Using Stops On A/c/e For Bonds

Discussion in 'Trading' started by larrybf, Sep 20, 2003.

  1. I have been using cme globex for several years . just starting with CBOT emini bonds and i would like to enter orders around 8:20 ( when the pit opens).. I want to use stops and limits for my exits but the volatility around the 8:30 economic reports has me a little concerned. How is the execution of stops at news time (8:30)??? GOOD? BAD? MIXED?? THANKS
     
  2. better to wait until after the reports come out
    at 830 , 915 , 10 am etc sometimes even 1 pm

    to place orders and stops ... else you can get hurt
    in my opinion

    good luck

    perhaps the 5 yr note is better to try as the tick value is 1/2 the 30 yr and the daily range is less than the 10 yr ?
     
  3. you will not have the problem
    anyway after december, when
    LIFFE connect kicks in to e-Cbot,
    the system will not support native
    stops any longer (AFAIK)
     
  4. tntneo

    tntneo Moderator

    whatever the stop type (native or not) around report times liquidity is so thin that you will suffer huge slippage (and nice profits, depending..hehe).

    Don't have a position around report times unless :
    - you want to try to profit from the extra volatility
    - or you hold for long enough that noise won't shake you out.

    imo
     
  5. bone

    bone ET Sponsor

    Consider an alternative to the Bond mini, as the liquidity is very thin and the slippage is a killer. I would recommend trading a single Ten or Five year Note contract.
     
  6. GUYS... thanks for all the very helpful replies.... most importantly i realize i better learn more about the bonds before committing any serious $$$$$. BONE............ YOU SEEM VERY KNOWLEDGEWISE ABOUT BONDS... when i look for info it seems like everywhere and everyone only wants to discuss emini SP and NQ... ANY ADVICE WHERE TO LOOK FOR GOOD INFO TRADING BONDS???????
     
  7. Also watch the 30 year for ten day or so before you trade. It many times opens in one direction goes to other and might end where it started the volatility is enormous. It is not only linked to US reports and news, watch other things like currencies because they move off them.