Help with getting started on DAX Futures

[novicefutures]

omni:

Thanks for your advice! Greatly appreciated. I think I kind of know what to expect from the FDAX. I recall the ER2 moving somewhat in a similar way before the substantial increase in volume earlier this year. But then again, my recollection may not be accurate!

Good trading to you.

Cheers,
novice

 

[Hydrogen]

FDax is the most volitile of all the instruments i trade. When it trades at the open 2:00 am central it trades based on its own fundamentals. During US trading hours it is a slave to the US markets. Execpt for now it also trading based on the uncertainity of the recent german elections. It can be unforgiving and knock u off mentally too. Also the margins for trading are two/three times than required for the eminis (ES etc) First wet your feet with ESTX (Eurostoxx 50). Not too volatile. Trading margins are even less than required for the US eminis. After successfully trading ESTX then graduate to Fdax.

 

[qazwsxedc]

Quote from Hydrogen:

FDax is the most volitile of all the instruments i trade. When it trades at the open 2:00 am central it trades based on its own fundamentals. During US trading hours it is a slave to the US markets. Execpt for now it also trading based on the uncertainity of the recent german elections. It can be unforgiving and knock u off mentally too. Also the margins for trading are two/three times than required for the eminis (ES etc) First wet your feet with ESTX (Eurostoxx 50). Not too volatile. Trading margins are even less than required for the US eminis. After successfully trading ESTX then graduate to Fdax.

That's something I've always wondered: How DO you trade a product as volatile as the DAX intraday? Longer timeframe / institutional perspective I can understand, these guys average in over a couple of days and don't care about intraday volatility. But every time I've tested something that works elsewhere it's fallen flat in the DAX.

 

[Bitstream]

Quote from qazwsxedc:

That's something I've always wondered: How DO you trade a product as volatile as the DAX intraday? Longer timeframe / institutional perspective I can understand, these guys average in over a couple of days and don't care about intraday volatility. But every time I've tested something that works elsewhere it's fallen flat in the DAX.

Get in at the open.
Get out at the close.

 

[Bitstream]

It sounds simple and evident but many don't want to enter at open because they are wrongly told by other traders it is a bad moment.

 

[mokwit]

On equities futures in general I tend to agree. Entering the futures in what was the direction for the last 15 minutes just as the cash opens can be a recipe for getting it wrong, but if you enter after some indication of direction when the futures open you can find out you were wrong but wrong with leeway to get a breakeven stop in. Also if you were right on direction at the open it frequently will not pull back to test your stop.

 

[nzbryant]

Quote from FuturesTrader71:

I will keep this short and simple: the FDAX is close to the worst product to get started in as a futures trader.

Thanks FT71 - I was thinking the same thing as the OP for similar reasons - nice to have your input.

 

[mokwit]

HSI is probably the worst, makes DAX look like a Gentleman's market.

Don't let that USD 6.25/tick lull you into a false sense of security

 

[Bitstream]

Quote from mokwit:

On equities futures in general I tend to agree. Entering the futures in what was the direction for the last 15 minutes just as the cash opens can be a recipe for getting it wrong, but if you enter after some indication of direction when the futures open you can find out you were wrong but wrong with leeway to get a breakeven stop in. Also if you were right on direction at the open it frequently will not pull back to test your stop.

Yep, going blind at open is almost suicidal, much better to wait for some indications like price action, volume and direction.

Usually after 5-10 min. you should already have a good idea of what is supposed to happen.
On equities though, especially on earnings news related stocks sometimes I eneter blind and so far it has paid off more often than not.

 

[Wittgenstein]

Good thread.