I've been trading for a while. Does anyone have a list that shows how futures markets are related both directly and inversely. One of the most frustrating things in trading is when you go into multiple trades but the markets you are trading are either inversely or directly related.
1) Do mean that most grain futures tend to move in phase with one another? Crude oil, heating oil and gasoline correlate reasonably tight? Precious metals tend to move together? 2) Inverse correlation? The US dollar versus foreign currencies? Some correlations are "proper". Some are merely random. 3) From time to time, it can happen that everything on your statement increases in value. The other side of the coin, all of your positions can decline in value. It's a recurring "outlier" thing. :eek:
Yeah I meant how gold and the dollar are inversely related. Oil and gold are related. For forex this is helpful http://www.mataf.net/en/tools/01-01-correlation in determining how much markets are related. Is there anything that tracks the futures markets showing how similar they are as well.
It seems like all of the commodity markets are related to some degree. I guess because everything is denominated in the dollar. This is kind of a pain trading multiple markets. Are the grains pretty closely related to metals and energy??
I have often wanted a line chart or heat map to track various markets and to identify those times and days one is leading the other... I guess this is not a unique idea and there are probably traders out there that do this and do not talk about it publically much. I know this is a valid way to trade and this would be a method that I am very interested in for the year 2011. But it is a lonely journey and no one is going to help me I know that...I gotta do the time on this method, which means I will prolly never figure it out. Making money is the motivator that drives ☺ ES
That's a good idea. I know I trade technically so I try to find as many markets as I can. The only problem is determining which ones are related and which ones are inversely related.
I am sure I am not unique... But if this is my idea...then lets explore it... I am not a coder or a programmer...But I can test.. I only have Metatrader platforms as my tool...We would need far more extensive packages to test with..so unfortunatley I cannot contribut much. You could call it "Project Out Front"... ES
What time frame is your trading? Day trade, position or swing etc? For day trading, pick one instrument with good intraday range and just trade that. Lot easier than running after several and miss them all.