Suggestions for futures to trade

Discussion in 'Trading' started by globalarbtrader, Jun 17, 2022.

  1. Overnight

    Overnight

    Those are really only tradeable on ICE, which OP doesn't want to trade because of their high fees.

     
    #31     Jun 18, 2022
  2. Simplify your life! Pick one and move to becoming a master. After all, it's just movement that we trade. Success to you!
     
    #32     Jun 18, 2022
  3. Handle123

    Handle123

    Milk, Rice
     
    #33     Jun 18, 2022
  4. Overnight

    Overnight

    Milk and Rough Rice? GAME PENALTY! -30 to Slytherin! Evil man.

    GAT, don't mess with milk and rice. Ignore the evil Handle. You'd have better luck with uranium, lol!
     
    #34     Jun 18, 2022
  5. Not so very popular and thin volume; only site I know that trades them with back test data is KJ Trading Systems.
     
    #35     Jun 18, 2022
  6. Overnight

    Overnight

    Avoid that site like the plague.
     
    #36     Jun 18, 2022
  7. KCOJ

    KCOJ

    If you search you will find that all of the below recommended markets are available via IB. I have at some stage traded all of them so well aware that some do have liquidity challenges but none more so than your inclusion of the SGX Straits Times Index!! In addition it’s important to look at more than just Volume/Open Interest as some market such as Rotterdam Coal may have low volume but the average retail trader will rarely trade more than 1-lot at a time due to the size and volatility of the contract.


    So let’s get started …


    EUREX European Equity Sector Indices

    For those unfamiliar with these markets there are two broad groupings: EURO STOXX indices and STOXX Europe 600 indices.

    EURO STOXX indices are a subset of markets contained within the corresponding STOXX Europe 600 indices and as such they tend to be highly correlated. In all cases the EURO STOXX indices are less liquid (with wider bid/ask spreads) than the corresponding STOXX Europe 600 indices. As such I have in the past found no benefit to including EURO STOXX indices in my own trading.

    So with this in mind there are a few STOXX Europe 600 indices that are not currently in your portfolio:

    · STOXX Europe 600 Banks

    · STOXX Europe 600 Financial SVC

    · STOXX Europe 600 Industrial Goods

    · STOXX Europe 600 Telecom


    Other EUREX Stock Indices

    · Euro STOXX 50 Dividend

    · MDAX

    · MSCI Emerging Markets

    · MSCI Europe

    · MSCI Japan

    · MSCI Russia (current times excepted)

    · RDX USD (current times excepted)

    · SLI

    · STOXX Europe 600

    · STOXX Europe 600 ESG-X

    · TecDAX


    CME US Equity Sector Indices

    Unfortunately most of these indices are not available within IB due to some obscure tax ruling which no-one at IB has been able to explain to me. That said there are a few that have slipped through the net and are available to trade:

    · E-mini Nasdaq-100 Biotechnology

    · E-mini S&P 500 ESG

    · E-Mini S&P Consumer Discretionary

    · E-Mini S&P Consumer Staples

    · E-Mini S&P Health Care

    · E-Mini S&P Industrial

    · E-Mini S&P Technology

    · E-Mini S&P Utilities


    CME US Stirs

    · 30 Day Federal Funds

    · One-Month SOFR

    · Three-Month SOFR


    Montréal Exchange

    · BAX

    · Canad. Govt Bond (10Yr)

    · Canad. Govt Bond (5Yr)

    · S&P Canada 60


    Korean Won KSE

    I note that you are trading other KSE markets but choose to trade the Won on CME. THE KSE contract is vastly superior in terms of liquidity


    CME Currencies

    · Australian Dollar/Japanese Yen

    · British Pound /Swiss Franc

    · Euro/Australian Dollar

    · Euro/Canadian Dollar

    · Polish Zloty/Euro

    · South African Rand


    Other CME markets

    · Dry Whey

    · E-mini Russell 1000

    · Goldman Sachs Cmdty Indx

    · iBoxx iShares $ High Yield Corporate Bond

    · iBoxx iShares $ Investment Grade Corporate Bond

    · Milk Non-fat Dry

    · U.S. Midwest Domestic Hot-Rolled Coil Steel

    · USD-Denominated Ibovespa


    Misccellaneous

    · Euro-BONO - EUREX

    · Rubber TSR 20 -SGX



    You mentioned that you have concerns with some of the data fees being prohibitive, but here are a few fairly cheap ones that I feel are worth including …


    Hong Kong Derivatives HKD 27/mth

    · Hang Seng

    · Hang Seng TECH

    · H-Shares


    Mexican Derivatives $6/mth

    Mainly talking the IPC here


    ASX AUD 21.5/mth

    · Australian Bank Bills

    · Australian Govt Bond (10Yr)

    · Australian Govt Bond (3Yr)

    · SPI 200


    Euronext Commodities EUR 19.50/mth

    · Corn - MATIF

    · European Rapeseed

    · London Wheat

    · Sugar #5 (White)

    · Wheat – Milling


    Various other European Stock Indices (minor data fees)

    · FTSE EPRA/NAREIT Developed Europe

    · IBEX 35

    · MIB

    · OBX

    · OMXS30


    LME Metals

    While you cannot trade directly on the LME with IB, they have recently launched their own OTC contracts. Liquidity is little thin so you are definitely better off trading Copper and possibly Aluminum on COMEX, but for those metals not available IB is an option worth considering in the case of Nickel. Zinc, Lead and Tin.

    A couple of disclaimers here. Firstly, these are OTC so you need to consider your counter-party risk with IB. Secondly these are Forwards not Futures … traps for young players here so do your homework


    Intercontinental Exchange


    Fully appreciate that this is account size dependent, but I strongly encourage you to reconsider your “probably not” comment. Outside of the CME and the Chinese excanges, ICE contains the highest number of significant portfolio diversifiers. Just a few examples …

    · API2 Rotterdam Coal

    · Bakkt Bitcoin

    · Canola

    · Cocoa

    · Coffee Arabica

    · Coffee Robusta

    · Cotton

    · ECX CFI

    · Euro Swiss Franc

    · FTSE 100

    · FTSE 250

    · Gas Oil

    · London Cocoa

    · Long Gilt

    · MICRO NYSE FANG+

    · MSCI EAFE

    · Natural Gas UK

    · Newcastle Coal

    · Orange Juice

    · Sugar

    · Three Month SONIA

    · US Dollar Index


    Your consideration solely of “a return increase” ignores the significant increase in risk-adjusted return that the addition of these type of markets will provide. Don’t believe me … throw them into your various back tests and see what happens!


    This is a rather lengthy post so I’ll end here, except to add that imo IB offers a great range of markets but for those not confined to trading with IB please keep in mind that there are of course many other futures available via competing brokers.
     
    #37     Jun 19, 2022
    djames, shuraver, newbunch and 3 others like this.
  8. This is absolutely superb and exactly what I was hoping for when I posted. One like isn't enough!

    GAT
     
    #38     Jun 19, 2022
    newbunch likes this.
  9. wmwmw

    wmwmw

    Different markets behavor differently. It is not about rules based or not.
    The one who makes 20% annual profit on 160 markets , can make 200% annual profit if he focus on one or two markets.
     
    #39     Jun 19, 2022
  10. KevinBB

    KevinBB

    ET should have an option to add a post like this to a list of favourites for future use. Maybe it has ... but I can't find it. Thanks for taking the time to do this.

    KH
     
    #40     Jun 19, 2022