Favorite Futures: Aussie Bonds, U.S. Bonds, Emini ES, SPI, Nikkei, Yen, Euro, Gold, Oil, Fuck the Dax
Posts: 4 since Oct 2016
Thanks: 0 given,
Yes I trade it but I hedge it with the S&P500 overnight. Also known as the 'spi-mini' spread. I've done that spread for about 4 years now.
Just a word of advice, my prop firm had "Australia's biggest spi day trader" in the SPI and he gave back his limits a few years ago. I think he recently got them back again but let me tell you, it took a lot of heart out of those who made their living on that from 2006-2011. We also had a guy who owned a few ferraris and used to trade only SPI back on the SFE Floor days in the 70's and 80's... and guess who got crushed in the past few years and ended up retiring?
If you are doing positional trades and trends on it then I guess that's Okay but then again you can trade any market with this nack for trends and breaks or whatever.
Most people who trade the SPI trade it like a complete spastic; a very common trade is to pyramid/martingale after 4pm and see where the ASX200 cash closes at 4:10pm, then try to make your living there. I don't like this type of averaging hard and going all-in so I avoid it.
There are a very, very few number of humans who participate in it outright successfully that I am aware of (every day). If anyone has any advice on what they can share I would love to hear.
The following user says Thank You to s0mmi for this post:
To-date I have mostly been systematic trading on US markets, I wanted to get into discretionary trading but not the midnight variety, been playing with some ideas via SPI CFD's while trading the Mini Nikkei (take a look at that if you don't end up on the SPI).
s0mmi makes a good point about hedging on the S&P 500, biggest difference I have found with our local market compared to US, our day session is very reactionary to over night movement compared to say ES where you can look for tests/re-tests and confirmations of night levels in the day session.
Our market might rip and go after a big US session, or just dry up and consolidate (most frustrating). But often never re-test prior day RTH levels.
I use volume/market profiling and find I have to use both day & night sessions to get a good picture and define my levels, where on ES you can just use RTH only.