Trading the SPI
- Thread starter Bronte
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Realist
Billie Jean is not my lover
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My stocks are redder than a baboon's bum today. 
Only just had a look, broke down I see, should have left my Sell order in place .
Anyone who trades the Spi will no doubt know how frustrating it can be , often when I go back to work I have left orders in my workstation, always a buy on stop and sell on stop, (like a bracket order) you get by default a stop should 1 order be hit, stop is a bit big on some occasions although Larry Williams and Bronte may not agree (only joking Bronte, or is that Batman ?).
Been caught on a few occasions for a big stop out, however once I log back in usually with a couple of hours at the most the Stop is bought in to breakeven as by then the market is moving in the right direction, have to say this is not always the case and im well underwater, which is 1 reason I don’t do it so much anymore .
Anway 2 trades and + 9 points and i missed the runner, thats maybe it for the day, will be unable to trade the close, think that discount may well come in by days end though.
.Anyone who trades the Spi will no doubt know how frustrating it can be
, often when I go back to work I have left orders in my workstation, always a buy on stop and sell on stop, (like a bracket order) you get by default a stop should 1 order be hit, stop is a bit big on some occasions although Larry Williams and Bronte may not agree (only joking Bronte, or is that Batman ?). Been caught on a few occasions for a big stop out, however once I log back in usually with a couple of hours at the most the Stop is bought in to breakeven as by then the market is moving in the right direction, have to say this is not always the case and im well underwater, which is 1 reason I don’t do it so much anymore
.Anway 2 trades and + 9 points and i missed the runner, thats maybe it for the day, will be unable to trade the close, think that discount may well come in by days end though.
Bronte
Trading The SPI for 20+ years
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Hi Folks
just about completed move to Mexico (MLB)New trading room nearly together screens ,wires, computers and furniture nearly as it should be .Got ADSL back on a couple of days ago and reviewed the Forum this morning,good to see there is no backing off in the debating (bickering) dept. Looks like I've missed some fantastic trading over the last few weeks and am looking forward to getting back into it.In the meantime I have been dumping and clearing up saved info and reading Waynes posts re contract #s and drawdowns etc I thought this might make interesting reading for some of you
Is eight figures a realistic goal? It has been done by private own account traders for years. Paul Rotter from Germany, 32 years old, is one trader that has made €50-60+ million ($65-78 million) per year for 10 years trading the most liquid contracts at the biggest futures exchange in the world, Frankfurts Eurex debt futures, primarily the Bund contract.
In 2003 I received an email from a former Man Financial broker in London who said, "One of our private customers has been the highest volume trader on Eurex for the last 8 years. He trades approx 3 million lots a month and makes himself €50 million a year, which he has apparently been doing for the last 10 years." In 2004 I learned that it is Paul Rotter. He is notoriously called "the flipper".
The bottom line is there are other traders, we never hear about, making 8 figure profits. If Rotter's trading style did not attract attention then we would have never heard of him. If Rotter and others can do it, then maybe you can to. Remember, trading is very risky and you will lose all your money if you do not know what you are doing and when to do it. So please do not trade unless you are ready and willing to accept and take personal responsibility for the outcome
Interesting reading and we all need to remember the last few lines
Good Trading to you all
Bearman
just about completed move to Mexico (MLB)New trading room nearly together screens ,wires, computers and furniture nearly as it should be .Got ADSL back on a couple of days ago and reviewed the Forum this morning,good to see there is no backing off in the debating (bickering) dept. Looks like I've missed some fantastic trading over the last few weeks and am looking forward to getting back into it.In the meantime I have been dumping and clearing up saved info and reading Waynes posts re contract #s and drawdowns etc I thought this might make interesting reading for some of you
Is eight figures a realistic goal? It has been done by private own account traders for years. Paul Rotter from Germany, 32 years old, is one trader that has made €50-60+ million ($65-78 million) per year for 10 years trading the most liquid contracts at the biggest futures exchange in the world, Frankfurts Eurex debt futures, primarily the Bund contract.
