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Trading: Dax, ES, FX, Gold and Oil but what Bund and Bobl also.
Posts: 106 since Jul 2012
Thanks Given: 108
Thanks Received: 126
Today's trades
1 - ER7ER8 spread 50 lot clip each on initial entry.
2 - ER3ER4 spread 50 lot clip each on initial entry.
3 - ER5ER6 spread 50 lot clip each on initial entry.
4 - ER3ER5ER7 fly 50 lot clip each on initial entry, I didnt manage to get ER5 filled completely for 100 ticks.
Reason for entry
1 - ER7ER8 = good orderflow reading on both pairs.
2 - ER3ER4 = I had good orderflow readings on this pair as well, and made the entry shortly after trade 1.
3 - ER5ER6 = same as trade 2. However I consider myself acting to hasty and lost patience by entering several position too early, and before a news release.
4 - ER3ER5ER7 = after finishing the initial trade reasonably quickly, I saw a good trade opportunity in ER3ER5ER7.
Overall a decent day, however there was a lot of movement during the mid afternoon with any major news release out. Not a 100% sure what cause this, whether it was a technical level or traders adjusting their positions. Either way it was an unusual day, something I wished I had recorded so I could look back at it.
Don't let money control you, control money!
Can you help answer these questions from other members on NexusFi?
Trading: Dax, ES, FX, Gold and Oil but what Bund and Bobl also.
Posts: 106 since Jul 2012
Thanks Given: 108
Thanks Received: 126
Today's trades
1 - ER4ER5 spread 50 lot clip each on initial entry.
2 - ER3ER6 spread 50 lot clip each on initial entry.
3 - ER5ER7 spread 50 lot clip each on initial entry.
4 - ER3ER8 spread 50 lot clip each on initial entry.
5 - ER3ER7 spread 50 lot clip each on initial entry.
6 - ER3ER8 spread 50 lot clip each on initial entry.
Reason for entry
1 - ER4ER5 very thin and volatile market, if that was live trading I wouldn't have traded today. I had a decent opportunity though with good orderflow.
2 - ER3ER6 good trade that turned out bad very quickly. I managed to safe it by readjusting my position, however I didn't close ER6 until late Friday afternoon.
3 - ER5ER7 similar to trade 2, market was good upon initial entry, but quickly changed.
4 - ER3ER8 this was made after the initial volatile movement and I managed to spot a good opportunity that played out well. ER3 took a bit longer to close, however this was a better position in comparison to trade 2 and 3.
5 - ER3ER7 ER3 again was very easy to enter and exit, ER7 took a bit longer and needed one adjustment to make it work in my favour.
6 - ER3ER8 ER3 seem to be a clear favourite today even though it was the contract most out of its usual self. ER8 took some adjusting, however I managed to clear this pretty clear and in profit.
Today was a really strange day for Euribor. It was an extremely thin market with high volatility in comparison to what it usually is. For example ER3 normally moves 3 ticks, sometimes 4 and in the rare case 5. Today it was a 10 tick range. In fact the range in ER3 was bigger then in some of the later months like ER7 and ER8. I had 3 open positions held overnight, which I closed on Friday.
I've heard from a lot of order flow/DOM traders that fixed-income futures is easier to read, it's something I'll have to investigate but my knowledge on these instruments is limited.
How did you learn to trade like this?
Also,
Do you plan to trade your own capital once going live or someone elses?
Hope you don't mind my questions,
Cheers mate.
Turismo
Trading: Dax, ES, FX, Gold and Oil but what Bund and Bobl also.
Posts: 106 since Jul 2012
Thanks Given: 108
Thanks Received: 126
Hi Turismo,
i'm not so sure they're "easier" to read. To me it doesn't make a whole lot of difference, however as with any market you need to understand its natural flow. Trading Euribor is boring in general, but I like it because it gives me profitability. There are a few downsides to trading this market, such as adding to a position in general is not a problem to do, but on the rare days like we had last week where the market is very volatile, it's better not too. So one would need to distinguish before hand whether the conditions for adding are being met. Generally no high news releases and high volatility would be a no go for me. In comparison to Crude or some of the other more volatile markets, I would say yes it's much easier to trade. I think as a trader one would need to understand their strengths and weaknesses. I'm in this market to make money full stop. I don't care about the excitements or fun etc
If I had some money spare I would be trading this already, so I'm currently trying to get backed through the company that has trained me, and then trade whoevers money I will be working for.
You're right, markets are markets. Few different properties, but still the same element.
I'm exclusively trading high volatility markets, because I find that the order flow energy really gives away incoming large momentum jolts and this is my premise for trades. So in a less volatile market, it would be more difficult for me to find that momentum ignition that I find every 10 minutes in the YM, CL, FDAX.
Still, my most profitable time period for trading is the YM from 6AM ET (11AM london) to the US open, when it is generally much slower, lower volatility, and therefore easier to manage trades. Is this the type of market conditions in the eurex stirs? I'm really unfamiliar with this stuff.
