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Depends what's happening in the market. The basis spreads trade in both directions. But, the lower the VIX, the better the futures will lead market moves. Basis spreads NQ - NDX ES - SPX RTY - RUT YM - DJX can be used to front run big action coming out of GLOBEX/ECBOT, but it doesn't always...

Not an expert, but I would think there is some kind of structured product theme based around economically advantaged hedges for the supermajors. You buy the big dividend stocks or a basket of them, and then hedge the risk with energy futures. The div is very high, and since you are hedging with...

I think what this is actually talking about is trying to think like a participant that is being required to manage large exposure relative to other participants. The largest traders are moving the market so they're incentivized to stack and flip the speculative participants by forcing the...

I trade the European cash early morning, ES and rates...so, no. But, if I happen to be trading the US cash session, then this is just a tool for keeping an eye on vol so I don't do something stupid and trade against the big names. No, just outrights, rate or index spreads. That thing is just a...

Day trading indexes is one of the hardest things to do well. It's best to know the treasury market, options market, index spread market, and have some really good quantitative models to do smart research for you in real time. If you ignore treasuries, you get blindsided by flows into and out...

Thanks again. Figured this out after I started digging into the implied vol data. Made an index using aggregated normalized implied vols. It can be compared to the individual names using a simple thinkScript study. (not sure if these are ATM implied vols or what, but it's working) Looks like...

The reason is because the stuff is complicated and esoteric. It's going to be using digital signal processing techniques and advanced ideas from volatility pricing and/or market structure, synthetic instruments and so on. You need expensive data feeds, and co located servers and shit. Funding...

I built scripts that track algos like the one Waddell & Reed are using...lol

The most important indicators are probably VWAP and linear regression moving averages. VWAP will help you establish context, and the LRMA is a standard estimate for trend over all time periods. I also use a spread of price vs indicator differentials, but that is some stuff I researched and has...

Institutions are long the physical, puts, and short upside vol. A crowded trade. When the rotation happened, Russell, Dow, and SPX rallied beyond the short call strikes. NQ is hedged in vol, so if it starts to drop, the dealers will have to chase it down since they are short downside protection...

In the beginning, I tried to make TWS do all the charting. Had like six or seven charts with indicators, spreads, comparison charts, on top of the watchlist, booktrader, order entry, and portfolio windows.... It brought the software to it's knees -- very quickly. Also, the charts get fucked up...

I have demo and live traded oanda, didn't like it. Demo'd a bunch of other ones too (IBFX, TradeStation, and Liteforex). Got sick of forex and decided to move over to futures. I have traded futures in demo and live now, and would probably recommend IBKR both for demo and for live CME globex...

The funny thing is that there is a lot of money in the Dow/Russell spread. The futures guys buy DJX, and sell RUT on globex using the front month contracts. The vaccine news caused a "rotation into value" and so RTY went limit up. The spread traders must have had a fun day. I remember looking...

There's an entire history of technique that is collectively termed technical analysis. Names like Dow, Gann, Elliott, Wilder, Wyckoff, Ehlers, and a hundred more. TA is a part of markets just like futures, options, stocks, and bonds are a part of markets. It's a way to learn the language of...

You may want to look into the more complex type of averages and filters. Kaufman's Adaptive Moving Average (KAMA) uses a nice weighting scheme based on the efficiency ratio. You can use it to denoise trending time series. Linear Regression Moving Averages (LRMA) are standard for detrending...

The Wealth of Nations, Adam Smith

Wouldn't options become much more attractive since the notional value of an option is much smaller than an outright position in the underlying unless deep ITM or for long dated? The dollar volatility of an option is much higher as a percent of the transactional value of the contract than for...

The bots and algos that are dominating directional instruments/spreads are usually some variation of predator prey models. It's something like this picture. Blue would represent the volume buying/selling, while the orange represents price. This is so that they can do the most volume, while...

Might want to read into gold leasing. From what I gather, the producers and bullion banks don't mind falling prices, as it supports the leasing market by providing income to banks since it's an incentive for producers to lease the metal, sell it into the spot market, and utilize the cash...

I use hotkeys for order execution. I have a key for each instrument...NQ, ES, YM, RTY, and UB. Then I use Ctrl and Shift as modifiers for Buy/Sell. You can be very fast with TWS. I use the API for Excel charting. You can also right click the position on in the portfolio window and hit close >...