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Ticktaker
 

Registered: Jun 2008
Posts: 246

 

12-10-10 03:45 AM


Quote from cunparis:

I'm surprised so many people said the Bund was not good for trading. Maybe back in 2007 that was the case but I've been trading it for 6 months now and I've been doing well. I trade Bund in the European morning and ES in the US morning and my Bund performance is much better than my ES peformance.

The last poster is right, the bund commission is roughly half that of ES (comparing commission to tick value). Getting half price commissions is huge. Makes it much easier to scalp. I'm not really a scalper but I don't hesitate to scale out if it doesn't move my way.

Here's my bund equity curve since Oct 29 (prior to that I was trading different setups):




A lot of high frequency discretionary traders have moved away from the Bund primarily because the market is dominated by algo's and the short term edge is gone. That is why it's not a good trade for scalpers trading a short time frame.

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cunparis
 

Registered: Oct 2007
Posts: 589

 

12-10-10 06:58 AM


Quote from Ticktaker:

A lot of high frequency discretionary traders have moved away from the Bund primarily because the market is dominated by algo's and the short term edge is gone. That is why it's not a good trade for scalpers trading a short time frame.



Maybe what one sees as a problem is opportunity for someone else? My expectancy is 2 ticks and my equity curve is very smooth. I'm now working on increasing expectancy on my second target.

Maybe I'm subconciously seeing these algos and trading with them. I don't really know. Just know it's working for me.

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Ticktaker
 

Registered: Jun 2008
Posts: 246

 

12-10-10 05:09 PM


Quote from cunparis:

Maybe what one sees as a problem is opportunity for someone else? My expectancy is 2 ticks and my equity curve is very smooth. I'm now working on increasing expectancy on my second target.

Maybe I'm subconciously seeing these algos and trading with them. I don't really know. Just know it's working for me.



It doesn't matter if you subconciously see the algo's. The edge that traders used to have in the Bund was taken away by the algo's. They take away inefficiencies in the market. Now by no means does that mean money can't be made by a discretionary trader...you have to find something new that works. Here is a link that I think may explain things better as the Bund evolved.

http://i-found-my-holygrail.blogspo...rader-paul.html

Paul Rotter alludes to the fact that when US traders took on Eurex, the markets became more difficult to capitalize on. This is from 2005. Right around the time that the talk of algo's really having an effect on the markets was taking place. Not sure where Paul Rotter is today.

I hope this gives some more insight.

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GuyFawkes
 

Registered: Apr 2009
Posts: 182

 

12-10-10 05:11 PM

"algo's... take away inefficiencies in the market"

Hilarious.

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cunparis
 

Registered: Oct 2007
Posts: 589

 

12-10-10 08:12 PM


Quote from Ticktaker:

It doesn't matter if you subconciously see the algo's. The edge that traders used to have in the Bund was taken away by the algo's. They take away inefficiencies in the market. Now by no means does that mean money can't be made by a discretionary trader...you have to find something new that works. Here is a link that I think may explain things better as the Bund evolved.



Isn't this true of all markets? Is there a market that the algos aren't in??

Maybe these algos closed some opportunities and opened others.

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Ticktaker
 

Registered: Jun 2008
Posts: 246

 

12-10-10 08:28 PM

Quote from GuyFawkes on 8-22-10

"Hey treasury traders.-------------------------------------------------------
I asked this question a while back. Got totally ignored and probabaly will again.
I traders at an office of one of the biggest clearers in Chicago and nobody is making money. It's depressing. There are rumors every now and then about people doing well but I'm tempted to believe that it is fiction.
High turnover of traders in a half full office - I can only think that it is down to the sales force being able to attract traders from smaller doomed outfits, that we are not all but empty.
In short it's a highly depressing office.
I am the type of person that has done better in offices where people are making money.
So where are they? Is anyone anywhere situated in a good office?
All I hear is doom and gloom so are there any good stories?
All I hear is stories of someone blowing their brains out once in a while.
& beware because I will follow up on any recommendations because I do want to make a move.
Anybody?"----------------------------------------------------------------------

You're a tool, my dude.

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