Seeing how the racing markets are dire and its apretty slow afternoon, thought I'd post this up showing one of the reasons why the racing markets can be like the futures markets.
Here is a snapshot of some charts with exactly the same timescale, completely different instruments (well.....not completely different!! But definitely different financial products!). They are separated by many thousands of miles put it that way!
Trading the racing markets is all about feeling where the price wants to go and how that influences other runners in the market because ultimately they are all linked. This happens in financial markets too.....can you see any particular correlation between these markets???
futures markets - why they are like horse racing markets...
Great post about the chart-art!
I think this is a good example of market psychology. Momentum, swings, projections, exhaustions, and most importantly, trapped traders... They are the ones who make the big candles, running to close their positions.
The real deal is to get the grasp of all these aspects most of the time, and have a strategy to trade them accordingly.
Cheers
I think this is a good example of market psychology. Momentum, swings, projections, exhaustions, and most importantly, trapped traders... They are the ones who make the big candles, running to close their positions.
The real deal is to get the grasp of all these aspects most of the time, and have a strategy to trade them accordingly.
Cheers
This is just a quick example but its the sort of thing I see everyday. There are charts inversely correlated to these. ( I use different charts for correlation for different sessions). For all the smoke and mirrors you see with trading systems and people trying to sell you your shirt off your back if you look hard enough there are plenty of things like this where you can make sense of what is going on.
Completely true with having to tie everything together and get a global picture with what is happening throughout the day, then you can break it down and look for individual entries. If you stick to a broad set of rules you can really get a grip with when and where moves are likely to happen then its just a case of using different markets as a guide to entry.
Imagine its like one betfair horse racing market spread out over a whole day. except instead of individual runners you have individual markets all influencing each other.
Completely true with having to tie everything together and get a global picture with what is happening throughout the day, then you can break it down and look for individual entries. If you stick to a broad set of rules you can really get a grip with when and where moves are likely to happen then its just a case of using different markets as a guide to entry.
Imagine its like one betfair horse racing market spread out over a whole day. except instead of individual runners you have individual markets all influencing each other.
dax, stox and e mini. Just 3 that are correlated. There are many that are equally as correlated. Bunds are reverse correlated....well....not all the time but as a general rule if the bunds break to the downside and there is no major news then the indices are likely to be pushed to the upside.
Also on the exchanges are currency pairs so you can trade currencies on an exchange model with no slippage, no broker taking your position and guaranteed execution on the same level as institutions.
Oil/Gold are also well trade instruments although I've never looked at them personally. I tend to concentrate on the dax and stox. At one contract its 10 euros a tick. Several hundred contracts can sit on one tick and get traded at once so scalability is huge. You could quite easily trade 500 contracts at once (5000 per tick!!) on the stox. Probably 1000 in fact without even sticking out.
Also on the exchanges are currency pairs so you can trade currencies on an exchange model with no slippage, no broker taking your position and guaranteed execution on the same level as institutions.
Oil/Gold are also well trade instruments although I've never looked at them personally. I tend to concentrate on the dax and stox. At one contract its 10 euros a tick. Several hundred contracts can sit on one tick and get traded at once so scalability is huge. You could quite easily trade 500 contracts at once (5000 per tick!!) on the stox. Probably 1000 in fact without even sticking out.
jmrobo> what broker / platform are you using? Is it tradefair?
Agree with your comment that the tick size in these markets makes scalability huge. I once traded GBP50/ tick and cleared a couple of grand in seconds. I stopped coz I couldn't quite understand why, but I'm getting interested again, in case betfair dries up.
Agree with your comment that the tick size in these markets makes scalability huge. I once traded GBP50/ tick and cleared a couple of grand in seconds. I stopped coz I couldn't quite understand why, but I'm getting interested again, in case betfair dries up.
I'm with velocity but I am looking to move really. I'm yet to find a broker that has excellent reviews though!
I use sierra for charting but I use a different platform for execution. Mainly because of my broker but I am looking to switch to an all in one platform because I hate paying in effect for data like I currently have to do!
I use sierra for charting but I use a different platform for execution. Mainly because of my broker but I am looking to switch to an all in one platform because I hate paying in effect for data like I currently have to do!
Thanks jimrobo. Velocity site looks solid, for Texans anyway!!jimrobo wrote:
I'm with velocity
I use sierra for charting
Out of interest what is the spread in Velocity?
eg, FTSE on Tradefair. Current is 6474 but tradefair will only trade a call on 6477 (+3). Not that i'm into microtrading but that buffer does give the broker a nice pad for doing nowt. Could you buy in straight on 6474 with Velocity?
fyi tradefair charting is okay for my charting. Although I only trade on
- lower bollinger
- neg v positive volumes
... so may be in the Simple And Dangerous category!!
Thanks jimrobo. Velocity site looks solid, for Texans anyway!!jimrobo wrote:
I'm with velocity
I use sierra for charting
Out of interest what is the spread in Velocity?
eg, FTSE on Tradefair. Current is 6474 but tradefair will only trade a call on 6477 (+3). Not that i'm into microtrading but that buffer does give the broker a nice pad for doing nowt. Could you buy in straight on 6474 with Velocity?
fyi tradefair charting is okay for my charting. Although I only trade on
- lower bollinger
- neg v positive volumes
... so may be in the Simple And Dangerous category!!
Thanks. 1 tick or comission sounds better than tradefair. I think I'll check V out.
your post reminded me of this trading and i had another bash on index in-and-outs today. 6 trades on Hang Seng and 6 from 6. *blows fingers* total +129 ticks.
now if only i had the brass balls to make it a couple of hundred quid a tick!!
your post reminded me of this trading and i had another bash on index in-and-outs today. 6 trades on Hang Seng and 6 from 6. *blows fingers* total +129 ticks.
now if only i had the brass balls to make it a couple of hundred quid a tick!!
Sod's law says that if you'd risked £100/tick it would've gone differentlykelpie wrote:Thanks. 1 tick or comission sounds better than tradefair. I think I'll check V out.
your post reminded me of this trading and i had another bash on index in-and-outs today. 6 trades on Hang Seng and 6 from 6. *blows fingers* total +129 ticks.
now if only i had the brass balls to make it a couple of hundred quid a tick!!
