Eurex Vols
- Thread starter doublechin
- Start date
I do know what im talking about, it is evident that there are no Scalpers left in the market as the volume levels reflect this, the only Locals that I know of that are still involved in EUREX are now looking at trades on a longer time frame ( as opposed to tick trading ), with a view of trying to catch 10-30 ticks- thats position trading not Scalping.
Well then, I would say that statement reflects what I have been saying for quite a while now: why scalp ? If the remaining traders you know are staying with trades longer, then it must have some validity, yes ?
I am now looking at the FGBL order book at 7:12 am, and it is a couple hundred up - which is "scalpable" in terms of immediate bid/ask liquidity. Over 402K have traded.
The real issue and "problem" or "challenge" with scalping electronically is that they all go at once. What was an "edge" in terms of buying the bid or selling the offer disappears completely. It is very tough to buy bids and sell offers in highly arbitraged liquid products with large trading ranges in the modern electronic age. Personally, I do not believe that manually scalping electronic flat price markets is a viable strategy these days. Standing in the pits, you had that extra fraction of a second to find a broker - you knew where your "out" was. A dozen years ago, you could scalp DTB and then Eurex and pick off the order book all day long provided you had a live squawk in the Bond pit at the CBOT, and a fast single click execution platform like TT X-Trader.
Times have changed. Personally, I don't think there is anything particularly "wrong" with the market, it is the strategy that is obviously flawed.
Is there a large, liquid flat price electronic market that you can manually scalp these days on a consistent basis for months on end ?
Yes, that my point entirely, hence all the scalpers have left trading EUREX, its now just the position trader guys doing relatively small clip sizes and looking for 20+ ticks.However, for this style of trading Direct market access is not required, as can opt to trade this way via Spreadbettting and consequently save a fortune on any associated desk fee's at an arcade and profits are all tax free in the UK.
Also EUREX is not compatatiable to scalp by looking at the bids and the offers, as the HUMAN brain does not see the true market ( we see a delayed version- due to the latency at the Frankfurt servers and the algo's is less than a human brains ).
Many of the ex EUREX Arcade style Scalper traders are now currently looking at the AG'S with the majority either have or are in the process of switching to CBOT.
Also EUREX is not compatatiable to scalp by looking at the bids and the offers, as the HUMAN brain does not see the true market ( we see a delayed version- due to the latency at the Frankfurt servers and the algo's is less than a human brains ).
Many of the ex EUREX Arcade style Scalper traders are now currently looking at the AG'S with the majority either have or are in the process of switching to CBOT.
I think it a mistake to assume that HFT firms like GETCO and RSJ are not currently or will not imminently be involved in those markets. If anything, logical deduction might conclude that about a dozen very good and well capitalized private HFT firms located in Chicago are in fact active in those markets.
Yes I agree there are many HFT funds involved in these markets.However, the ex EUREX scalpers are switching into these markets as there is a lot more volume which larger traders obviously need to get their required fills etc.
One of the guys at my arcade knows one of the Tech guys at EUREX, and he states that approx 75% of the daily volume is executed via Algo's /HFT. As of 18.30 CET- approx 750k bunds have traded, which leaves us with approx 185k of those contracts have been executed via the " point and click"/Human route.