do not trade index futres.

Discussion in 'Trading' started by padutrader, Jan 7, 2024.

  1. heispark

    heispark

    Try natural gas futures (/NG). I find it easier for day trading.
     
    #21     Jan 8, 2024
    Primal Trader likes this.
  2. tsfx

    tsfx

    I probably don't understand a lot of things.

    Just logic tells me that when spreads are as tight as they are with SPX then a lot of money is willing to sit on them (bids/asks) all the time. Why though? If it was so much easier to make money elsewhere?


    Sure, attached, last 6 months. My sortino got compromised a lot because i did some manual trades out of boredom, lol. But yeah, i'm all algo now. Check the trade count sheet, you'll see most trades are done with SP500.

    PS. I don't trade futures per se, i trade CFD's for the simple reason i don't have an account big enough. I need 500k+ to start with just 1 MICRO (MES) lot.

    Do you have a performance report on some other asset?


    Wrong, low costs help you in both cases, successful or not. If you lose, you lose slower and have a longer time to learn. If you don't know how to trade then it doesn't matter what market you trade but costs are REAL money. Spread is one thing, slippage is another. You can and do get a lot bigger spikes in, for example, FX market compared to SPX, volatility adjusted. That can be another painful cost if you're on the wrong side.

    And i don't think we even need to mention options spreads...There's massive differences in costs and liquidity between different asset classes.

    6.5months.png smc 6.5months-pnl monthly.png trade count.png
     
    #22     Jan 8, 2024
  3. maxinger

    maxinger

    It is time for you to throw away all your trading books including Al Brook's book into the burning Mount of Doom.

    Then with a clear clean mind, develop your own holy grail.
     
    #23     Jan 8, 2024
    VPhantom, CALLumbus and p0box4 like this.
  4. tsfx

    tsfx

    I think the problem lies in volatility adjustment. You've so used to low vola in the FX market, so perhaps you get frightened with SPX that has 2-3 times the vola.

    Index can't be "noisier", otherwise you'd get constantly free money trading/hedging long gamma.
     
    #24     Jan 8, 2024
    p0box4 likes this.
  5. tsfx

    tsfx

    By fx futures, i assume you only talk about 6E or EUR fx futures. Even that isn't same cost if you adjust with volatility. Just divide the spread with the instrument's daily ATR.

    There are no material differences (well for us retailers, anyway) between fx spot and futs. In fact, if you traded spot with IB, you'd get better spreads than with futures. So, spot is actually better. Not to mention the wide range of pairs you get with spot. Spot has ofc bigger counterparty risk by being OTC, so when there's slippages, they are wider than in futures. In that sense, futs are better.
     
    #25     Jan 8, 2024
    VPhantom likes this.
  6. Good Morning padutrader,

    Be a slave and you will get rich in the futures index market. I'm a slave.
     
    #26     Jan 8, 2024
    Zwaen likes this.
  7. hilmy83

    hilmy83


    "indexes do not move in a direction so it is difficult to trade. you need to deal with constant changes of direction"

    You literally described every market that is out there. You want a market that goes in a straight 45 degree line or in a parabolic move?

    Maybe have @SimpleMeLike teach you. Seem like he's doing better by not complicating things.
     
    #27     Jan 8, 2024
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  8. Pekelo

    Pekelo

    Thus God has invented Bollinger bands.
     
    #28     Jan 8, 2024
    beginner66 likes this.
  9. Good Morning hilmy83,

    Yes, I do not know any market that goes 45 degree line. lol, we all wish.

    Yes, correct. Best to not complicate things and be very very simple.
     
    #29     Jan 8, 2024
  10. SunTrader

    SunTrader

    Doing that is investing. Traders trade .... up and down.
     
    #30     Jan 8, 2024