we know that they are 98% corralated. why is that ? is it the same market makers on the two markets...? or other resonses... what make its corrlated to the tick level? is there any a "hadge strategy"...extra? Thanks
i'm starting to find my stride trading the dollar. it is easier, i didn't believe it at first racking up the pips is getting easier every day
because we live in a global economy and hence, when some one is fucked up pretty bad the other one is taking it in the ass quite violently. or at least 98% of time. there are no market makers in the DAX or ES fut, just ibanks, hedge funds and retail traders trying to knock themselves out.
I agree , the correlation is huge you just have to look to resistence and support it's always the same.. The correlation between S&P, Nasdaq and Dax is close to 100 %. Cheers.
Do you know the futures symbol for the DAX, Also when trading the ES S&P futures overnight, is it prudent to watch the Dax in relation to trading the S&P futures during the globex session (non market US hours)
Most brokers have different symbols from one broker to the next broker for the DAX futures. Simply, there's no international standard. It's only prudent to watch both DAX futures and Emini ES futures together if your strategy depends on it. Thus, I've learned if someone ask that question the way you just did...most likely it's not prudent for them to watch both because they're not using a strategy that's dependent upon both. Yet, if you're going to design a correlation strategy for trading the DAX futures...I would start first with the DAX Index, DJ EuroStoxx50 futures, FTSE-100 futures and CAC-40 futures prior to using the Emini ES futures. However, if you're going to design a correlation strategy for trading the Emini ES futures...I would start first with the S&P 500 Index, CME Emini NQ futures, mini-sized Dow YM futures and ICE Russell Emini TF futures prior to using the DAX futures. There's a few old threads here at ET (you got to use ET search link) that gets into some correlation stuff used by different traders. However, I was under the impression that some of those correlation traders were doing some sort'uv spread trading. Mark
I was only concearned about DAX for the globex overnight session when US markets are closed. Because I base my ES trading on the NYSE TICK indicator and VIX on multiple time frame charts of ES with moving averages. To get to the point, When US Market hours are not in session The NYSE TICK and VIX indicator cannot be used since they are solely US market indicators during US market hours. This being said I have no strategy for trading ES during non-market US hours, since my strategy trading ES only works during US market hours.....There seems to be very good trading for ES during the 3AM european open untill 9:30 AM us open. I am trying to find something like the DAX or price level actions to base ES Globex trading untill the US markets open...Cheers