the move to trading UK stocks in the UK? Change of scenery or more opportunities or...?

Hey mate
I am living abroad in Barcelona for a while (min 12 months). Still trading the ASX but attempting to transition some of my activity over to the UK. ASX opens here at midnight, so not overly desirable

 

[McLovin]

Hey mate
I am living abroad in Barcelona for a while (min 12 months). Still trading the ASX but attempting to transition some of my activity over to the UK. ASX opens here at midnight, so not overly desirable

Ah gotcha. Enjoy Barcelona and Spain, I could think of much worse places to spend a year or two.

 

[MARKETWINNER]

http://www.marketwatch.com/story/ft...ut-mining-stocks-hit-by-downgrades-2017-04-25