The transition to Futures trading

[LinRegSlope]

I only trade the SPI (well, the Australia 200 Cash IG equivalent thereof).

Have you considered TradeDirect365. They have a product that tracks actual SPI market data, so the bid/ask is the same as the SPI futures contract. It is however a CFD and with a Market Maker. I'm trialling it at the moment with a few trades here and there, due to the low margin compared to my IB account requirements (TD365 is approx $800 margin intraday or overnight per contact as opposed to IB's approx 7k per contract - due to regulatory changes last year for margin on Aus products). Trade commission is comparable with IB when trading equivalent $ value.

 

[MichaelD]

Have you considered TradeDirect365. They have a product that tracks actual SPI market data, so the bid/ask is the same as the SPI futures contract.

Right at the moment I am happy with the instrument I trade. I know its specific behaviours and quirks very well. There is no compelling need for me to change, particularly to another OTC Market Maker.

The IG Australia 200 Cash tracks the SPI tick-for-tick. It's just offset a little bit.

 

[LinRegSlope]

Right at the moment I am happy with the instrument I trade. I know its specific behaviours and quirks very well. There is no compelling need for me to change, particularly to another OTC Market Maker.

The IG Australia 200 Cash tracks the SPI tick-for-tick. It's just offset a little bit.

No problem, I just noticed on a few of the charts you have posted the difference sometimes being a good 10-20 points.
Completely relate to what you are saying. It took me years to work through the mountain load of products and platforms before finally finding the right products and platform.

 

[cynic]

No problem, I just noticed on a few of the charts you have posted the difference sometimes being a good 10-20 points.
Completely relate to what you are saying. It took me years to work through the mountain load of products and platforms before finally finding the right products and platform.

I think you'll find that what you're observing is the difference between the "cash" and the "forward" contracts.

 

[pavilion103]

I just subscribed to the SPI (free) and DAX futures ($12 EURO per month).

Time to expand the horizons a little beyond just the FTSE.

I will probably study these for a couple of months before actually trading them.

With the FTSE I save every day's 3 min chart and the daily chart every night.

I'll probably do something similar with these and give myself a couple of months to get a feel for them.

Any advice I'm happy to hear.



I hear a lot that the DAX moves much faster than the FTSE and is about $38 AUD per every 1 point move so much more risk than the FTSE.

I don't know much about the SPI. It doesn't look like it behaves too differently to the FTSE. I'd have to study it a lot more though.

 

[Newt]

Will be interested to hear your experiences with the extra instruments Pav, or learn from experience of others familiar with DAX, SPI (or HSI). US market is never going to work for my body clock.

Seems to make a lot of sense to be watching other markets even while honing skills in a single instrument (FTSE).

 

[pavilion103]

Will be interested to hear your experiences with the extra instruments Pav, or learn from experience of others familiar with DAX, SPI (or HSI). US market is never going to work for my body clock. Seems to make a lot of sense to be watching other markets even while honing skills in a single instrument (FTSE).

Yeh body clock makes US tough.
If I wasn't working and I was on for the first hour from 11pm to 12 or so and could leave a trade running, I'd consider it, but definitely not for me right now.

I'm looking forward to exploring the others.
I will keep posting my journey.

 

[pavilion103]

SPI looking a bit weak on open.

Important position on the chart too.

Chart doesn't look as strong as some others suggest IMO!

 

[LinRegSlope]

As expected due to the holidays in the UK and the US tonight the SPI is fairly directionless. One small loss, tempted to sit it out today?

 

[CanOz]

As expected due to the holidays in the UK and the US tonight the SPI is fairly directionless. One small loss, tempted to sit it out today?

sometimes no trade is the best trade....

 

[LinRegSlope]

SPI looking a bit weak on open.

Important position on the chart too.

Chart doesn't look as strong as some others suggest IMO!

What timeframe are you looking at?

30 min chart below @ 10:48 EST

 

[pavilion103]

What timeframe are you looking at? 30 min chart below @ 10:48 EST <img src="https://www.aussiestockforums.com/forums/attachment.php?attachmentid=58118"/>

That's a good one.
At the top and showing some weakness.
But interesting to see the follow through.

 

[CanOz]

That's a good one.
At the top and showing some weakness.
But interesting to see the follow through.

With the Hang Seng and H Shares due to open in 15 minutes you could well see some weakness as the SPI gets led around like a little puppy...

 

[pavilion103]

With the Hang Seng and H Shares due to open in 15 minutes you could well see some weakness as the SPI gets led around like a little puppy...

Haha all new to me.
Will watch.

 

[CanOz]

Haha all new to me.
Will watch.

The Asian Markets aren't doing too bad...gap up...

 

[pavilion103]

Intra day SPI If it was FTSE id take the setup at 18, stop 24.

Does it only move in 1 point increments

 

[MichaelD]

SPI looking a bit weak on open.

Important position on the chart too.

Chart doesn't look as strong as some others suggest IMO!

I still believe this assessment is primarily because you want the market to fall to prove yourself right, as opposed to letting price action answer the question.

ps IG Clients agree with you, Pav. Selling quite aggressively at the moment & 70% short. Makes me feel more bullish.

As expected due to the holidays in the UK and the US tonight the SPI is fairly directionless. One small loss, tempted to sit it out today?

Agreed. Not much happening. +5 for the day. Unlikely to be anything much else until we get direction from elsewhere.

 

[LinRegSlope]

Intra day SPI If it was FTSE id take the setup at 18, stop 24.

Does it only move in 1 point increments

Mostly. The spread typically during the day session is 1 point, but can be significantly larger during the night session.

 

[pavilion103]

I still believe this assessment is primarily because you want the market to fall to prove yourself right, as opposed to letting price action answer the question.

ps IG Clients agree with you, Pav. Selling quite aggressively at the moment & 70% short. Makes me feel more bullish.



Agreed. Not much happening. +5 for the day. Unlikely to be anything much else until we get direction from elsewhere.

Michael, I don't believe so. I am analysing price action alone. But we can agree to disagree.

Either I will be vindicated in my current analysis of price action.
Or I will be wrong and learn from it.

As price action changes, so will my opinions. I don't care whether I'm long or short.

 

[LinRegSlope]

Agreed. Not much happening. +5 for the day. Unlikely to be anything much else until we get direction from elsewhere.

-5 for the day. Appears to be struggling to get up past this 20-30 area, but then again low volume so no real weight behind this comment.