Trade after work -- Trade HSI

Discussion in 'Index Futures' started by ET99, Nov 14, 2007.

  1. ET99

    ET99

    #101     Jan 27, 2008
  2. ET99

    ET99

    it is healthy to be skeptical, especially reading something from an internet forum.


    If you disect the numbers, you will see the numbers are not that impressive.

    First, look at the frequencies of the trades -- high.
    Then look at the average profit from each trade -- not so high.

    Verdict: this is high frequencies scalping, with occassional trend rides.

    Scalpers look for high probability set up. They are concerned with low risk small profits than the unknown (to the scalper's orientation) risk "Fat" trend rides.

    There are people who can make more money with fewer trades, a modest W/L ratio, and pay far less commission. Maybe they are more impressive.

    This high frequency trading is geared toward a high frequency instrument (HSI), and for people who wants to trade for a few hours and pack it in. There is no overnight holdings. I don't even hold anything over lunch. I don't like to initiate new positions after 11:30~11:40 HK time.
     
    #102     Jan 27, 2008
  3. ET99

    ET99

     
    #103     Jan 27, 2008
  4. ET99

    ET99

    The HSI's volume is thin, compared to ES and many other instrument. The past 3 months average daily volume is about 80,000 contracts. That works out to about 300 contracts per minute.

    Is HSI Tradeable?

    The answer is absolutely YES.

    If HSI were a thinly traded stock with questionable fundamentals, I would be worried; it might be manipulated.
    But HSI futures tracks the HSI index, which is a basket of highly capitalized companies with solid financial foundation. No matter where people want to push the future, it cannot be manipulated from a fair premium with the underlying. I know, I track it by the second. I am sure many Arbies do too.
     
    #104     Jan 27, 2008
  5. Trayo

    Trayo

    >>>Fair enough..
     
    #105     Jan 28, 2008
  6. Trayo

    Trayo

     
    #106     Jan 28, 2008
  7. Trayo

    Trayo

    Scuse me, I meant to say 5 lots?

    Scalping for 4-5 tics or so?
     
    #107     Jan 28, 2008
  8. ET99

    ET99

    let's take this day's trade as example:
    http://elitetrader.com/vb/showthread.php?s=&postid=1758853#post1758853

    commission per trade (in/out) = HK$60
    Total comm of the day = HK$2040

    $2040 divided by $60 = 34 contracts traded.

    Total trades made = 29

    Therefore most of the trades were single contracts, with the odd ones in 2 or more contract lots.

    I also scale out and scale in. There were instances where I was holding 3 contracts, the software counted them as 3 trades of 1 contracts each.
     
    #108     Jan 28, 2008
  9. Trayo

    Trayo

    OK. So your average 'scalp' is 50 pts or so?

    Looks like that happens pretty quick with HSI...
     
    #109     Jan 28, 2008
  10. dozu888

    dozu888

    yeah right, and he is doing this with like 95% accuracy.

    newbies be aware.
     
    #110     Jan 28, 2008