bonds easier than index?

Discussion in 'Trading' started by ADX_trader, Jun 26, 2003.

  1. Mark Cook said trading bonds futures is easier for beginners than the index. Does anyone have the same (or opposite) feeling? Did anyone switch from index to bonds or vice versa?
  2. What index?

    Stock indices?
  3. Of course! ES, NQ, FTSE or DAX etc.
  4. I've traded both since '88, they both have different characteristics.

    Why is this?

    This is due to a well known concept called "autocorrelation"

    Learn it, live it, profit!


    Dr. Zhivodka
  5. I would not say easier to trade just slower in reversals and such
    which makes it easier to prepare for a trade = easier for a new traders to trade . I believe that it is a good idea to look at both at the same time .
  6. Yes. Among the bonds futures, the ZF is the slowest and the ZB can be quite volatile. Do you think it is better to start with ZF first?
  7. I've traded 30yr bonds and sp500 since 1993 and I can honesty say that trading the 30yr bonds is by far much more comfortable to trade. I wouldn't say its easier to trade than the index futures, but trading the bond futures , you don't get whipped around like you do in the index futures.

    Point value in the 30 yr is $31.25 and you get many intra-day moves to trade off. Usually the dollar price range for 1 contract in the bonds on a daily basis is between $625- 1500. Yesterday the range was $2,593.75!!!

    Btw, the bonds trend much better and have fewer false breakouts than the index futures. fibonacci retracements .382 .500 .618 hit with uncanny frequency on an intraday and daily basis, its really amazing!!! Also the price action follows the pivot support/resistance numbers with amazing accuracy!! Its mind boggling!!! But it happens.

  8. nitro


    Actually, the concept is cross-correlation.

  9. That's what I heard, too. So, if you like to trade the pivot
    and it's associated support and resistance levels, sounds like the bonds
    make a good trading vehicle.
  10. Brother nitro is ET's resident statistician, hehe :D
    #10     Jun 26, 2003