Jigsaw Trading's Peter Davies - Ask Me Anything (AMA) - Trading Reviews and Vendors | futures io social day trading
futures io futures trading


Jigsaw Trading's Peter Davies - Ask Me Anything (AMA)
Updated: Views / Replies:89,164 / 398
Created: by Big Mike Attachments:72

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
 72  
 
Thread Tools Search this Thread
 

Jigsaw Trading's Peter Davies - Ask Me Anything (AMA)

  #81 (permalink)
Market Wizard
Bangkok
 
Futures Experience: Intermediate
Platform: MultiCharts.NET, S5, Ninj
Broker/Data: AMP, S5, IB
Favorite Futures: ES
 
DionysusToast's Avatar
 
Posts: 2,567 since Nov 2010
Thanks: 760 given, 8,145 received
Forum Reputation: Legendary


tinkug112 View Post
This question had been puzzling me for quiet some time.
Note: I trade Indian index only excuse me if some errors

1> I understand Index is derived from set of stock. Example ES --> Citigroup, Microsoft so on.
Index will change when these stock prices change. How can Bids/Ask prices in Index futures effect index future price ?

2> Why do correlated instruments move with such precision (ES,NQ). Even if some diversion is seen for some time, they catch very soon.


The index itself is separate from the futures instrument that is derived from that index (hence it's a derivative).

With ES - you have
- the stocks
- options on the stocks (also derivatives)
- the ETF SPY
- Options on the ETF SPY
- Futures options on the ES Futures

The index itself isn't tradable - it's just a number with a set of rules as to how that number is derived. There's a company that maintains that index.

The index can't be traded but the stocks can and all the above derivatives can. The question that will drive you half insane is "which is the tail and which is the dog?"

If the above isn't enough, treasuries and currencies also have relationships with the above too.

Stat Arb strategies exist to take advantage of mis-pricing between the various instruments, so they are kept in line but there is never a single, clear leader all the time. If there was, we'd just watch that move first and trade the lagger.

To take into account all of the above before you place a trade would give you analysis paralysis. So my take on it is you trade an instrument primarily based on the information from that instrument. Then secondary, you watch market internals, related instruments for backup.

Correlations break down too - some short term and some long term. NQ is tech stocks - they can be doing well if the overall market is performing poorly.

One of the things I tell people is to not fade all icebergs - an iceberg in front of a one way market could just be stat arb and so will have no directional impact. On the other hand an iceberg in a pullback may also be stat arb but it'll still spook people out of countertrend positions and hence will still have directional impact.

I try not to think too hard about all of this to be honest.

If you have any questions about the products or services provided, please send me a Private Message or use the futures.io "Ask Me Anything" thread
Reply With Quote
The following 3 users say Thank You to DionysusToast for this post:
 
  #82 (permalink)
Elite Member
Vizag+india
 
Futures Experience: Intermediate
Platform: NinjaTrader
Favorite Futures: Nifty
 
tinkug112's Avatar
 
Posts: 89 since May 2012
Thanks: 110 given, 87 received

Thanks Peter,
"I try not to think too hard about all of this to be honest"
Understand what you said.
Have a reasonable success with Tape. Wanted to make sure approach is correct.

Reply With Quote
 
  #83 (permalink)
Elite Member
Vizag+india
 
Futures Experience: Intermediate
Platform: NinjaTrader
Favorite Futures: Nifty
 
tinkug112's Avatar
 
Posts: 89 since May 2012
Thanks: 110 given, 87 received



FalseProphets View Post
This is a thinking man's/woman's question.
All derivative instruments generally have a few banks who have been charged with arbitrage responsibility. The intention is to keep indices, ETFs, options in line with the underlying basket of assets. I would advise you read some white papers on ETFs available online to see how this done.

Hi can you point to one white paper on arbitrage responsibility please ..

Reply With Quote
 
  #84 (permalink)
Trading Apprentice
Toledo, OH
 
Futures Experience: Advanced
Platform: NinjaTrader, proprietary API for TWS
Favorite Futures: NQ, YM, ES, FOREX
 
Posts: 41 since Nov 2012
Thanks: 16 given, 44 received

Be resourceful..

Step 1. Access Google Scholar or Thomson Reuters or Bloomberg etc. etc.
Step2. Search for "ETF arbitrage"
Step 3. Mind=Blown!

Tip: some intellectual works online cost money!

Reply With Quote
The following user says Thank You to FalseProphets for this post:
 
  #85 (permalink)
Elite Member
Hong Kong
 
Futures Experience: Intermediate
Platform: NinjaTrader, TWS
Broker/Data: IB/Kinetick
Favorite Futures: ES
 
Posts: 233 since Jan 2012
Thanks: 130 given, 305 received


tinkug112 View Post
Hi can you point to one white paper on arbitrage responsibility please ..

I would recommend this book Trading & Exchanges: Market Microstructure for Practitioners for detailed and understandable discussion on arbitrage and anything else related to trading. A real goldmine of a book.

Price gone up $20 since I bought it 2 months ago, but hey, still just less than 2 ES points for a book that will save you much more in the short term. But being 600 pages long it might take a little longer than 'short term' to get through it all. Fantastic discussions of all kinds of traders inside, including the games played.

Richard
Hong Kong
Reply With Quote
The following 3 users say Thank You to RichardHK for this post:
 
  #86 (permalink)
Elite Member
Saratoga, NY USA
 
Futures Experience: Intermediate
Platform: NinjaTrader
Favorite Futures: CL, GC
 
Posts: 377 since Aug 2010
Thanks: 141 given, 790 received

RE: TPO Session Template and/or settings...

