The transition to Futures trading

[cynic]

Further to my last post I just thought I'd add the following excerpt from one of several responses I received to one of my queries regarding the pricing of an OTC product:

.... A CFD does broadly replicate the price movement of the underlying asset, however this does not necessarily mean that they will be offered at identical prices at all times. Just as the clarifying statement in the quote you provided explains, this just means that when the underlying price of the GER30 changes, so too will the price of the CFD. If you look at the DAX charts you have found online, and compare it to a line chart created through Marketscope on the Trading Station Platform, you will see that each line generally follows the same movement and trend, however do not always display identical prices. This is because the price set on Marketscope is determined by the supply and demand of your fellow [Name of Company Omitted] traders in regards to this product.

 

[cynic]

MATE!!! You have no idea what you are trading. You simply do not understand the most basic fundamentals of what is on your screen and where it comes from. I don't know how much more I can say it. CFDs track the underlying futs tick for tick. That is why they call it a synthetic market.

What do you think it is that your MM is doing when they offer you an instrument and the prices change? What are you trading?

Our posts appear to have crossed. Whilst I have great admiration for your capability and experience, I've had discourse with a number of CFD providers whom have readily attested to the contrary.

 

[banco]

I have 2 x 30" and 2 x 24" screens so I have lots of charts and DOMs all over the place. But in practise I'm using the 1 min chart to trade off, 5 & 15 min for support/resistance areas. I don't switch chart periods during the day. If I think I need to be looking at it I'll already have it somewhere on my screens.

Do you only trade one instrument at any one time?

 

[Trembling Hand]

Our posts appear to have crossed. Whilst I have great admiration for your capability and experience, I've had discourse with a number of CFD providers whom have readily attested to the contrary.

Ok mate. So tell me you trust the providers to tell you the truth in regards to how they set their prices yet you don't trust the actual prices they give you?

Then further to that I can tell you with 100% certainty without ever asking the guys who I'm competing against that I know where the prices come from. I've beaten them.


Now all that aside. Here is a guy who is claiming to have "cracked the code" telling you to spend just $100 and have a look at it for yourself. But you are preferring to take the word of the people who you are trading against and don't trust. Seriously?

 

[cynic]

Ok mate. So tell me you trust the providers to tell you the truth in regards to how they set their prices yet you don't trust the actual prices they give you?

On the contrary, after receiving several contradictory responses, I do not even trust the people I've conversed with to know how their product actually operates.

Then further to that I can tell you with 100% certainty without ever asking the guys who I'm competing against that I know where the prices come from. I've beaten them.

Well done and good for you!

Now all that aside. Here is a guy who is claiming to have "cracked the code" telling you to spend just $100 and have a look at it for yourself. But you are preferring to take the word of the people who you are trading against and don't trust. Seriously?

Okay!

I'll have a quick squiz at that link later, but I've got to tell you that what I've been seeing firsthand on my screen for some years now, is far more compelling and difficult to dismiss than the second or third hand testimony of any expert.

 

[Evolve]

TH where do you recommend getting fut data from?
Unable to open an account with IB as i don't meet the requirements so am with CMC markets.

 

[Trembling Hand]

LOL. Ya try to help but ya cannot.

 

[cynic]

LOL. Ya try to help but ya cannot.

I quite understand your frustration, having experienced similar when trying to alert hopeful newbies to certain aspects of the OTC industry.

BTW, I just tried to click on that underlined part of your recent post, but it doesn't appear to be a link. Are you able to give me a search term or possibly a http address?

 

[Trembling Hand]

TH where do you recommend getting fut data from?
Unable to open an account with IB as i don't meet the requirements so am with CMC markets.

Probably the cheapest way is to open an account with http://www.ampclearing.com/

minimum account is $500 bucks and data is what ever the exchange cost are.

Do you only trade one instrument at any one time?

Only one. But there is a lot to look at. To get a picture of what is going on there is normally 3-5 other instruments that influence any market. EUR, US indexes, BUNDs etc

 

[fiftyeight]

Cynic can you tell us how you trade? Seems pretty complex over multiple brokers. I have been trying to figure it out for ages. I even had a look at a computational mathematics book you were reading haha

 

[fiftyeight]

BTW love your sig...

Seems I am not the only one who loves this quote

 

[skc]

LOL. Ya try to help but ya cannot.

Lol. Welcome back.

I guess I won't be seeing you at the Xmas party afterall!

Probably the cheapest way is to open an account with http://www.ampclearing.com/

minimum account is $500 bucks and data is what ever the exchange cost are.

Just to be clear. This AMPClearing doesn't appear to be related to AMP here in Australia.

 

[cynic]

Cynic can you tell us how you trade? Seems pretty complex over multiple brokers. I have been trying to figure it out for ages. I even had a look at a computational mathematics book you were reading haha

I presume the book you're talking about is the one by Graham, Knuth and Patashnik. This happens to be my favourite mathematics text.

Unfortunately, it just so happens that mathematics is only one of my main hobbies and is largely unrelated to my trading methodology.

Having said that, my methods are numbers oriented and largely unaligned with conventional analytical styles.

My use of one particular strategy across multiple brokers was a failed trial this year which turned into a logistical nightmare when a trillion euros of QE was dropped into the mix. This failure alone accounts for approximately half my financial year to date losses.

The strategies involving multiple accounts relate to my main broker/provider and, although my performance this financial year has been exceptionally dismal, I still believe that they hold merit and am thus reluctant to reveal anything too specific about these methods (particularly given that they accounted for approximately 70% of my gross income in the previous financial year!).

 

[>Apocalypto<]

LOL. Ya try to help but ya cannot.

AMP look good TH have you traded live with them?

 

[Trembling Hand]

AMP look good TH have you traded live with them?

Yep. from me.

 

[>Apocalypto<]

Yep. from me.

your a gem TH i can afford to trade a lot of futs with them based on their DT margins... going to open a demo on NT and a few other platforms. also see the MDAX 5EUR a point but i worry about liquidity... will have a look on demo.

many thanks man that find is on par with the saints steal win last sunday!

 

[Modest]

your a gem TH i can afford to trade a lot of futs with them based on their DT margins... going to open a demo on NT and a few other platforms. also see the MDAX 5EUR a point but i worry about liquidity... will have a look on demo.

many thanks man that find is on par with the saints steal win last sunday!

QTrader Looks good....

They offer 60 platforms I wouldn't know where to start. TH any comments on which platform to use?

 

[>Apocalypto<]

coms look better then IB as well.

 

[CanOz]

Another option for brokers would be Stage 5. I believe they clear through AMP anyway, but they told me they could beat on commissions....

Same platform choices too I think.

BTW, we're in beta testing with ninjatrader 8, there are some videos around on YT on it. It's DOM is much improved and it's less resource intensive now...

I've been with AMP for 4 years now and have had no issues for 3. Also have a backup account with IB, prefer amp's CQG data.

 

[fiftyeight]

I presume the book you're talking about is the one by Graham, Knuth and Patashnik. This happens to be my favourite mathematics text.

Yup thats the one. I would like to tackle it at some stage but that wont be anytime soon

Thanks for the insight Cynic