Discussion in 'Financial Futures' started by 1a2b3cppp, Jul 20, 2018.
With such a little normal range I feel like there has to be a way to trade it.
Mr Bone has already answered the question.
I don't day trade ZN, ZB, Eurodollar GE .... due to its tiny day range.
Let the spreaders profit from ZN, ZB GE ....
You can look at Germany bonds like buxl or even Italy bond btp. Its day range is big.
I day trade these bonds frequently.
There are some massive yield curve spread trades being put on - that tends to suppress flat price directional trade movement in the STIRS through 10’s. It’s huge size, it’s relentless at the moment.
For example, if you see ES tanking and there’s 1200 offered on ZN, the offer starts to trade out, there are 250 left and you step out and buy 100, and then another 1,000 joins the almost depleted offer... that type of thing I would imagine gets quite discouraging for an interest rate futures day trader. These curve traders iceberg the shit out of it - they don’t show them all at once.
I dont daytrade ZN also;
+ dont trade/invest in anything like '' ZN i also dont get''LOL Do some tiny cap stocks, that have better moves...........................................
I don't think it makes much sense to not trade ZN due to tiny day ranges tho. It's a highly liquid market and you can make as much money as you want on just 3 or even 2 ticks.
So no, you don't need a 30 tick day range type of market to make money, what you really need is a market that you can understand and get a read from.
I'll take your word on that;
cause i have enough stuff on my plate, I assume you are refering to the derivative . ZN in oil stocks cant make it over $5 LOL except 2009 rocket ship up to 17.777/+........
My point is, does a way to get out with a limit order occur because there are like 1,000 orders at each level and the volume is small. So you would wait forever.
I don't understand your problem or question. For the price to move or change, each contract willing to be traded at each level has to be bought or sold. Price will not move up or down if there are still contracts being offered or bidded.
Besides, the amount of contracts at each level are not necessary contracts that want to be traded. Contracts are being added or pulled all the time.
look at yesterday ZB, ZN vs Germany bond like buxl.
day range for buxl is so much bigger and it's good for day trading.
If you have a well behaved market with a six tic daily trading range - that is a prime candidate for swing trading IMO.
You can trade size on smaller trading ranges, or trade small on big trading ranges. Depends on what suits your personal risk tolerance.
I personally know independent traders who make big money trading Eurodollar Spreads - and those only have maybe a two tic daily trading range depending upon the combination and duration.
You are likely going to build consistency, confidence, and account equity with a mellow behaved market. As you build account equity you increase your sizing. And futures names with modest trading ranges will require less margin than futures products with higher volatility.
And there will be less monthly commissions for a trader paying non-member retail rates. Scalping ES or Bunds or 6E or CL can be very expensive - but your broker will love you.
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