Any Bund traders out there?
- Thread starter BundMaster
- Start date
Bundmaster:
Refco has a prop shop you may wish to look at, Refco Trading Services. They are Macfutures here in the states, www.refco.com. They have an office in Chicago.
Refco has a prop shop you may wish to look at, Refco Trading Services. They are Macfutures here in the states, www.refco.com. They have an office in Chicago.
I think the Schatz is a ridiculous creature, if you want to trade a short-end contract outright then you are far better going for Euribor. Bund is an absolute animal at times, I have a real love-hate thing going on with it. I know a lot of guys who do very well trading the Bobl.
I have to say that I find intraday spread trading to be pointless (no offence), if your going to trade, just trade, if you can't handle the risk then guess what? trading isn't for you. Just my opinion, mind.
Here's a free money trade for you in the Bund that some of you may not know. When the Bund opens outside of the previous days value area and then goes into this value area and prints two sets of TPOs, (for example the A's of the market profile probe into the value area and then the B's print there as well), it will almost always go right through the value area. You'll need a bigger stop to allow for a little room but it will do it. This works equally well for the T-Note too. The other day they both double printed at the same time (which is an absolute cert) and I sold 62 in the bund, getting out at 40, and did the same in the T-Note 13.5 exited at 6.5. Not bragging, just showing that it does work.
I have to say that I find intraday spread trading to be pointless (no offence), if your going to trade, just trade, if you can't handle the risk then guess what? trading isn't for you. Just my opinion, mind.
Here's a free money trade for you in the Bund that some of you may not know. When the Bund opens outside of the previous days value area and then goes into this value area and prints two sets of TPOs, (for example the A's of the market profile probe into the value area and then the B's print there as well), it will almost always go right through the value area. You'll need a bigger stop to allow for a little room but it will do it. This works equally well for the T-Note too. The other day they both double printed at the same time (which is an absolute cert) and I sold 62 in the bund, getting out at 40, and did the same in the T-Note 13.5 exited at 6.5. Not bragging, just showing that it does work.
The Euribor is a ridiculous trade if you're trying to get more than 50 lots outright and you're not a spread trader - the Liffe spread algorithm screws you over. Plus - the Euribor won't trade until the Shatz trades out.
The Eurex yield-curve spreads have a tremendous intraday trading range - and speaking from personal experience provide plenty of opportunity to make a living on an intraday basis.
The Eurex yield-curve spreads have a tremendous intraday trading range - and speaking from personal experience provide plenty of opportunity to make a living on an intraday basis.
Stratcat - I didn't understand the terminology you were using. Do you mean when the market opens above (or below) where the bulk of yesterday's trading took place? Then, when it trades down to the high of that area, if it does not bounce, but instead starts trading through that level, it is likely to go all the way down and test the lows of that area?
Maybe you can point out an example? You mention selling 60 and buying 40, was that on Jan 21st?
Maybe you can point out an example? You mention selling 60 and buying 40, was that on Jan 21st?
Cutten, yes that's what I mean. The way to see this is by using market profile. Have a look at the T-Note for today and you'll see what I mean.
Regarding Euribor vs Schatz, I think the pro rata system is one of the contracts biggest strengths for a daytrader. Say there's 2000 lots on the offer and you're 200 of them, someone might buy 500 and you might get say 70 lots and be able to take a tick profit straight away, nice little profit and you didn't even have to see the offer trade out.
Also if you are wrong on a trade you can join the bid/offer and you may get partfilled, you could scratch say half of your position whereas in a queuing system you wouldn't get any because your at the back. Euribor pays a lot of attention to the Schatz, Bund, etc but is very much it's own master and often moves in a characteristic fashion that can be recognised by consistently watching it. Also it is the one to trade over any interest rate related comments, and has LIFFE connect which is quicker than Eurex (when it's not locking up).
The worst thing about the Schatz is that often nothing trades in there, it will be bid for 8000 then suddenly they're all pulled and there's 5000 on the offer, not much fun if you're at the back of the queue.
Just my opinion, everyone's different but I have limits in both contracts and I hardly ever touch the Schatz.
Regarding Euribor vs Schatz, I think the pro rata system is one of the contracts biggest strengths for a daytrader. Say there's 2000 lots on the offer and you're 200 of them, someone might buy 500 and you might get say 70 lots and be able to take a tick profit straight away, nice little profit and you didn't even have to see the offer trade out.
Also if you are wrong on a trade you can join the bid/offer and you may get partfilled, you could scratch say half of your position whereas in a queuing system you wouldn't get any because your at the back. Euribor pays a lot of attention to the Schatz, Bund, etc but is very much it's own master and often moves in a characteristic fashion that can be recognised by consistently watching it. Also it is the one to trade over any interest rate related comments, and has LIFFE connect which is quicker than Eurex (when it's not locking up).
The worst thing about the Schatz is that often nothing trades in there, it will be bid for 8000 then suddenly they're all pulled and there's 5000 on the offer, not much fun if you're at the back of the queue.
Just my opinion, everyone's different but I have limits in both contracts and I hardly ever touch the Schatz.