Gapping and trading times - futures io
futures io futures trading



Gapping and trading times


Discussion in Traders Hideout

Updated
      Top Posters
    1. looks_one grausch with 3 posts (6 thanks)
    2. looks_two xplorer with 3 posts (2 thanks)
    3. looks_3 choke35 with 3 posts (7 thanks)
    4. looks_4 Quick Summary with 1 posts (0 thanks)
      Best Posters
    1. looks_one choke35 with 2.3 thanks per post
    2. looks_two grausch with 2 thanks per post
    3. looks_3 Grantx with 1 thanks per post
    4. looks_4 xplorer with 0.7 thanks per post
    1. trending_up 1,364 views
    2. thumb_up 16 thanks given
    3. group 1 followers
    1. forum 10 posts
    2. attach_file 2 attachments




Welcome to futures io: the largest futures trading community on the planet, with well over 125,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
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

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

 
Search this Thread
 

Gapping and trading times

(login for full post details)
  #1 (permalink)
Legendary no drama Llama
Reading UK
 
Experience: None
 
Posts: 1,782 since Oct 2016
Thanks: 2,801 given, 5,004 received

I have two questions:

1. Looking at CL 02-17 for the past year and can see a lot of gapping. Is this common in futures markets?

2. There is this big daily event in the US where a bell goes ding and the markets are open. Are these traders in America only allowed to trade certain hours, but the exchanges still stay open for the rest of the world to trade overnight?

Thanks.

Visit my futures io Trade Journal Started this thread Reply With Quote
The following user says Thank You to Grantx for this post:

Journal Challenge February 2021 results (so far):
Competing for $1500 in prizes from Topstep
looks_oneSBtrader82 's Trading Journalby SBtrader82
(135 thanks from 28 posts)
looks_twoJust BEING a Trader: Letting Go!!by iqgod
(103 thanks from 27 posts)
looks_3Wisdom is Emptinessby Mtype
(65 thanks from 23 posts)
looks_4Deetee’s DAX Trading Journal (time based)by Deetee
(30 thanks from 14 posts)
looks_5Journal for peanuts1956by peanuts1956
(23 thanks from 13 posts)
 
 
(login for full post details)
  #3 (permalink)
Germany
 
Experience: Intermediate
Platform: Other
Trading: ES, YM, 6E
 
Posts: 2,668 since Feb 2013
Thanks: 5,099 given, 6,550 received



Grantx View Post
I have two questions:

1. Looking at CL 02-17 for the past year and can see a lot of gapping. Is this common in futures markets?

2. There is this big daily event in the US where a bell goes ding and the markets are open. Are these traders in America only allowed to trade certain hours, but the exchanges still stay open for the rest of the world to trade overnight?

Thanks.

News gaps aside, most about your impression results from incorrectly not choosing the respective front months for your check.
E.g.: Looking at CL 02-17 from a perspective when it wasn't the front month is relatively pointless (unless you are a producer
or an intermediary) since the front month has the volume - and continuous pricing with it.

Reply With Quote
The following 3 users say Thank You to choke35 for this post:
 
(login for full post details)
  #4 (permalink)
Luxembourg, Luxembourg
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Stocks
 
Posts: 491 since May 2012
Thanks: 1,641 given, 1,149 received


Grantx View Post
I have two questions:

1. Looking at CL 02-17 for the past year and can see a lot of gapping. Is this common in futures markets?

2. There is this big daily event in the US where a bell goes ding and the markets are open. Are these traders in America only allowed to trade certain hours, but the exchanges still stay open for the rest of the world to trade overnight?

Thanks.

You could be looking at the effects of contango (Contango Definition | Investopedia) or backwardation (Backwardation Definition | Investopedia). However, these will only be present whenever a contract rolls into a new contract. Continuous contracts will remove the effect of both, but it will mean that past prices are adjusted to current levels. In extreme cases that can mean that past prices are shown as negative.

I suspect however that you are referring to the gaps on the daily open. You probably are only looking at the RTH (regular trading hours) data. The more popular futures contracts can also be traded during ETH (extended trading hours). If you ignore the ETH data, then your graph will look like it has gaps. With Interactive Brokers I needed to enable ETH data in order to remove the gaps from my graphs.

Some more data regarding RTH and ETH can be found here: CBOE Extended Trading Hours

Reply With Quote
The following 4 users say Thank You to grausch for this post:
 
(login for full post details)
  #5 (permalink)
Site Moderator
London UK
 
Experience: Beginner
Platform: CQG
Broker: S5
Trading: Futures
 
xplorer's Avatar
 
Posts: 5,291 since Sep 2015
Thanks: 13,319 given, 12,578 received


grausch View Post
You could be looking at the effects of contango (Contango Definition | Investopedia) or backwardation (Backwardation Definition | Investopedia). However, these will only be present whenever a contract rolls into a new contract. Continuous contracts will remove the effect of both, but it will mean that past prices are adjusted to current levels. In extreme cases that can mean that past prices are shown as negative.

