Newbie HFT setup - basic questions

Discussion in 'Index Futures' started by damballa, Nov 19, 2010.

  1. damballa


    I would need to start trading futures (at least crude oil to be specific). I'm from EU. Can you please help me and/or point me to correct thread for answers.

    1) need to find a broker with API that has very low fixed commissions (for futures) and that can provide high resolution historical data through the API
    2) what are the best instruments (ways to trade) for me to trade oil with very low bets (like $1000)
    3) in practice, what kind of expenses (not including bad trades) in total should I expect?
  2. mickmak


    1) Define what you mean be "low commision". Typically cheap means no high resolution historical - I think "high resolution" historical means tick by tick data? Typically that stuff cost $$$.

    2) I don't know any broker that allows you to trade less than exchange margin requirement for CL. Maybe if you do options strategies. Not sure.

    3) That is a loaded question. How many contracts do you expect to trade? Rule of thumb: (exchange margin requirement * 3 + max overnight down)/2. Max overnight down is the historical CL drop for overnight. I think $7000? So you _should_ have ~$8000.00 per contract to trade. Obviously, you can start with something much lower, but expect to get cleaned out in one trade!