Euro Currency Futures 2006

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downrivertrader

Hello everyone. I am starting this thread as a place to discuss trading Euro Currency Futures or EURO FX. The ticker symbol is EC and this contract is traded on the CME. http://www.cme.com/trading/prd/overview_EC2465.html.

I like trading on the Globex with an orderly process and low transaction costs. The most important reason I trade futures is because I can track volume/price distribution thorughout the day. This is an important part of my trading decisions. Euro FX has some nuances, but in genereal it follows the cash market very closely. I haven't tracked the daily volumes in general, but several hundred thousand contracts are now traded with a significant amount of constant growth and liquidity is usually not a problem for me. You can research this on your own at the above link.

The market trades virtually almost 24 hours and I like this flexiblilty and the opportunities it offers.

I am not going to get into any methodologies, just want to have general discussions and views on positions, etc. I will try to post most of my trades here. If someone wants to discuss strategy and methods, then have at it.

Take care and good trading.
DRT
 
I also wanted to let everyone know that I recently changed my handle here at ET. I used to be "VisionTrader" and began posting here when I first became interested in trading back in 2002. I had no idea what I was doing back then. I used to have a journal called "Chronicles of an Idiot" and it was a fitting title. I traded the Indexes back then and lost a lot of money.

Thanks to everyone here who helped me thru these trying times. I have perservered and "Life is Good". I recently gave my trading business a name to help fight Uncle Sam's wrath and I call it "Down River Trading.) Hence my new handle....DownRiverTrader

This may not be important for some, but I will feel better if everyone knows who I really am.

Take Care and Good Trading.
DRT
 
I have been hanging out over in this Euro thread http://elitetrader.com/vb/showthread.php?s=&threadid=61517&perpage=6&pagenumber=21 but most of these traders seem to be trading the cash market and it can get a little confusing for me. I watch the spot market side by side the futures and have been trying to translate the price conversion when I posted. Anyway, there are a lot of good traders and info in this thread if you like the Forex market. This is a good place to discuss trades also.

DRT
 
Hello DownRiver,

i wonder if u can explain to me the relation between the EC FX volume and the spot.

do u think that the futures' volume is a good broxy for the spot ?
 
Hey downrivertrader
Nice to see u r back
Can you tell me how are you trading the nec
And which broker are you using
i wanted to start trading the Future also
A little help and knowledge is greatly appreciated
 
I am very familiar with CME order types. I wanted to inform everyone that the CME does not support traditional MARKET orders.

http://www.cme.com/trading/get/abt/enterorder987.html
"Market Order: Market Orders at CME are implemented using a "Market With Protection" approach. Unlike a conventional "Market" order, where customers are at risk of having their orders filled at extreme prices, "Market With Protection" allows the order to be filled within a pre-defined range of prices (Protected Range). The Protected Range is typically the current best bid or offer, plus/minus 50% of the "no bust range" for that instrument. If the entire order cannot be filled within the protected range, the unfilled quantity becomes a Limit Order at the limit of the Protected Range."


For example lets say the market is trading 12020. You have a market order to buy 1 @ 12030. 7:30 number comes out and the market runs up to 12100. You assume you have been stopped out. However, 2 hours later you look at your computer and find out you are working a buy limit order @ 12040(50% of 20 point no bust range in Euro FX).

Be very careful with your stops!!!!!!
 
As far as defining a relationship, I am not capable. Since there is really no spot volume reported on any centralized exchange how can you really compare? Obviously the real spot volume is zillions times what is traded on the CME for this one contract. I use the volume stats mostly to determine entry points or watch bottom and tops solidify.

Price will always (almost always) form a Bell Curve in an auction market. Once a proper value is resolved within this area, it will seek direction out of the curve higher or lower. I am not a student of market profile although I very much respect this concept. It is a bit much for me.

I use TradeStation as my platform and one of the best features is what they call the Matrix. It is simply an easy to use order tool. Many programs have these I am sure. I have attached a picture of how I use the volume data in a price/distribution display to give you an idea. If the picture is large, I apologize. I have this displayed vertically on a large vertical monitor to see the whole curve and if I shrink it you can not see what I mean.

Hope this helps more than it confuses you. I will try to make references to it as time goes on.

DRT


Quote from waelmg:

Hello DownRiver,

i wonder if u can explain to me the relation between the EC FX volume and the spot.

do u think that the futures' volume is a good broxy for the spot ?
More...
 

Attachments

Not sure I fully understand your question but....

I use TradeStation platform with an integrated platform account from RJ O'Brien as my clearer. You can trade EC thru many platforms and brokers.

Just begin to follow along with us in the thread and hopefully you will get some trading ideas. There are lots of good traders here at ET so try to absorb what they say.

DRT


Quote from ksonsinc:

Hey downrivertrader
Nice to see u r back
Can you tell me how are you trading the nec
And which broker are you using
i wanted to start trading the Future also
A little help and knowledge is greatly appreciated
More...
 
Sunday, January 15, 2006

If you read thru the link to the Euro spot thread I posted, you would see that I was long going into the close on Friday. I took the opportunity to buy when things were heading South on Thursday. I made one entry at 1.2147 and another at 1.2120. These were not the best of entries, as price continued to correct downwards. However, things did turn around and Friday closed around 1.2175.

There is some major headwind in my studies just above us at 1.2190 to 1.2210. Not to mention the 200 day MA at .2253 or so. I am going to watch the order flow as things get going and I may very well exit my trades. I have about 85 ticks in profit and have a full postion on at this point.

One thing that concerns me is that all my studies point to a higher Euro short term. This is normally when I try to be extra cautious as price always takes a strange path to get where I think it is going.

Also, and this is a big also, I have seen a tendency for price to seek equilibrium as the middle of a month unfolds. We are trading way above right now. I think there is strong chance we may move down to the 1.1894 area if the resistance holds.

Good luck this week. I am going to do my best to post my thoughts/trades here but posting is definitely secondary to my trading.

DRT
 
Quote from downrivertrader:
I will try to post most of my trades here. If someone wants to discuss strategy and methods, then have at it.
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More...

Hey man,

Im considering using globex volume to augment my spot fx strategy.

My strategy is standard - trade the breakout after a period of market flatness. ie 'Calm before the storm effect'.

Does a perceptable dearth in volume precede a big move on globex? Is there any transferability between volume patterns witnessed in stocks to those witnessed in currency futures? pertaining to big moveS?
 
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