In 2003 I received an email from a former Man Financial broker in London who said, "One of our private customers has been the highest volume trader on Eurex for the last 8 years. He trades approx 3 million lots a month and makes himself €50 million a year, which he has apparently been doing for the last 10 years." In 2004 I learned that it is Paul Rotter. He is notoriously called "the flipper".
The bottom line is there are other traders, we never hear about, making 8 figure profits. If Rotter's trading style did not attract attention then we would have never heard of him. If Rotter and others can do it, then maybe you can to. Remember, trading is very risky and you will lose all your money if you do not know what you are doing and when to do it. So please do not trade unless you are ready and willing to accept and take personal responsibility for the outcome
Interesting reading and we all need to remember the last few lines
Good Trading to you all
Bearman
Bearman52 said:
hi Bearman and good luck
Certainly makes you think doesnt it, this Guy Paul Rotter, wow, here iam scratching around with 1 or 2 contracts thinking im doing ok, you can join the 10% or whatever % it is who make money trading futures but of that its about 2% or 3% again of that 10%, maybe less that make the serious $$$$$$$.
IMO the biggest problem for a trader is getting out of the Fear and Greed mentality, for me i know its my biggest obsticle, trading 1 contract i back out of trades sometimes when i know i shouldnt, i tried trading 5 contract but couldnt do it, with 1 on the whole im comfortable.
My demon needs to be conquered
Cheers
Pager
Pager said:hi Bearman and good luck
Certainly makes you think doesnt it, this Guy Paul Rotter, wow, here iam scratching around with 1 or 2 contracts thinking im doing ok, you can join the 10% or whatever % it is who make money trading futures but of that its about 2% or 3% again of that 10%, maybe less that make the serious $$$$$$$.
IMO the biggest problem for a trader is getting out of the Fear and Greed mentality, for me i know its my biggest obsticle, trading 1 contract i back out of trades sometimes when i know i shouldnt, i tried trading 5 contract but couldnt do it, with 1 on the whole im comfortable.
My demon needs to be conquered
Cheers
Pager
Your not alone mate.
By rights with my money management i should be trading 100 contracts ($100 per point move for CFD's).
As my stops are 10 points away which allows for a 1% risk per trade on my capital.
But im stuck with 20 contracts as my mentality needs to learn losing is part of the game.
It wont happen overnight but it will happen.
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Remember it's a long weekend in UK &US. porkpie
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hi there freddo ,your right the entries do look alright ,but as many traders quote ,its the exits that determine if make the money or not ,althou a good entry gets one on there way to profits quicker,,
Hey was just wondering you or anyone else ,im reading about the spi being at fair value 'they say ' fair value on the spi is 4940 but it closed at 4975..
My question is who determines what the fair value price is ,and can it be used to make a judgement on direction ?
My next question then is how does one arrive at this fair value of the spi ,can i get it from a website or can one do it themselves?
Nathan
Hey was just wondering you or anyone else ,im reading about the spi being at fair value 'they say ' fair value on the spi is 4940 but it closed at 4975..
My question is who determines what the fair value price is ,and can it be used to make a judgement on direction ?
My next question then is how does one arrive at this fair value of the spi ,can i get it from a website or can one do it themselves?
Nathan
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nat said:
Hi Nathan,
You are absolutely right, getting in a trade is one thing managing it is another.
RE: Fair Value, this is how I understand it
I used to get the price of the index itself and spot SPI200
contract, then work out the the days to expiry of the current/spot contract
use the price of the index by bill rate for the days to expiry and add that to
the current index price.
Bugger that doesn't seem to make sense lets use an example
ASX200 Cash is say 5000
Future contract (current/spot) is at 5200
Days to expiry 60
Bill rate 5.25
Mulitply 5000 by 5.25%, divide by 365 to get daily then multiply by 60
to get carry amount to contract expiry, I think that comes to 43
Add this amount to ASX200 price 5000 + 43 5043
So current contract (5200) is at a premium to cash 5043.
Fair value would be where the current contract and Cash price pplus carry
amount are similar.
Regards
Freddo
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nat said:
No worries
Here's a spreadsheet I used to use.
You might be able to use it to build something for yourself
Realist
Billie Jean is not my lover
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I'm thinking its going up.
We'll see...
We'll see...
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