by the way trader5287...what the recent call analysts were making was that as the 10yr rate moved from 4.10 to below 4.00%...convexity buying would come in and massively move the market out of whack...guess what, didn't happen when we touched 3.99 and didn't happen when we hit 3.89...whereas Traders I talked to said any convexity buying would occur likely around the 3.75 area and we are a long way from there now!lol
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Eurodollar Futures (GE)--anyone else trading these?
- Thread starter trdinglife
- Start date
Trdinglife
Read some of your posts and you seem like you have a good grasp on the ED's. Thanks for the great input. Ive been trading 10 yr.'s for about nine months and just started trading the ED's last Friday. Im really shooting for 4-6 1/2 ticks per day (Im doing 25's right now, my firm will push me up the more consistent I am with them). My initial strategy is two fold....first, Im looking to enter when the contract trades to a level, is out of value, and the 10-yr has basically exhausted (or put in a tail on the Mkt Profile). ALot of traders I know on the floor say this works really well when fading the first move in the morning b/c spreaders will usually come in at this point and drive the contract back into value. Also, IM looking to trade these during numbers (either getting in if the number is out of line OR fading the market on smaller numbers and the market trades to a good level.
My questions to you are this.......Does this strategy sound good? What kind of things are you looking for and getting in on (Some guys at my firm just scalp it in the direction of the market until about 1030 cst., off the back of the 10 yr and using the market profile...This works well for them, but I am ultimately looking to make fewer trades and have a goal of being able to get in on trades for 100-200 lots.)? And (the big one) are you generally working the bids and offers or are you trading it more as momentum trade, getting in when the market is going bid/offer?
Any answers questions or comments from you or anyone else would be GREATLY appreciated.................
Read some of your posts and you seem like you have a good grasp on the ED's. Thanks for the great input. Ive been trading 10 yr.'s for about nine months and just started trading the ED's last Friday. Im really shooting for 4-6 1/2 ticks per day (Im doing 25's right now, my firm will push me up the more consistent I am with them). My initial strategy is two fold....first, Im looking to enter when the contract trades to a level, is out of value, and the 10-yr has basically exhausted (or put in a tail on the Mkt Profile). ALot of traders I know on the floor say this works really well when fading the first move in the morning b/c spreaders will usually come in at this point and drive the contract back into value. Also, IM looking to trade these during numbers (either getting in if the number is out of line OR fading the market on smaller numbers and the market trades to a good level.
My questions to you are this.......Does this strategy sound good? What kind of things are you looking for and getting in on (Some guys at my firm just scalp it in the direction of the market until about 1030 cst., off the back of the 10 yr and using the market profile...This works well for them, but I am ultimately looking to make fewer trades and have a goal of being able to get in on trades for 100-200 lots.)? And (the big one) are you generally working the bids and offers or are you trading it more as momentum trade, getting in when the market is going bid/offer?
Any answers questions or comments from you or anyone else would be GREATLY appreciated.................
I think you're on the right track, depending on the contract you trade. Considering that the average range has been about 6-10 full ticks a day for the past year or so (once again, depending on which contract you're trading), it might be a little difficult to achieve your goal of 4 1/2 - 6 ticks per day in 1 trade. A lot of guys (including myself) scalp these for just that reason. Trading size is easy in this market, and being right for 1 1/2 ticks is a lot easier, in my opinion. Anyone disagree?
Quote from Bix35:
I think you're on the right track, depending on the contract you trade. Considering that the average range has been about 6-10 full ticks a day for the past year or so (once again, depending on which contract you're trading), it might be a little difficult to achieve your goal of 4 1/2 - 6 ticks per day in 1 trade. A lot of guys (including myself) scalp these for just that reason. Trading size is easy in this market, and being right for 1 1/2 ticks is a lot easier, in my opinion. Anyone disagree?
