Hang Seng and Nikkei futures

Hi guys,

i've noticed the volatility in the hsi, though there often seems to be nice trends.

i'm still in the observation stage and cant seem to get a feel of the hsi so far.

I was wondering which of the strategies seem to work better for the hsi?

1. scalping or holding for at least 30 mins (intraday swing)

2. what are the minimum stops (# of point) needed so as not to keep getting whipsawed in and out considering the sudden jumps in price at times.

3. what basic strategies seem to work better? MAs/trends/pullbacks? or range-like (overbought/sold) styles?

thanks for your inputs.
 
I normally trail stoplimits rather than stops so get a slippage of 0 to 1 point as hsi fills and backfills a lot. But if it hits my worst case stop and its in a bad place 3 is not unreasonable and if you go countertrend at a key breakout 20 points is possible.

All of them can work Arzoo.

You need to set your stops based on structure or a probability of stopping out from your chosen entry point. You can trade reversals as HSI has well defined behaviour around prior highs and lows. You can also swing trade trends by buying pullbacks and breakouts.

Some use stops in the 15-20 point range, some use much closer stops but that requires a reason to believe that breaking the closer point reflects a likely failure of the chosen pattern.
 
Quote from kiwi_trader:

I normally trail stoplimits rather than stops so get a slippage of 0 to 1 point as hsi fills and backfills a lot. But if it hits my worst case stop and its in a bad place 3 is not unreasonable and if you go countertrend at a key breakout 20 points is possible.

All of them can work Arzoo.

You need to set your stops based on structure or a probability of stopping out from your chosen entry point. You can trade reversals as HSI has well defined behaviour around prior highs and lows. You can also swing trade trends by buying pullbacks and breakouts.

Some use stops in the 15-20 point range, some use much closer stops but that requires a reason to believe that breaking the closer point reflects a likely failure of the chosen pattern.
More...


Kiwi,

How do you find today's sideway (10:30~12:30, HK time)?



Will
 
Good. I was exiting just below prior highs because it had moved up a lot and hadn't broken out again.

I got caught out this afternoon assuming that resistance would hold because the Nikkei had been so down over lunch.
 
i traded hang seng for a little while and got my ass handed to me in more ways than one. I stick with nikkei now, hang seng too volatile for my style
 
Quote from aus_SPIder:

i traded hang seng for a little while and got my ass handed to me in more ways than one. I stick with nikkei now, hang seng too volatile for my style
More...

hang seng is a terror index, unpredictable and all over the place...only plus is that u can try place orders 10-20ticks outside mkt and often get a fill. all for a quick scalp tho, cuz when u do get filled u are always wrong.
 
IMHO Bitstream you are not thinking well about HSI and not perceiving it clearly.

First, you need to get the timeframe right. Second you might consider it to be like an index with a bigger dollar point value. Imagine if SGXNK traded at each point rather than ticking over 5 points a time (in fact watching the two will illustrate this).

So a 5 point move is equivalent of 1 point. One thing this suggests is setting stops appropriately. A second thing is that you can limit into the chop within 5 or 10 point noise (1 to 2 ticks of the nikkei) to get a much better fill. A third thing is that if you look at the tick as being 5 points the index looks a lot less thin than many perceive it (average 25 contracts on each "point" rather than 5).

On the thinness, be aware that many hide their size so the ability to get a fill is better than it might appear from first glance. They also push it back so that they can get filled at a better point in that 5-10 point range before it continues (so can you).

Just thoughts about how one might approach it for more profit - I might have said too much :)
 
well, u know i like asia and trade it often, me thinks it is a fair asseesment of the index :p. not necessarly negative, just that can be terriffyin' to trade. u gotta luv those fills tho, in and out in 1 sec buyin' 10ticks below mkt.:D
Quote from kiwi_trader:

IMHO Bitstream you are not thinking well about HSI and not perceiving it clearly.

First, you need to get the timeframe right. Second you might consider it to be like an index with a bigger dollar point value. Imagine if SGXNK traded at each point rather than ticking over 5 points a time (in fact watching the two will illustrate this).

So a 5 point move is equivalent of 1 point. One thing this suggests is setting stops appropriately. A second thing is that you can limit into the chop within 5 or 10 point noise (1 to 2 ticks of the nikkei) to get a much better fill. A third thing is that if you look at the tick as being 5 points the index looks a lot less thin than many perceive it (average 25 contracts on each "point" rather than 5).

On the thinness, be aware that many hide their size so the ability to get a fill is better than it might appear from first glance. They also push it back so that they can get filled at a better point in that 5-10 point range before it continues (so can you).

Just thoughts about how one might approach it for more profit - I might have said too much :)
More...
 
i think u misunderstood me kiwi; hsi is the only mkt where i can see on tws both orders lines [entr/exit] at the same time, go figure.
 
You must log in or register to reply here.
Back
Top