FDAX short term and the FGBL

November 24th, 2019, 08:28 AM

I trade FDAX short term (1 - 100 min) and I have often heard that it would be important to observe the FGBL.
So I've been watching the FGBL for a few weeks now.

I have tried to use it as a filter for my set-up, Not good.

I've tried to take him into account in position management: Hold or take? Even worse!

I don't understand what this guy trys to tell me?

Question: Do you use the FGBL in FDAX short term trading? If so, for what?

Willbur

November 24th, 2019, 08:38 AM

This is just a classic/logical/standard interpretation, if equities (FDAX, ES...) move up, financials (FGBL, ZB...) should move down and vice versa. This is called correlation. This happens very often, but not all the time.

November 26th, 2019, 04:07 PM

I also find these correlation / inverse correlation adding a lot of noise on very short term trading.
If the other instrument is in a period when it is leading, fine, but if it's lagging, you'll miss trades waiting for confirmation.

I end up watching the order flow of my instrument: if money is pulled / added it will show in order flow.

FDAX short term and the FGBL

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FDAX short term and the FGBL