"The dancing DAX" - LOL I just love that.... I trade only DAX, but I watch ESTX50, GBL, CAC40 as correlation indicators and always have market depth open on all of them, as well as their tapes (well, DAX and ESTX tapes, anyway). When the US opens, it's exactly the same thing, only that I replace the now less relevant EU indices with ES & NQ as correlatives, as well as their tapes. Never looked at FTSE or OMX before, but I heard FTSE is pretty boring. Well, I'm quite happy with DAX. It's extremely volatile and very inefficient (particularly in comparison to the primary US markets). A bit more liquidity would be nice for larger size scalping, but then I think that would probably dampen exactly that which we like most about it - the volatility. Just look at the ES these days - You have 5,000+ contracts on both sides of the market most of the time - no chance for real volatility or range for that matter to happen, because price always has to eat itself through the lamest buffaloes in the herd before it can move anywhere.
they're a trading arcade as far as i know - i.e. individuals trading stock and bond futures / options at an office for their own account. http://www.ucd.ie/careers/custom_house_trainee_traders.pdf probably old, but gives you a bit more colour... can't find the reference but the interesting thing about them (from my perspective) is their seemingly sophisticated approach to managing their traders' tax exposure - offshore tax structures etc. unfortunately i have no details.
I find the FTSE has poor intraday trending properties. Dare I say it's too "efficient"... No sustainable edge in there for me. Or maybe I'm just lazy! Just look at the ES these days - You have 5,000+ contracts on both sides of the market most of the time - no chance for real volatility [/QUOTE] True - it's more of a BOBL to the DAX's BUND, if that makes sense I think it requires a different approach to the DAX. Play ranges instead of breakouts - this strategy seems good from 11.05 until 1.25ish..... If you know what I mean.
Just wondering, does any of you know someone in those London arcades? What are their styles, strategies, how profitable are they? I surmise they must all be exceptional traders just to bring some dough home after fees totaling more than 1500 pounds/month.
As a rule of thumb, for every 10 they take in as trainee traders, 1 makes money in the first year, 1 struggles for a year and 8 give up. Reason being they don't pay a salary and obviously London is expensive. Essentially, it becomes a cross between self-selection and survival of the fittest. Regarding overcoming the fees, comms and profit share, the answer is purely down to size. On the futures side, profitable traders will buy and sell 20 lots at a time looking for a tick. Nicely profitable traders will trade 50 - 100 lots at a time. They do a lot of volume per day and scratch perhaps 60% of their trades. After two years experience / survival, EUR100k a year is ballpark. Know nothing about the option locals... Most locals I've met trade the BUND & BOBL, go purely off price action and will always play defensively. From observation only, if you can do it, you're onto a winner - the lifestyle is flexible to say the least.