Some simple questions: 1.Best Broker/Platform in Oz 2.Long-term Position Trading

May 14th, 2016, 09:50 PM

Hi all. I'm a new user not only to this site, but to forums in general so forgive anything I'm doing wrong here. (I've checked out Mike's introductory links and done some searches for these questions but haven't been able to find anything).

I'm about to move into futures trading and although have read all the books, done paper trades and am experienced in stock/options for over 10 years - feel I know nothing about this market if I'm being honest.

I have a system in place with futures which I would like to start implementing, but have the following questions:
1. what is the best system and broker to use when based in Australia?
2. My system is a more long-term system (weekly and monthly) rather than the day trading everyone discusses. I understand these longer-term positions are possible with futures but it doesn't appear like many people do this (mainly day traders). Is there something wrong with these longer term positions with futures - am I missing something here?
3. Where is the best place i can get historical daily data for indices and commodity futures/spot prices, or does this come from the platform I choose?

Apologies for the simple questions. I've been trading stocks and options for some time but am only beginning in the futures market and want to understand it before I start committing real money to it. Thanks in advance.

mattz · May 15th, 2016, 01:09 PM

WazzalJohn

Hi all. I'm a new user not only to this site, but to forums in general so forgive anything I'm doing wrong here. (I've checked out Mike's introductory links and done some searches for these questions but haven't been able to find anything).

I'm about to move into futures trading and although have read all the books, done paper trades and am experienced in stock/options for over 10 years - feel I know nothing about this market if I'm being honest.

I have a system in place with futures which I would like to start implementing, but have the following questions:
1. what is the best system and broker to use when based in Australia?
2. My system is a more long-term system (weekly and monthly) rather than the day trading everyone discusses. I understand these longer-term positions are possible with futures but it doesn't appear like many people do this (mainly day traders). Is there something wrong with these longer term positions with futures - am I missing something here?
3. Where is the best place i can get historical daily data for indices and commodity futures/spot prices, or does this come from the platform I choose?

Apologies for the simple questions. I've been trading stocks and options for some time but am only beginning in the futures market and want to understand it before I start committing real money to it. Thanks in advance.

I would like to answer question 2+3:

When you trade long term positions in futures you have to take into account:
1) Drawdowns
2) Rollovers
3) Higher level of margins (you need the entire margin for each future you hold)

There is nothing wrong with longer term approach to any asset class so long that you understand what you are getting into. Most do not approach longer term holding in futures because they lack capital and/or do not have the risk tolerance associated with holding positions overnight. The leverage in futures presents people with certain opportunities that that they like to take advantage of and feel comfortable with it's level of risk and reward. It's a personal preference in my opinion.

You come from equities but there is a big difference between long term investing and long term trading futures.
The leverage that exists in futures make a difference in when you analyze it, apply technical analysis and risk management.

In general, you should not follow what most are doing. Apply things as they relate to your risk tolerance and risk capital. This is a general statement that I say to everyone because trading is personal.

Lastly, I think one of the better platforms for longer term trading is Genesis TradeNavigator.
Again, one of those solid platforms that has been around for many years ( I think over 20) and has very good charting. There have their own data that they supply and trading could be done via CQG and/or Rithmic.

I hope this helps.

Matt Z
Optimus Futures and FX

There is a substantial risk of loss in futures and forex trading. Past performance is not indicative of future results.

Some simple questions: 1.Best Broker/Platform in Oz 2.Long-term Position Trading

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Some simple questions: 1.Best Broker/Platform in Oz 2.Long-term Position Trading