Choose trading instrument

[eagle941]

Obviously nothing is safe in trading, but with that word I meant to prefer long positions to short (even though it is hard for mean reverting) and to avoid overnight positions, as these two things seem to reduce risks.

Given that you are in the UK, why are you asking these questions here? The difference in time zones alone will present difficulties.

I am going to develop an automatic execution platform and I don't have a preference on the market so I don't think it will be a problem, am I wrong?

 

[Robert Morse]

I am new to trading, but I have a strong background in Computer Science.

I would like to focus on mean reverting strategies preferably with intraday frequency. Which type of instruments do you suggest me to start with because of their "safety" and level of difficulty?

Future.......

 

[SimpleMeLike]

Trading is kind of a long, lonely road of self-discovery.
Asking and answering these type of questions this early on will make no or not much of a difference.

All in due time, you will see and learn and realize for yourself.

You are right.

In trading, a trader will find out that they don't like instrument X, because of Y. Or they don't like scalping because of Z, they prefer risk vs reward trading.

I will advice to:

1. Watch a few instruments of interest on the chart daily for about a month.

2. While watching, think about how your system will have performed on that date with this instrument.

3. Think about profitablility when watching like "wow, if I would have use my strategy on this instrument on this day, I would have made X amount money.

Just a bit of my own experience. I watched ES for 3 years and dipping my toe in NQ and CL just to get a well rounded trading experience. A strategy may work on one instrument, but not on another, or even better on another.

 

[Palindrome]

I've always found longer term time frames MUCH easier to trade than shorter term. The mistake that I made was trying to trade intraday when I first started. But that is just me, I'm sure there are opposite experiences on here.

 

[SimpleMeLike]

I've always found longer term time frames MUCH easier to trade than shorter term. The mistake that I made was trying to trade intraday when I first started. But that is just me, I'm sure there are opposite experiences on here.

Hello Palindrome,

Intraday trading is good for people like me with small accounts and have to close positions by end of the market session. It depends on preference. I would recommend a newbie start with smaller time frame (1-15 minute) intraday trading just to get in the feel and gain experience of real time price movements. Especially with intraday trading.

 

[Steve Alexander]

I am new to trading, but I have a strong background in Computer Science.

I would like to focus on mean reverting strategies preferably with intraday frequency. Which type of instruments do you suggest me to start with because of their "safety" and level of difficulty?

ETFs or futures (ES, NQ, YM).