The transition to Futures trading

[pavilion103]

Are you looking @ the SPI through IB?

I think I remember when i first got IB like 18 months ago I had a look @ the SPI and the volume was all off, I remember posting or starting a thread about it around here somewhere or something and then emailed IB asking them, got some dodgy reply about them 'working on it' Cam to the conclusion to not trust IB for SPI volume data.

Yeh bizarre.

Intraday seems ok.

Daily is a mess.

 

[jmg86]

Is it every 5 days or so?

Its probably printing the early Saturday morning SYCOM trading as its own day. You may have to adjust the ignore daily interval.

Good thread btw.

 

[kid hustlr]

Is it every 5 days or so?

Its probably printing the early Saturday morning SYCOM trading as its own day. You may have to adjust the ignore daily interval.

Good thread btw.

yep this to from memory.

 

[pavilion103]

Is it every 5 days or so?

Its probably printing the early Saturday morning SYCOM trading as its own day. You may have to adjust the ignore daily interval.

Good thread btw.

Sounds about right. Thanks.

 

[pavilion103]

The plan for me with the SPI is to take only very obvious setups in the first hour and get stop to BE asap.

Maybe a profit take target or just monitor it periodically.

I could easily get away with placing a trade in the morning and monitoring the initial stages to manage risk but I couldn't be too active during the day.

 

[Wysiwyg]

With regards to trading potential major/intermediate tops or bottoms for a position trade :-

Price often returns to near the top/bottom or a slightly new high/low before changing trend completely. This leaves the trader with a choice between holding as profits reduce or selling which is contrary to the initial reason to enter for position i.e. major/intermediate top or bottom. I held positions short over 1.09 on the AUD/USD only to be spooked out. I held long positions on the ASX200 below 3300 points and got spooked out.

I tried countering this frustration by hedging a position once in profit. This locks in profit but sooner rather than later one position has to be cut. This strategy did not work for me but it was satisfying watching price move against my original position with no loss. The game is over once either position is closed.

 

[pavilion103]

With regards to trading potential major/intermediate tops or bottoms for a position trade :-

Price often returns to near the top/bottom or a slightly new high/low before changing trend completely. This leaves the trader with a choice between holding as profits reduce or selling which is contrary to the initial reason to enter for position i.e. major/intermediate top or bottom. I held positions short over 1.09 on the AUD/USD only to be spooked out. I held long positions on the ASX200 below 3300 points and got spooked out.

I tried countering this frustration by hedging a position once in profit. This locks in profit but sooner rather than later one position has to be cut. This strategy did not work for me but it was satisfying watching price move against my original position with no loss. The game is over once either position is closed.

I think the payoff can be so good with these major top/bottoms that the regret of being panicked out is far greater than the regret of giving back open profit. Particularly if it is going against your original plan to capitalise on a big move.

If you get in near the top and is moves initially in your favour it saves you a lot of effort and potential failed attempts to get back in for the big move. It takes a lot of the thinking and effort out of it.

If it was a short; on the way down I would
1) Trade a contract long for any good intra day setups
2) Trade a contract short for any good intra day setups.
(essentially trade the same as usual while holding 2 or 3 contracts).

The ability to trade a long contract means you can hold the original position but in essence "save" any profit when the market finds temporary support and pushes back up.


I am still looking to take a position trade at this top if a good opportunity presents.

I think of the effort I would have saved had I sold 2 contracts at 6872 (I did this) and held (I didn't do this) at the high of 6881.

I think there is potential opportunity now though and each night I will look for a trade.
IF it moves in my favour heavily initially, I will hold.

 

[elbee]

Is anyone able to enlighten me as to the volume action on the SPI?

On the daily chart, why are there (what appears to be) regularly (and spaced out) days where the volume is a tiny fraction of the other days?

This is nothing like I've seen before. I'm surious as to the reason.

Mondays are often quiet on the SPI and overseas exchange holidays will dampen volume.

 

[pavilion103]

The FTSE chart is very interesting right now.

Tight consolidations are usually followed by explosive action in either direction.

The last 3 bars on the FTSE are exceptionally tight.

Tues 27th May - Range 6813.5-6846.5 (33 point range)
Wed 28th May - Range 6821-6845 (24 point range)
Thurs 29th May - Range 6827.5-6844.5 (17 point range) - PRE OPEN

Essentially the last 2 days have been very tight range bars on reasonably low volume.

Expect something to happen.

 

[pavilion103]

Is the DOW about to roll over?

Will this test of the recent little high fail?

Who knows? The next few days might paint a picture.

 

[VSntchr]

Burning a hole in the 6855 level atm...

 

[pavilion103]

Burning a hole in the 6855 level atm...

I thought that it was setting up perfectly for a short at around 6852.
Had a setup in place for 2 contracts.
Price stagnated for too long to be a decent short so I cancelled them.

I've taken 1 long @ 6859

We will see how it goes.

Stop to 6858 very quickly. Either it takes off initially or I'm out.

Bigger volume coming in. Something to happen here probably........

 

[pavilion103]

If that caught people out and it pushes down sharply I will be looking to the short side again.

 

[pavilion103]

Closed out.

Only looking at shorts now.

 

[Boggo]

Daily chart. A break through 6896 needed otherwise a repeat of the behaviour between 1 and 2 into the W.4 area is a possibility.

Just my

(click to expand)

 

[RADO]

Sounds about right. Thanks.

Yeah I never noticed this before until you guys mentioned it but than again I never really look at daily charts at all. Here's a screenshot of IB vs IQfeed if anyone wants to compare.

 

[pavilion103]

Question about the SPI.

I've got the hours that it is open. After 4pm it says that it closes for 30 mins and then is back on?
Are the only hours where it is active up until 4pm when it closes? After this is it thin?

Trying to get up to speed with the SPI.

I am looking to keep an eye on the first hour or so each day (and take a peak when I feel like it) and take very few trades (but good setups).


Also it seems like the SPI moves rather slowly?
I know the DAX is crazy and that is another level, but even compared to the FTSE the SPI seems quite slow.
Thoughts?

 

[cynic]

My understanding is that SPI futures close for 30 minutes at 4:30 PM AEDST

Other than that, your general observations seem largely consistent with my more recent experience of SPI futures. (It used to have significantly more overnight volatility back in the good old days!)

Edit: I forgot that 4:30 PM equates to 4:00 PM in S.A.

 

[pavilion103]

Does anyone know what has happened on the SPI JUNE 14 contract? It has just about stopped. Looked like it's rolling over maybe?

But there is no volume on the SPI JUL 14 contract either.

Anyone got any ideas?


Also are the SPI contracts changed monthly and not quarterly like the FTSE?

 

[kid hustlr]

Sep contract bud

roll ends soon I think close any june positions now

EDIT: cash settled so wouldn't be a disaster but can't see why you'd want a JUne position now. SPI traded quarterly contracts