I wanted to see if there are any bund bobl traders who have moved into other markets and finding more success in the new market whether it is other fixed income or equity futures markets. If so what other markets have you switched too? Also what makes the new market a better trade for you? I am just wanting to get some ideas from others who have made the jump as I am thinking of doing some exploring. By the way I recently heard that the volume coming out of some of the trading firms in Eurex products has been dropping off a lot. I don't know if it is true or not If it is true it could be due to the changing trading conditions in Eurex or lower volatility but it seems as other traders might be thinking the same thing as me.
When faced with this kind of stuff in the past. I just move out timeframes and started holding. For instance, now I pretty much have to swing the Bund off of 30 min, 120 min charts to find consistent trades. Basically, you have to learn to position trade. Right now it seems everything is dead. I also found a new trading vehicle in the Euro futures on the Merc. It moves day and night. It is the best moving thing out there right now. IMO, the Euro futures is the vehicle for people sick of the crawling fixed income and equity markets. Check out the Eur futures
Do you work at a trading firm? If so how did they feel about you widening out the timeframes because I am assuming you are taking a lot larger stops when trading off a 30 min time frame. You are right about the crawling fixed income. Everyone is fighting over every tic in short term and I think not enough back and forth action to consistently trade in that time frame, but that is just my opinion. I am sure some people are having some consistent success with it. Although with the flipping going on in eurex and seeing what is printing it makes it pretty apparent that there are not a lot of traders leaving bids and offers in book to actually be traded because the traded size is usually so small. Thanks for the tip on the euro. They have been moving around a lot the last couple of week.
"Check out the Eur futures" TGM: How do you like the execution system on the the Euro fut? Is it cheap enuf, or do you have to have a membership for it to be cost efective? It's an intriguing product, and I'm sick of the stinkin' bund after all of these years!! Success, CB
If you've come from fixed income, the Euro (or for that matter any FX) will make your hair stand on end. :eek: CB - Com costs don't seem an issue when something gives 20-70 pip moves like that, but I guess it all adds up at the end of the day.
I no longer work at a trading firm. However, I did trade for a couple desks. They let me do whatever I wanted. I would not trade for a desk run by people who dont know that to make money ---sometimes you got to hold and/or move other products into the lineup.
Globex used to SUCK. These days it works ok. Commissions are more expensive at CME in general. Even with a lease. However, I have found that the Euro futures moves so well---it does not matter. You can 6 bucks and still make money. It makes 5 tick moves all day and all night ----and usually a handful of 15-30 to 40 or more tick moves as well. If you can trade the trend days in fixed income ---you will do fine here. After all, the bund moves off of the Euro anyhow. If you are doing enough volume ---you can drop your costs considerably by leasing a seat. It is simple and only takes a few days time.
I find that the EURO is currently trading like fixed income used to trade! It is not that the EURO is moving that well---but that the other markets are dead for the moment! Of course, the Euro is moving like a beast. But if something isn't moving ---we cant make no dough! Good point on costs. I went and took a piss last night and came back a few minutes later and was up 10 ticks. Very nice continuation in all the moves. Everything works in a market that is moving well. Forget reading the book. Just go with the flow.
vol cycles come & go in ec just like everything else - but maybe more so in ec. last few days have been great - so today is likely to be lame. a load of spoo scalpers sit round in ec too - this will increase over time with you lot coming over as well. i would look at other fx futures for longevity. bp & yen particularly. the liquidity may not be like ec, but what you see on the inside b/a is more real.