The transition to Futures trading

[fiftyeight]

Just opened some charts.......Any reason for the march onward and upwards????

 

[skc]

Just opened some charts.......Any reason for the march onward and upwards????

http://www.bloomberg.com/news/2014-...interest-rates-for-first-time-since-2012.html

 

[fiftyeight]

Cheers SKC

It is these kinds of things that expose my lack of understanding/knowledge...... again. A few good winners are allowing me to make many many mistakes and still be profitable. This will not last forever.

I wrote something about my lack of mentor blah blah blah or help blah, but I deleted it. There is enough info on this Forum to get started and find my own niche....I hopr

 

[VSntchr]

My original plan was to wait for volume as a signal to exit, maybe I should stick to this and forget how much profit I am in.

From someone who doesn't trade futures, but does trade - this bit of your post stuck out to me.

 

[Jasonm2310]

Does anyone on here trade futures spreads and is Guy Bowers material any good?

 

[dlineinvestor]

Does anyone on here trade futures spreads and is Guy Bowers material any good?

I don't do spreads buy you would know he trains prop traders, I'd say every little bit of info helps.
Mind if I ask what tools your using ?

 

[Jasonm2310]

Only trade outright at this stage with NT and Jigsaw Dom. Been looking at it recently and it seems this method isn't very common among retail traders, which arouses my interest even further.

 

[dlineinvestor]

Only trade outright at this stage with NT and Jigsaw Dom. Been looking at it recently and it seems this method isn't very common among retail traders, which arouses my interest even further.

Maybe not with retail but probably with algo's, you might have your work cut out for yah.
"NT and Jigsaw" that should work fine on most indicies. (Do you trade them ?)
Using that combo at s/r levels and pattern breakouts among other things ?

 

[Jasonm2310]

Maybe not with retail but probably with algo's, you might have your work cut out for yah.
"NT and Jigsaw" that should work fine on most indicies. (Do you trade them ?)
Using that combo at s/r levels and pattern breakouts among other things ?

Whilst s/r levels, patterns, etc do have validity I wouldn't mind delving into spreads to see what there all about, besides if it does not fit my style it can only broaden my experience of the markets and it's players.

 

[CanOz]

Whilst s/r levels, patterns, etc do have validity I wouldn't mind delving into spreads to see what there all about, besides if it does not fit my style it can only broaden my experience of the markets and it's players.

I traded calendar spreads for a while and to be honest i didn't do very well. I didn't stick with it long enough though so not really a great reference. I did notice that they were quite easy to trade in that the risk always seems to under control, likely because the volatility was removed from the equation. Very inconvenient to trade unless you are in the US i reckon. When you need to enter and exit was best with the most liquidity.

Guy Bower and the Propex guys were bill spreaders, Short Term Interest Rate futures (STIR). With their low commissions thy could take 100 lots in size and get a move of a few ticks for quite a bit of profit. Pretty tough for us little guys to do that. Allot of how successful they are depends partly on how good they are at legging into the spread, or getting up to full position size on both or all (there are all kinds of spreads, involving up to 4 instruments, buttterflys, condors etc.) contracts.

It seems that if you get good at trading spreads there is a ton of money to be made. I met an ex-Propex trader that was a bill spreader for years and he is quite wealthy now...he's still young too.

CanOz

 

[Jasonm2310]

Thanks Can Oz, quite interesting. I've already noticed the hours aren't really suited to when I usually trade. Most definitely will be looking into the method further.

 

[fiftyeight]

Has after hours trading changed on the FTSE?

 

[Jasonm2310]

Can Oz - What calendar spreads did you trade?

 

[CanOz]

Can Oz - What calendar spreads did you trade?

Agriculture and energy. There's a ton of energy spreads, grains etc....

 

[Jasonm2310]

Can Oz - Does this sound about right? For every 2.5/32nd move in the Tnote, there should be a move of 5/32nds in the Tbond and 1.5/32nds in the Tnote?

 

[CanOz]

Can Oz - Does this sound about right? For every 2.5/32nd move in the Tnote, there should be a move of 5/32nds in the Tbond and 1.5/32nds in the Tnote?

See my table.

 

[Jasonm2310]

See my table.

So do you divide the DV01(on CME site) by $31.25 to see how many 32nds it takes to move yield by 1bp?

 

[pavilion103]

Has after hours trading changed on the FTSE?

Appears so

 

[fiftyeight]

If I was running an exchange I would want ppl trading and paying brokerage 24/7.

If I was someone trading size I would want to be able to trade 24/7.

What am I missing?

 

[CanOz]

So do you divide the DV01(on CME site) by $31.25 to see how many 32nds it takes to move yield by 1bp?

I have some information (as i said in a PM to you) that will help you understand how to trade STIR futures, including how to trade the Yield curve.

I have not traded STIR futures so in order for me to answer your question i am going to have to read my information first, then work through your example. Unfortunately i have work to do to get ready for an important visitor next week, so i can only offer to share my information with you.

Cheers,


CanOz