Greetings DT....

I'm struggling getting my TPO chart to look like yours.
Is or would it be possible to send me template and/or post screen shots of your settings?

Much appreciated and respect what you do for the futures.io (formerly BMT) community.

Mike S.

Reply With Quote
 
  #87 (permalink)
Market Wizard
Bangkok
 
Futures Experience: Intermediate
Platform: MultiCharts.NET, S5, Ninj
Broker/Data: AMP, S5, IB
Favorite Futures: ES
 
DionysusToast's Avatar
 
Posts: 2,567 since Nov 2010
Thanks: 760 given, 8,145 received
Forum Reputation: Legendary


msull35706 View Post
Greetings DT....

I'm struggling getting my TPO chart to look like yours.
Is or would it be possible to send me template and/or post screen shots of your settings?

Much appreciated and respect what you do for the futures.io (formerly BMT) community.

Mike S.

Sure Mike - for my daily profiles - 1 profile for overnight session, 1 profile for pit session

Step 1 - set up a split session profile (I use 16:15 as end time - when the stocks close).

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


Step 2 - chart settings

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


Step 3 - Profile Settings

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

If you have any questions about the products or services provided, please send me a Private Message or use the futures.io "Ask Me Anything" thread
Reply With Quote
The following user says Thank You to DionysusToast for this post:
 
  #88 (permalink)
Elite Member
Columbus, OH
 
Futures Experience: None
Platform: NT 8, TOS
Favorite Futures: ES
 
Silvester17's Avatar
 
Posts: 3,319 since Aug 2009
Thanks: 4,558 given, 10,246 received


DionysusToast View Post
Sure Mike - for my daily profiles - 1 profile for overnight session, 1 profile for pit session

Step 1 - set up a split session profile (I use 16:15 as end time - when the stocks close).

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


this is a strange looking session template

3 things could be changed:

1. on sunday the market opens at 6:00 pm eastern time, not 4:30

2. the overnight session is missing 1 minute when you set "end time" to 9:29. better would be 9:30

3. as a general rule, I would always use exchange time for the session templates. in the case of cme, it would be central time.

Reply With Quote
The following 3 users say Thank You to Silvester17 for this post:
 
  #89 (permalink)
Market Wizard
Bangkok
 
Futures Experience: Intermediate
Platform: MultiCharts.NET, S5, Ninj
Broker/Data: AMP, S5, IB
Favorite Futures: ES
 
DionysusToast's Avatar
 
Posts: 2,567 since Nov 2010
Thanks: 760 given, 8,145 received
Forum Reputation: Legendary

Weekly Profile

Chart

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


Indicator

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).


Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

If you have any questions about the products or services provided, please send me a Private Message or use the futures.io "Ask Me Anything" thread
Reply With Quote
The following user says Thank You to DionysusToast for this post:
 
  #90 (permalink)
Market Wizard
Bangkok
 
Futures Experience: Intermediate
Platform: MultiCharts.NET, S5, Ninj
Broker/Data: AMP, S5, IB
Favorite Futures: ES
 
DionysusToast's Avatar
 
Posts: 2,567 since Nov 2010
Thanks: 760 given, 8,145 received
Forum Reputation: Legendary



Silvester17 View Post
this is a strange looking session template

3 things could be changed:

1. on sunday the market opens at 6:00 pm eastern time, not 4:30

2. the overnight session is missing 1 minute when you set "end time" to 9:29. better would be 9:30

3. as a general rule, I would always use exchange time for the session templates. in the case of cme, it would be central time.

Thanks

Comment 2 - there is no missing minute when running this real time. I've never tried running 9:30 as start and end time but the above certainly doesn't stop at 9:29 when using this real time.

If you have any questions about the products or services provided, please send me a Private Message or use the futures.io "Ask Me Anything" thread
Reply With Quote
The following user says Thank You to DionysusToast for this post:

Reply



futures io > > > Jigsaw Trading's Peter Davies - Ask Me Anything (AMA)

Thread Tools Search this Thread
Search this Thread:

Advanced Search



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

Battlestations: Show us your trading desks and win $750 in prizes

August
 

Ask Me Anything (AMA) w/Rod Casilli @ Collective2

Aug 23
 

Prototyping Python Strategies (part 3, Live Trading) w/Ran Aroussi [1PM ET]

Elite only
 

Develop Strategies and Perfect Execution w/Brannigan Barrett @ Axia Futures

Elite only

Introduction to Phillip Capital futures brokerage services

Aug TBD

How Monte Carlo Analysis Can Help Your Trading w/Kevin Davey

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
KJ Trading Systems Kevin Davey - Ask Me Anything (AMA) Big Mike Trading Reviews and Vendors 333 Today 09:41 AM
Jigsaw Trading & RapidTraderPro, www.jigsawtrading.com MWinfrey Trading Reviews and Vendors 237 June 25th, 2017 01:21 PM
DeCarley Trading's Carley Garner (Senior Strategist/Broker) - Ask Me Anything (AMA) Big Mike Reviews of Brokers and Data Feeds 28 June 3rd, 2017 05:49 PM
Spot FX Day Trading: The Jigsaw mokodo Trading Journals 242 November 18th, 2013 04:18 PM
DeCarley Trading's Carley Garner (Senior Strategist/Broker) - Ask Me Anything (AMA) Big Mike Options on Futures 1 March 6th, 2013 06:00 PM


All times are GMT -4. The time now is 11:53 PM.

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 2017-08-18 in 0.08 seconds with 19 queries on phoenix via your IP 23.20.166.142