Asian Timezone -- Another Tradable?

Discussion in 'Trading' started by kiwi_trader, Feb 9, 2008.

  1. I'm trading three things at present ... I like to have 3 because there is enough action that I'm not tempted to create it myself.

    Currently I trade two stock index futures, the aussie SPI and the taiwan index on SGX (STW). I have traded Nikkei but its too correlated with SPI so I dropped it for the larger moves on SPI. I also trade USD.JPY but even with the strong asian component, like most currencies it makes its trending moves during european and us timezones - so I'd like to drop it if I can find something better.

    I used to trade HSI but didn't like the change in nature last August so decided to broaden ... hence three tradables to make up for the action on HSI. HHI is like HSI so its out for me too. I've looked at KOSPI but it often correlates with Nikkei / SPI so it doesn't make a good third.

    I like trading trends and am really enjoying the slower nature of SPI and STW. So, here's my question: can anyone recommend other asiapac markets or another world market active during asiapac timezone (US late afternoon and evening). Preferably it shouldn't correlate too much with SPI/Nikkei.

    Thoughts:

    On HKFE:
    HB1 1 MONTH HIBOR INTEREST RATE HB1 HKD
    HB3 3 MONTH HIBOR INTEREST RATE HB3 HKD
    EFN 3 YEAR EXCHANGE FUND NOTE EFN HKD

    On SGX:
    SEY EUROYEN (TIBOR) INDEX EY JPY
    XINA50 FTSE/XINHUA CHINA A50 CN USD
    SSB SGX 5 YEAR SINGAPORE GOVERNMENT BOND INDEX SSB SGD
    NIFTY S&P CNX NIFTY INDEX IN USD
    SGB SGX MINI JGB INDEX JB JPY

    On SNFE:
    XT 10 YEAR TREASURY BOND 6% XT AUD
    YT 3 YEAR TREASURY BOND 6% YT AUD
    IR 90 DAY BILLS IR AUD
     
  2. You could consider the Thai Futures Exchange - got up to a few thousand contracts a day now.
     
  3. KiwiRoo

    KiwiRoo

    Mate, have you checked out FTSE and the DAX? You’ll be trading at your dinner table, but the hour isn’t too bad (I’m assuming you’re in NZ). I think you’ll enjoy FTSE market as it is quite slow moving like the SPI. The DAX on the other hand is a wild horse on the loose. If you like big moves, wide ranging, fast action then the DAX is it. I don’t trade these two markets but have only studied them briefly, so can’t go much further describing their character.

    Good trading,
    KR
     
  4. Thanks mokwit, kiwiroo,

    Will look at thai. Don't want to slip to Europe (realize now that thats a problem with the nifty as well).

    Any other thoughts?
     
  5. Johno

    Johno

    Hi Kiwi,
    Could you please expand on your comments regarding asian market correlations. I currently trade the FTSE but find the trading hours since daylight saving, 7 pm- 4.30 am on the OZ east coast, quite difficult due to other business commitments.
    Any thoughts that you or other traders may wish to share would be appreciated.

    Best Regards

    Johno
     
  6. SPI Has some quite distinct times for moves/reversals. Too many exchange outings. In scalping timeframe beware of people taking advantage of its thinness - or recognise the game and go with it - but tricky.
    SGXNK Can be very inactive/non volatile at times, but a really nice contract when market is moving. Best margin:tick ratio and lowest intraday margin ($1500 when I was active probably more now).
    KOSPI Like a faster more volatile Nikkei High intraday and O/N margins ($16,000). Deep ITM and OTM options are quoted. Locals trade the options like a future ~ $1 tick
    HSI Chinese Govt making statements to deliberately wrong foot people. Can move 2000 points in a day - 300 used to be a wild day. Try the mini as the volatility makes it worthwile/less risky than full size. No quotes for deep ITM options - beware.
    STW Clear technical patterns seem to play out well. Beware of manipulation as its thinness can mean a big fast move.
    Mini JGB - Wide spread. Tracks full size with a spread markup for any kind of size.
    Thai futures - Most of the volume is market makers trading between themselves to give the apearance of volume. Spreads can be wide, astronomical on the options.
     
  7. ganesh6

    ganesh6

    mockwit, which one is the best one out of all the futures you mentioned above. Thanks
     
  8. Best for what? Depends what you want/want to do. SGXNK is probably the best compromise between all.
     
  9. Johno

    Johno

    Hi Mokwit,
    I used to trade the SPI before it went to screens- mid to late 90s, it had many nasty habits then and aparently still does! The other markets mentioned also seem to be a barrel of laughs!
     
  10. All of the markets are tradable and are manipulated to some extent. Personally I don't mind manipulation because its always done with a purpose (to give some people an opportunity for profit) so it can be exploited if you watch for it and understand it when it's there. I often wonder if a pure market would be any fun at all --- but then I spent 3 years trading HSI.

    I like STW and SPI for good range and clean signals. Nikkei is much deeper (and you have 3 size choices) but the range is sometimes irritatingly small.

    Regarding correlation: the tide for them all tends to rise at the same time. I think part of the problem for me is that I perceive correlation because its their some of the time and I'd be better off trading them all as independent ... except to trade harder in the direction of the "all market" tide when its there.
     
    #10     Feb 9, 2008