Diversification while Trading Futures? - Commodities Futures Trading | futures io social day trading
futures io futures trading


Diversification while Trading Futures?
Updated: Views / Replies:1,456 / 12
Created: by Trendi Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

Diversification while Trading Futures?

  #11 (permalink)
Elite Member
Ireland
 
Futures Experience: Intermediate
Platform: Ninja Trader
Favorite Futures: CL GC FDAX
 
Posts: 118 since Jul 2012
Thanks: 85 given, 48 received

As i see it, if you have a base strategy that has can produce decent results/probabilities then your next stage is to diversify. What Kevinkdog says above is spot on.
Lets say you apply your strategy over say 4 or 5 instruments that have proven worthy of being included in your portfolio then your odds start to get much better. Lets say one of even two of them drag you backwards for a day or two then it shouldnt really knock you sideways too much.
Kevin is bang on. Its also a great way to smoothen out that eq. curve.
BTW it is most important that the whole set up is well funded from the off and well able to withstand the so called black swan day in case it happens in the early days. Its also very important that your base strategy does what you think it should do.
In terms of non-correlation, I think this is important. I have had good results with the CL, HG, FDAX, NG and a bit of 6E fired in the mix too. Why not give vix futures a whirl too

Reply With Quote
The following user says Thank You to Bosch777 for this post:
 
  #12 (permalink)
Elite Member
Ireland
 
Futures Experience: Intermediate
Platform: Ninja Trader
Favorite Futures: CL GC FDAX
 
Posts: 118 since Jul 2012
Thanks: 85 given, 48 received


kevinkdog View Post
After 20 some years of trading, I have come to the conclusion that diversification, done properly, is the closest thing to the Holy Grail that exists. You can get a smoother equity curve, and you don't have to rely on one trading method that may stop working one day.

The drawback is that it takes a lot more money to diversify, and Black Swan events (where everything becomes correlated for a while) can bite you really bad.

Kevin I tried to give you a rake of thanks but cant..! I fully agree with your view on this one.

Reply With Quote
 
  #13 (permalink)
Trading for Fun
Sunnyvale, CA
 
Futures Experience: Advanced
Platform: TTTrader
Favorite Futures: CL
 
Posts: 160 since Dec 2012
Thanks: 8 given, 94 received


diversification across different futures products doesn't really lower your risk.

when trading futures, buy options to limit your risk.
eg. if you are trading CL (crude oil) futures, buy the options on those CL futures.

additionally the options protect you in cases when stop losses don't.

Reply With Quote

Reply



futures io > > > > Diversification while Trading Futures?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Diversification Hotch Psychology and Money Management 9 April 24th, 2013 01:09 PM
Futures Broker v CFD Provider for trading futures rcampbell Reviews of Brokers and Data Feeds 3 January 5th, 2012 01:53 PM
Forex base currency and portfolio diversification andrewtrader Currency Futures 5 December 9th, 2011 03:59 AM
The Elusiveness Of Currency Diversification Quick Summary News and Current Events 0 November 3rd, 2011 01:20 AM


All times are GMT -4. The time now is 02:35 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-14 in 0.08 seconds with 19 queries on phoenix via your IP 54.221.76.68