Hang Seng Futures

I'm looking for an index contract to trade in the evening and the info you provided is fantastic. Thanks for sharing!!

Quote from filter_sweep:

I'm not sure what attracts you specifically to HSI, but if you live in the US and want to trade at night, I would highly recommend the Taiwan futures contract (STW) on the SGX exchange through IB.

- Starts earlier than HSI
- No lunch break
- Good liquidity (~40 contracts at each level in the DOM)
- Nice volatility (2-3% intraday moves are very common)
- Very little slippage on market stops (especially compared to HSI)
- USD based, no currency risk
- Low margin - $2250 overnight right now (lower R:R compared to HSI), which allows for more granular scaling in/out if that's your thing
- $10 tick, $4.30 round-trip through IB
- 50-70 tick days are quite common, 100 tick range occasionally, usually at least 35 tick range
- Can be quite "trendy" depending on your timeframe
More...
 
I misspoke regarding the commission, it's actually $4.60 round trip until you hit the volume breaks (which start after 300 sides / month w/ IB).

I'll try and post some charts later on tonight between trades to show that it moves just like anything else traded by human beings.
 
Quote from ProfitTakgFool:

I'm looking for an index contract to trade in the evening and the info you provided is fantastic. Thanks for sharing!!
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Glad to be of help, PTF.

Since I've read many of your posts, and feel that I'm somewhat familiar with your trading style, allow me to make a comment or two regarding counter-trend trading STW.

This contract can be quite trendy... I might be wrong (haven't done the research) but I'm willing to bet it has one way-directional sessions more often than the US indexes. That said, 38% and 50% retracements are very common on those days. A word of caution though... I've seen this thing rip 50-60 ticks in one direction within 5 minutes with no more than a 3-4 tick pullback during the move. It's quite crazy when you think about the % of the underlying. The action in the DOM is fierce... true panic. I've seen these moves both at the beginning of trends and at the end of trends (capitulation). I am mainly a trend following / scalper but I will occaisionally strap on one of my daughter's diapers and start fading those moves when it's at the end of a trend (meaning it has been a one-way day but there is still at least 1 hour left in the cash market), but I keep lots of powder dry to scale in and won't put on my first unit until it's already moved at least 25 ticks w/o a pullback. I don't fade these moves at the beginning of trends, as I have found pullbacks in the early stages of the Taiwan trends can be very shallow, sometimes only 5 ticks. I haven't had to take a loss on one of those trades yet, but I imagine the day will come that the pullback won't be strong enough to get me out at my minimum profit, and I'll have to bite the bullet. On the other hand I am also prepared to bail if the pullback never comes.

Anyway, you'll have to do your own research. Unlike some traders, I don't think your trading style is doomed to failure... after all, I think Linda R. said she was buying on Black Monday and made a profit the next day. However, you should at least be aware of what the contract is capable of and be prepared for it.

Good luck!
 
Quote from filter_sweep:

I'll try and post some charts later on tonight between trades to show that it moves just like anything else traded by human beings.
More...

As promised, here are some 1 minute charts from the last couple of weeks for your viewing pleasure:
 

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