weathering sideways markets

Discussion in 'Index Futures' started by rfoulk, Mar 16, 2002.

  1. rfoulk


    Daytraders ...

    What tools and techniques do you use to adjust
    your trading to sideways and small range markets.


  2. just21


    sell out of the money options.
  3. tntneo

    tntneo Moderator

    sideways is good.
    I like sideways.
    it's the best.

    that's the only time the best strategy is really : buy low, sell high.
    what is the problem ? :)

  4. carlp


    Learn to trade the range

    Sell at the top of the range

    Buy near the low of the range

    You can still make money
  5. God#9

    God#9 Guest

    ---- sell out of the money options.

    Wouldn't you want to do this when volatility is up?
    Where's the volatility in a sideways market?
  6. Fade the breakouts.
  7. just21


    Volatility might be in a new very low trading range because of the amount of convertible securities issued in the last year. The warrents that are part of the convertible are hedged by selling options. As long as the options you sell stay out of the money and expire worthless, volatility is not so important as time decay.
  8. Yaz


    Buy support...sell resistance. Just keep a tight stop..and be ready to leave it there and let your profits run if the "sideways-market" turns into a trending one.
  9. The problem with a sideway market is you realised it's a sideway day at around 3:30PM.... :p
    ... and of course, one could short at resistance and long at support, with a very tight stop, however, in a sideway day with small range, I much prefer leaving the desk and go out enjoying the sun and a beer on a terrasse. :D
  10. I agree with you !!
    low volatility high sun on a terrace
    #10     Mar 20, 2002