Dear Fellow Trading Brethren, I wrote a post recently regarding global exchange trading, namely the ES. Ever since, I got many questions on the subject. I thought it would be a good opportunity to start a thread on the subject of GLOBEX trading in today's markets - What it's like, who does it and how they do it... Personally, I live in Western Australia, where the time difference is a whopping EST +12. However, I don't see it as a disadvantage at all - I love my time schedule (I can sleep in late everyday haha) and I can take care of my other businesses in the daytime (I started by building a business during the daytime while trading all night long!). It's also great to have the exact 12+ time, making the time difference calculation pretty easy. My god isn't Trading difficult enough the way it is? Besides, I think I'm better off than most Americans, who have to get up between 2:00 am and 6:00 am (except for ppl living in NY, of course). While these days I tend to monitor the XTO, XJO, XKO (S&P100, 200, 300 ; Sydney Futures) during the local daytime (I have alerts that call me into the office whenever a nice retracement level is hit), I also really like trading the ES globex between 1:00-9:15 EST. Most trades happen from 2:30-3:00 onwards (little liquidity before that), right till the U.S Open. I'm already long into the futures when everyone is still trying to analyze what's going on while rubbing sleep from their eyes. I define this as another "edge" What I love about the Globex session is the awesome smooth trends / waves coupled with very low-range bars and little noise, making ultra-tight-stop reversal plays from retracements a great opportunity. Also, you're not competing with so many pro's and head-fakers :eek: I tend to look at 2,3,5M charts. I really like playing the 5-min reversal bars (the "spiky" things). Just look at the last few day's globex sessions and you'll know what I mean with playing pivots. I also like to be long/short right from the open, to play the subsequent morning gap closures (pretty reliable, particularly if MA's, ret. levels and fib circles etc support the CT trade. Many days, I will have already made several points when most ES "players" are still playing in dreamland Well, everybody who can speak from experience(s) with GLOBEX and / or lives in a place more conducive to this unfair behaviour (Europe, Asia), is very welcome to contribute and share. I will be happy to answer questions, and be even happier to hear how you do it and your experiences. I'm sure I'll be able to learn a lot here... And please, as always, keep the thread clean and don't deviate from the subject. Many Thanks. Yours Faithfully, ~The Scientist
My Dearest Brother Scientist, Thank you for a most interesting topic... your discussion of what I term "time zone segregation" is indeed an interesting one, and can have significant (and indeed beneficial) lifestyle ramifications... I have touched upon the lifestyle ramifications of time zone segregation elsewhere: http://www.elitetrader.com/vb/showthread.php?s=&postid=277168&highlight=time+zone#post277168 Your post above serves to go beyond lifestyle ramifications, and exemplifies the strategic advantages (via Globex exploitation) of time zone segregation -- a potential edge... With the genre of love that can only be experienced amongst the trading fraternity... Your Brother, Candle
You kick ass, Scientist. Your posts are always intelligent, informative, and well-thought out. Keep it comin'.
I second that. I've been a student of Scientist (and a few others on this great ET board) and they don't even know it. Many thanks to all of you.
I am in total agreement on this... moreover, the only way to participate in this globex action (i.e. to participate in the formation of the gap without assuming any "overnight" risk) is to be an insomniac in New York or to exploit Globex by being in an advantageous time zone... For those who wish to understand that an "edge" need not be within the direct control of the trader, Brother Scientist has provided an excellent example...
Hi Scientist, The UK is a great place to trade Globex from. With 5 hour time difference, and European instruments to guide through the morning while everyone in the US is still asleep, and plenty of time to pick up some good moves well before the open. If I don't want to even look, I get the mornings completely free to shop and lunch etc. until 1.30-2.00ish p.m. and finished work by 9.00 ish p.m. as well. Works really well as a life style too. Many is the time I've picked up a long position in (my) midmorning or lunchtime and held through a trend day for maybe 4 or 5 points more than I could have gotten in normal trading hours, or opened in the premarket and closed/reversed soon after the open for an extra kick start to the day. Works for me best Natalie
What shall I say ... AWESOME! You certainly are in the best timezone hey! GMT= Great Median Time! If I'd known, I'd never have left Europe... You must have a pretty cool life with that schedule Sincerely, ~The Scientist