I suspect however that you are referring to the gaps on the daily open. You probably are only looking at the RTH (regular trading hours) data. The more popular futures contracts can also be traded during ETH (extended trading hours). If you ignore the ETH data, then your graph will look like it has gaps. With Interactive Brokers I needed to enable ETH data in order to remove the gaps from my graphs.

Some more data regarding RTH and ETH can be found here: CBOE Extended Trading Hours

Thanks to both choke35 and grausch for this. I guess the question is, how do we get NT to show a continuous contract view that takes into account of ETH as well, so that the daily bars look like this?



Even by following Fat Tail's instructions a continuous contract daily view on NT still looks like this



I understand that the reasons behind it are because NT 7 daily bars look just at RTH. Thread here



But even if I look at a bar of 1440 mins I get the gaps. What gives?

Reply With Quote
The following user says Thank You to xplorer for this post:
 
(login for full post details)
  #6 (permalink)
Luxembourg, Luxembourg
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Stocks
 
Posts: 491 since May 2012
Thanks: 1,641 given, 1,149 received


xplorer View Post
Thanks to both choke35 and grausch for this. I guess the question is, how do we get NT to show a continuous contract view that takes into account of ETH as well, so that the daily bars look like this?

Can't help with the other queries, but the answer to continuous contracts in NT7 is here -

Reply With Quote
The following user says Thank You to grausch for this post:
 
(login for full post details)
  #7 (permalink)
Site Moderator
London UK
 
Experience: Beginner
Platform: CQG
Broker: S5
Trading: Futures
 
xplorer's Avatar
 
Posts: 5,291 since Sep 2015
Thanks: 13,319 given, 12,578 received


grausch View Post
Can't help with the other queries, but the answer to continuous contracts in NT7 is here -

Thanks grausch - I had tried using ##-## contract - and yet it shows gaps.

Reply With Quote
 
(login for full post details)
  #8 (permalink)
Luxembourg, Luxembourg
 
Experience: Advanced
Platform: TWS
Broker: Interactive Brokers
Trading: Stocks
 
Posts: 491 since May 2012
Thanks: 1,641 given, 1,149 received


xplorer View Post
Thanks grausch - I had tried using ##-## contract - and yet it shows gaps.

Like I said, this only shows the continuous contract. I am not sure how to enable ETH trading in Ninja.

Reply With Quote
The following user says Thank You to grausch for this post:
 
(login for full post details)
  #9 (permalink)
Germany
 
Experience: Intermediate
Platform: Other
Trading: ES, YM, 6E
 
Posts: 2,668 since Feb 2013
Thanks: 5,099 given, 6,550 received


xplorer View Post
Thanks grausch - I had tried using ##-## contract - and yet it shows gaps.

If a continuous contract still shows so many gaps (holidays and weekends aside),
this looks more like a problem with your Session Templates. Before creating the ##-##
try to make sure that the individual contracts are based on the ETH.

NinjaTrader Version 7

P.S.: In order to avoid any DST issues, I'm using local time settings for each asset in the meantime,
e.g. CST for the ES, CET for the FGBL, or ET when I'm watching the CL.

Reply With Quote
The following 2 users say Thank You to choke35 for this post:
 
(login for full post details)
  #10 (permalink)
Site Moderator
London UK
 
Experience: Beginner
Platform: CQG
Broker: S5
Trading: Futures
 
xplorer's Avatar
 
Posts: 5,291 since Sep 2015
Thanks: 13,319 given, 12,578 received



choke35 View Post
If a continuous contract still shows so many gaps (holidays and weekends aside),
this looks more like a problem with your Session Templates. Before creating the ##-##
try to make sure that the individual contracts are based on the ETH.

NinjaTrader Version 7

P.S.: In order to avoid any DST issues, I'm using local time settings for each asset in the meantime,
e.g. CST for the ES, CET for the FGBL, or ET when I'm watching the CL.

Thanks choke

Check out this thread

In there I asked this very question. Official answer from NinjaTrader is that simply when looking for a daily bar chart ETH are not used, instead they use RTH.

They changed that on NT8.


Unless we're talking about different things?

Reply With Quote
The following user says Thank You to xplorer for this post:
 
(login for full post details)
  #11 (permalink)
Germany
 
Experience: Intermediate
Platform: Other
Trading: ES, YM, 6E
 
Posts: 2,668 since Feb 2013
Thanks: 5,099 given, 6,550 received


xplorer View Post
Thanks choke

Check out this thread

In there I asked this very question. Official answer from NinjaTrader is that simply when looking for a daily bar chart ETH are not used, instead they use RTH.

They changed that on NT8.


Unless we're talking about different things?

Ah, I see. Missed out on that.

(With hindsight one more reason to be content with switching the bulk of my daily routine to SC last summer )

Reply With Quote
The following 2 users say Thank You to choke35 for this post:


futures io Trading Community Traders Hideout > Gapping and trading times


Last Updated on January 18, 2017


Upcoming Webinars and Events
 

NinjaTrader Indicator Challenge!

Ongoing
 

Journal Challenge w/$1500 prizes from Topstep!

February
 

Identifying Setups & Targets Using Profile Charts w/Trevor & Tradovate

Feb 25
 

Battlestations! Show us your trading desk - $1,500 in prizes!

March
     



Copyright © 2021 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