I agree in principle Bix but I hesitate to use the words EASY and Eurodollar in the same sentence...actually the words easy and any product don't go together...anyway, yes, the idea that you can do larger size for smaller moves is, in my opinion, the beauty of this product...you don't have to suffer the horrendous noise in the 10yr...the EuroDollar tends to be a bit more pure in the direction it takes and the price action that drives it...though obviously, not always. But saying that it is EASY to trade size in this market is a little misleading...it is easy to get filled on a lot of size, trading the resulting position may not be!lol
Great point...I retract the use of the word "easy". I am amending that statement to "trading size in this product is possible..." Thank you for pointing that out. If anyone notices me using the word easy with any product ever again on any thread, please correct me, as Trdinglife just did.
Quote from dsguns1:
Trdinglife
Read some of your posts and you seem like you have a good grasp on the ED's. Thanks for the great input. Ive been trading 10 yr.'s for about nine months and just started trading the ED's last Friday. Im really shooting for 4-6 1/2 ticks per day (Im doing 25's right now, my firm will push me up the more consistent I am with them). My initial strategy is two fold....first, Im looking to enter when the contract trades to a level, is out of value, and the 10-yr has basically exhausted (or put in a tail on the Mkt Profile). ALot of traders I know on the floor say this works really well when fading the first move in the morning b/c spreaders will usually come in at this point and drive the contract back into value. Also, IM looking to trade these during numbers (either getting in if the number is out of line OR fading the market on smaller numbers and the market trades to a good level.
My questions to you are this.......Does this strategy sound good? What kind of things are you looking for and getting in on (Some guys at my firm just scalp it in the direction of the market until about 1030 cst., off the back of the 10 yr and using the market profile...This works well for them, but I am ultimately looking to make fewer trades and have a goal of being able to get in on trades for 100-200 lots.)? And (the big one) are you generally working the bids and offers or are you trading it more as momentum trade, getting in when the market is going bid/offer?
Any answers questions or comments from you or anyone else would be GREATLY appreciated.................
dsguns, I will agian agree with bix that you are on the right track...and your ideas about how to enter into trades are fairly sound...but what I would also say is don't confine yourself to one style of trading...there will be occasions when trading the range will work; or trading the breakout will work; or scalping will work; or you'll find a great trade location for a position trade; or price action will lead you into a good trade. What you need to work on is developing an approach that can allow you to be flexible enough to adapt to all situations and trade them effectively...however, as I expect you already know, this takes time and experience...you will naturally gravitate to the style that suits your personality at first...but to really take advantage of what the market offers, you have to adapt...
I attempt to do the above...but as for your last question, I will bid and offer when the market is stagnant and wait for things to come to me...but will definitely take market when things are moving around OR there is a price I definitely want! some times you just can't wait around...
Hi guys,
Been working with these for a few weeks now, trying to transition from the equities markets. I'm generally working the ED off the 10 year and find that I'm trading quite a few flats since there is so much "noise" in the notes. Is there anything else you guys are watching on your entries that may help me? Part of the problem is that I'm a momentum trader in the equities doing about 100k a day, and that kind of style seems not well suited for the eurodollar. Need to slow my fingers down. Any suggestions are appreciated.
Part two of this question. I did well today off the Final GDP number. I'm using Reuters 3000xtra over citrix to get my info. Does anyone use any other system they're particularly happy with for the numbers in the morning? Reuters is pretty fast most of the time, with a page that posts the number when it's released, but I'm wondering if there isn't better out there.
Been working with these for a few weeks now, trying to transition from the equities markets. I'm generally working the ED off the 10 year and find that I'm trading quite a few flats since there is so much "noise" in the notes. Is there anything else you guys are watching on your entries that may help me? Part of the problem is that I'm a momentum trader in the equities doing about 100k a day, and that kind of style seems not well suited for the eurodollar. Need to slow my fingers down. Any suggestions are appreciated.
Part two of this question. I did well today off the Final GDP number. I'm using Reuters 3000xtra over citrix to get my info. Does anyone use any other system they're particularly happy with for the numbers in the morning? Reuters is pretty fast most of the time, with a page that posts the number when it's released, but I'm wondering if there isn't better out there.
Quote from riskarb:
Bloomberg is faster to deliver, IMO
RiskArb,
I think you are wrong about that. I have a bloomberg term. and our analyst has Reuters in front of him as well. We have consistently seen Reuters beat Bloomberg to the punch. There are occasions wwhere Blmberg beats them, but not too often.