Registered: Apr 2002
11-21-09 04:45 AM
I have clients trading my models with weighted spread combinations amongst the Russell, S&P, NASDAQ, FTSE, DAX, NIKKEI, DJ EuroStoxx, and CAC futures - as well as about 50 ETFs. I think I'm up to about 175 highly correlated combinations. I have clients complaining about running out of monitor space on quad monitors with four 25" monitors, and having to set audible alarm levels to keep track of it all.
You don't have to just take directional risk with these products - they are excellent relative value tools. I know that alot of guys will spread the mini-Dow vs. S&P mini, the DAX vs. the DJ EuroStoxx, etc. etc..
But listen, there's so much more to it than that. Learn to build your own markets - be creative! Tilt the risk/reward skew in your favor with statistics and good correlation studies. You can trade 750 XLF versus 100 SPY. You can trade 1 Kospi 200 future versus 1 FTSE future. Sky's the limit. You don't have to day trade or scalp the flat price directional ES like a gazillion other humans and try to make sense of candle formations, wave counts, Gann lines, chart patterns and all that stuff.
Try to Zig when everybody else is Zagging, for God's sake. I have been trading full-time and been positive for 17 straight years. Most of the successful traders I know who have banked some decent coin are trading some sort spread combination, and it's usually not a terribly obvious one. Judging by the content of most of these posts on ET, too many of you are chasing a poor risk/reward skew. Most of you guys are going about this the wrong way.
Spread, Relative Value, and Correlation Trading Instruction from a Professional Trader. The only thing that matters are Clients making money IN LIVE MARKETS. Why not interview my clients for yourself on an independent basis. My typical client is an outright directional trader looking to pick up an industry-recognized specialty technique. http://www.spreadprofessor.com