Do you use a calendar for high news releases? Or is something like Econoday and ForexFactory good for bond markets too?
Sorry if you are just here to journal and not to educate,
There is a lack of information regarding STIRS on the internet compared to all the other markets,
so many questions!
Trading: Dax, ES, FX, Gold and Oil but what Bund and Bobl also.
Posts: 106 since Jul 2012
Thanks Given: 108
Thanks Received: 126
Hi Turismo,
my apology for my late reply. Just came back from a holiday.
In Euribor there isn't much of that momentum spark, however you still have orders lined up, and you still need to look at it in the same way when looking to place an order. The biggest difference between between our markets are that I'm looking at interest rates, and I'm looking at 6 consecutive contracts all at the same time. This is a very different trading style and approach. I'm looking for small fluctuations in prices seeing that they're all the same future, just a different period. IR are not going to change that much between those 6 contracts, so it's spotting good pairs to make a small trade. It's a form of arbitrage, as spreading in general is.
STIRS is definitely a lot easier to learn and manage because its not so volatile, however it's a very different style/type of trading and one would need to be careful not to make the rookie mistakes from when the things go against you. ie in Euribor I can add to my "losing" position and turn it into a winner, and do it regularly. In most trading cutting a looser is a better solution. This "adding" gives room for bad trading habbits to form if you allow it, especially when there is a bit more volatility, thus making it easier to blow your account. I'm trading the NYSE_Liffe Euribor, not the Eurex, although I could as they should be fairly similar. I couldnt say it would be the same type of market condition, however as Shatz, Bobl and Bund are highly corrolated to Euribor, I would def say those contract can have similar conditions to what you're referring to. Worth to have a look at if you're interested.
As with trading any future roll over dates are important to keep in mind, and all EU related news most def. I'm using FF at the moment as a calender. I haven't used squawks etc, which I'm sure are very handy in trading STIRS. FF doesn't cover it all though for STIRS, but I'm sure most calenders wouldnt cover everything, and we also have news releases outside the calender new releases that effect our trading. So yes you can use FF as I have been, however if you're trading a large fund I would suggest not to solely rely on that and have other things at hand like bloomberg/squawks.
Feel free to ask questions, thats why I participated in the contest in the first place. I know the lack of info available. I guess that's because it's mainly profs that trade STIRS so no need for them to really talk about it. I haven't found any other reason why its the case with STIRS. It also doesn't provide excitement, its a very very boring future to trade, with little to nothing happening most of the time. So not much to really talk about even if you wanted too. I hope this helps answering your questions, if not feel free to ask more or elaborate.
Trading: Dax, ES, FX, Gold and Oil but what Bund and Bobl also.
Posts: 106 since Jul 2012
Thanks Given: 108
Thanks Received: 126
Today's trades
1 - ER3ER4 spread 50 lot clip each.
2 - ER5ER7 spread 50 lot clip each.
Reason for entry
1 - ER3ER4 spread was an early entry with good orderflow readings. No yield curve positioning taking into consideration.
2 - ER5ER7 spread was also showing very good orderflow readings.
I made 2 trades today to get back into the right flow of things after a nice break. I didn't want to jump in doing loads of different trades all at once, but just take it slowly. Overall a decent result of 208 ticks in total.
Trading: Dax, ES, FX, Gold and Oil but what Bund and Bobl also.
Posts: 106 since Jul 2012
Thanks Given: 108
Thanks Received: 126
Didnt have time the last few days to trade as I've had other things to deal with. Today for some reason Euribor isn't available on NYSE_Liffe. On Eurex it is, but stagnend, so not sure what exactly is going on. Will have a look at it today.
Trading: Dax, ES, FX, Gold and Oil but what Bund and Bobl also.
Posts: 106 since Jul 2012
Thanks Given: 108
Thanks Received: 126
Hi CobblersAwls,
Hi, I'm still spreading but as it's been only in sim mode it has been very challenging to get backing, even in the UK. It's like trying to become an F1 racing driver. Most firms want you to trade your own money, or at least put a fair amount of money down (risk bond). If I had this available I would be all up for it, but unfortunately I don't have it available at this time so that leaves me with 3 choices of which 1 is considered not an option. The first choice is to gather the money together, which is the most logical choice to go for. The second choice would be to look for alternative ways of trading, end of day trading, swing trading etc anything one can do and still have a full time job, or the latter which I don't consider a choice is to quit. As I've got a family to look after I had to go for option 1 and 2 at the same time. 1 ultimately as I would like to day trade, and 2 for the period I've now entered into, where I need to go out every day to earn a living via other means other then trading. I'm still brainstorming to see how I can apply what I have learned so far, and mold it into a system that will work for me whilst being in full time employment. I see you're based in London. Are you a full time trader?
